Less than 5% of CEOs globally come from an HR background. That statistic alone is enough to make anyone in HR pause. It feels like an unspoken rule: HR isn’t the path to the top. But what if that’s changing?
What if, in today’s business landscape, HR leaders are uniquely positioned to take on the CEO role? After all, who understands the human side of business better than HR? If you’ve ever questioned whether your career in HR could lead to the C-suite, it’s time to look at the steps that can take you there.
The Changing Landscape of Leadership
Traditionally, CEOs have come from finance, marketing, or sales. These departments were seen as the backbone of driving revenue and growth. But today, the value of people-centric leadership has skyrocketed. Companies are realising that a leader who understands culture, engagement, and talent can steer an organisation just as effectively as one who understands balance sheets. This is where HR professionals have a unique advantage.
Take Leena Nair, for example. She transitioned from Chief Human Resources Officer (CHRO) at Unilever to become the CEO of Chanel in 2021. Her career serves as a powerful reminder that HR professionals can lead global, iconic brands not just manage their people functions. Nair’s deep understanding of human capital and her ability to align company culture with strategy made her a natural fit for a CEO role in the luxury industry. If Nair can make the leap, so can others.
Mary Barra, the CEO of General Motors, also began her career in HR. While her path took her through engineering, her leadership skills were honed during her tenure in HR. Today, she leads one of the world’s largest automotive companies, proving that HR leadership can pave the way to the top of any organisation.
The Link Between Employee Satisfaction and Long-Term Shareholder Value
One key factor HR leaders bring to the table is a deep understanding of the link between employee satisfaction and long-term shareholder value. Companies with engaged and satisfied employees tend to outperform their peers in the stock market. A 2021 study by Gallup found that organisations with highly engaged workforces have 23% higher profitability than those with disengaged employees. Additionally, a long-term study by Alex Edmans, a finance professor at London Business School, showed that companies listed on the "100 Best Companies to Work For" consistently outperformed their peers in stock returns by 2.3% to 3.8% annually over a 28-year period.
HR professionals, who are at the forefront of employee engagement, are uniquely positioned to leverage this correlation to drive not only a strong workplace culture but also long-term financial gains. CEOs who come from an HR background understand that happy employees create a ripple effect that leads to improved customer satisfaction, higher productivity, and ultimately, shareholder value.
How can HR become a CEO?
Let’s talk about what it takes and how you can start positioning yourself now
Business-First Mindset
One of the biggest hurdles HR professionals face in reaching the top is the perception that they lack business acumen. To counter this, you need to be intentional about developing a strategic business mindset. It’s not enough to understand the people side, you need to immerse yourself in how your organisation generates revenue, manages costs, and competes in the market.
Start by:
Attending cross-functional meetings: Get involved in finance, operations, and product strategy discussions. Show that you understand how HR decisions impact the broader business.
Taking on high-impact projects: Volunteer to lead initiatives that involve multiple departments and have clear, measurable outcomes. These are the kinds of projects that give you visibility and prove your ability to lead beyond HR.
Sharpening your financial skills: Whether through formal education or self-study, make sure you’re comfortable reading a balance sheet, interpreting financial reports, and discussing metrics like profit margins and cash flow.
Lead with Influence, Not Just Authority
Effective CEOs don’t just manage; they lead by influence. The ability to align diverse groups toward a common goal is key. And the good news? As an HR leader, you already have experience in this area. Whether it's negotiating with executives or rolling out company-wide initiatives, HR professionals are constantly practising the art of influence.
To strengthen this skill:
Cultivate relationships with senior leaders: Don’t limit yourself to HR conversations. Make it a point to build strong relationships with key executives from other departments. Understand their goals and challenges, and position HR as a partner in solving those challenges.
Learn the language of influence: It’s not just about what you say, but how you say it. Be clear, concise, and data-driven in your recommendations. Frame your arguments in terms of business outcomes rather than HR jargon. This not only builds credibility but positions you as a strategic leader.
Expand Your Leadership Beyond HR
If you want to be taken seriously as a CEO candidate, you need to demonstrate that you can lead outside of HR. This often means taking on roles or projects that are traditionally outside your department.
Consider:
A rotational assignment: Some organisations offer rotational programs where leaders can gain experience in different departments. This can be a game-changer for HR professionals looking to prove they can handle broader business responsibilities.
Leading a business unit or a revenue-generating team: If the opportunity arises, take on a role that directly impacts the bottom line. This could be managing a product line, leading a new market initiative, or overseeing a sales team. Experience in revenue generation is often a key qualifier for CEO candidates.
Position Yourself as a Business Partner
The road to the CEO office is not just about gaining new skills; it’s about shifting perceptions. To rise through the ranks, HR professionals need to be seen as business partners, not just functional experts. That means consistently positioning HR initiatives in terms of business outcomes and impact.
Start by:
Tying HR metrics to business performance: Demonstrate how your HR strategies improve employee retention, productivity, and ultimately, the company’s financial success.
Becoming a strategic adviser: CEOs rely on their executive team for advice on more than just functional areas. Become a trusted adviser to your current CEO by offering insights on company-wide strategy, not just HR issues. Position yourself as someone who has a pulse on the entire business, not just the people aspect.
The Bottom Line
Can HR professionals become CEOs? Absolutely. The road may be less travelled, but for those willing to step out of their comfort zone, broaden their skills, and challenge perceptions, the opportunity is there. HR is uniquely positioned to understand and lead the most important asset in any organisation its people. The key is to combine that with sharp business acumen, an ability to lead beyond HR, and the strategic influence to drive results.
So, if you're an HR leader with aspirations for the top, don’t wait for the world to recognise your potential. Start positioning yourself today.
For more leadership advice and practical tips or if you're ready for a new challenge, check out our articles on how to give feedback and browse our latest HR job openings to find the right fit for your next career move.
This is inspirational, THANK YOU so much Martin.