Elevating HR Management: The Skills You Need for Influence and Impact

In this article we discuss:

• The value of a CHRO on the board
• How AI is impacting the CHRO's role
• The 3 skills you'll need for a seat at the board table
• A new era of HR management

CHROs across Australia and New Zealand are increasingly being called on to shape strategy in executive leadership and board meetings. Yet only 1% of Australian board directors in 2024 possessed a background in HR management or change management — a significant contrast to those with financial experience.

It's certainly not a reflection of the value that HR leaders bring to an organisation. In fact, 82% of organisations in ANZ acknowledge they add strategic value. So why aren't they securing director roles? And what skills do CHROs need to demonstrate in 2025 to get a seat at the board table?

The Value of a CHRO on the Board

The CHRO role is often misunderstood as administrative, when in reality, it’s one of the most enterprise-shaping roles in the C-suite. This is especially true at a time when talent shortages, hybrid working arrangements and multigenerational workforces are forcing organisations to be more agile and tap into different pools of talent.

Perhaps the greatest value a CHRO brings to the board table is aligning people and business goals through a strong understanding of organisational capabilities and change management. While many HR leaders (70%) are already responsible for driving change in their organisation, there is no doubt this can be better leveraged from a board position.

CHROs also foster a positive organisational culture, with strong values that are embedded in all areas of the business, from the way change is communicated to the way promotions are evaluated. This not only drives important outcomes like employee engagement and retention, but is vital for creating a fair, equitable and compliant workplace.

As experts in the talent landscape (both within and external to the organisation) CHROs have a deep understanding of skills gaps and development opportunities. This is critical knowledge for board directors, considering one of the biggest challenges for businesses in ANZ in 2025 is attracting, retaining and upskilling talent to meet the needs of a more digitised future.

How AI is impacting the CHRO's role

Leveraging this value at a director level is only going to become more important as AI adoption increases — not only within the HR function but across the business. Research by the Australian HR Institute found that organisations leading the way in AI adoption had HR departments that also considered themselves leaders, or were willing to experiment with AI.

Agentic AI in particular — where AI systems can make decisions, plan next steps and take action autonomously — is creating a shift in the workforce where leaders will be expected to oversee a workforce of both human and digital employees. Preparing the workforce for this change will require investment in workforce planning and reskilling programs, at scale.

This makes CHROs uniquely positioned to collaborate with board directors and other C-suite leaders, to ensure long-term success for the business, while remaining people focused. It also provides CHROs with an opportunity to upskill in the use of AI. The Australian HR Institute notes that without this knowledge, HR’s role in influencing how and when AI is used is diminished.

The 3 Skills You'll Need for a Seat at the Board Table

To secure a director role, you will need to offer more than just functional value. You must also demonstrate skills beyond HR management, and seek out opportunities to deepen that expertise. Here are three areas that I believe are critical for CHROs leaders to master, in order to elevate their role to the board.

1. Commercial and P&L Exposure

A perceived lack of business acumen is one of the most common barriers that I see in CHROs trying to land a director role. It's vital that you understand the business' financial performance, operational processes and industry. And if you haven't acquired that experience, it's time to get out there and be proactive about it. Here are few ways you can do this:

• Work closer with the CFO and get involved in budgeting, cost optimisation and workforce planning linked to business outcomes.
• Take ownership of cross-functional initiatives in areas such as transformation, M&A or productivity programs with measurable financial impact.
• Expand your role scope to oversee functions beyond HR (such as ESG, shared services or operations) that directly affect the bottom line.
• Join internal or external boards (such as subsidiary or non-profit) to gain governance and financial oversight experience.
• Invest in financial acumen by completing director or finance training, to build literacy in reading financials and understanding commercial levers.

2. Technology, Data and Analytics

As AI programs continue to cross functional boundaries, CHROs no longer have the luxury of operating in isolation from technology, data and analytics teams. If you want to step into a director role, you'll need to demonstrate that you can make business decisions informed by data-driven insights.

For example, labour is often the highest expense in an organisation. So using real-time HR metrics to create a global view of workforce costs, which you can then use to undertake scenario planning, can demonstrate your ability to quantify the impact of HR programs on productivity and profitability.

3. Human-Centric Skills

Our research found that the top four human-centric skills deemed least likely to be replaced by AI are also those considered the most important – both today and in an AI-driven future. These are:

• Ethical decision-making and moral judgment
• Emotional intelligence and empathy
• Human networking and relationship building
• Conflict resolution

This is also reflected in a recent Gartner HR survey, which revealed that fewer than one in four C-suite leaders believed CHROs are effective at managing tensions or fostering cohesion. But when they are aligned with the CEO and demonstrate key leadership qualities, they can change that perception and become a trusted leader.

It's clear these 'soft' skills are in fact a solid foundation for any leader looking to build trusted relationships at an executive level, both within the organisation and across the industry. Consider how you can build on the human-centric skills you already have, and communicate the value of what you do in a way that resonates and aligns with other leaders across the business.

A New Era of HR Management

People are an organisation's greatest asset. But many are still not giving their CHROs a seat at the board table. By understanding the value you bring, and strengthening your commercial, technology and human-centric capabilities, you can usher in a new era where HR management is valued as the influential and impactful role that it is.

Our research shows that HR leaders who are succeeding in today’s business context are proactive, human-centered, and leverage technology and data to add strategic value to their organisations. Learn more in this Workday report.