‘Developing the Next Generation of CHROs in Southeast Asia’ Report: HR Background No Longer Critical to Securing CHRO Role

SINGAPORE - Media OutReach - 24 MAY 2017 -

• More than half of CHROs surveyed had a career outside of the HR function before becoming the CHRO
• Current Southeast Asia CHROs identify 'Thinking Strategically', 'Driving Change', and 'Business Knowledge' as their top 3 key improvement areas

Over 50 percent of CHROs in Southeast Asia do not have an HR background, according to the 'Developing the Next Generation of CHROs in Southeast Asia' report from Aon, a leading global professional services firm providing a broad range of talent, risk, retirement and health solutions.

Almost 40 percent within this group have a 'Mixed' background, having gained a majority of their experience in a variety of roles such as line HR, business, or consultant.  

On the other hand, global CHROs don't have as much variety in their career experience prior to becoming the Head of HR, with only 24% having 'Mixed' experience.

According to the report, the evolving needs of the business, the volatile economic environment, and the rapid technological enhancements are catalysts for transforming the role of the CHRO.

Jeremy Andrulis, CEO of Aon Hewitt in Southeast Asia, said: "CHROs are now expected to be business-drivers, not just business advisers. With more non-internal HR professionals assuming CHRO roles, it's critical that in-house HR professionals aspiring to be CHROs broaden their exposure and skills beyond the HR realm. This enables them to think from an outside-in perspective and speak in the language of business leaders. What's essential is for CHROs to be critical stakeholders in defining the firm's strategy, and apply critical thinking to drive the business strategy through people programmes within the organisation."

Behavioural Competencies the Key to Developing a Business Mindset

With an increasing number of CHROs coming from non-traditional backgrounds, there's a critical need for HR to develop business acumen and capabilities.

88 percent of CHROs identified 'Thinking Strategically' as the most important behavioural competency yet they only rated themselves 3.1 out of 5 on their own capability levels.

Other behavioural competencies in the top 3 are 'Driving Change' (64%) and 'Business Knowledge' (57%). Similarly, the CHROs only rated themselves 3.3 out of 5 for 'Driving Change' and 3.2 out of 5 for 'Business Knowledge'.

Na Boon Chong, Senior Client Partner for Aon Hewitt in Southeast Asia, said: "Some of the most successful companies in ASEAN are state-owned or founder-managed. In that environment, there is a larger consideration beyond the immediate commercial ones. Other than professional and business skill-sets, acting as the 'conscience' of the organisation is key to a CHRO's success. A CEO of a reputable state-owned enterprise calls it acting as an 'honest broker'. That is, knowing the pulse and essence of the organisation, and having the courage to disagree and advise the board and/or the CEO when they steer off course in people issues."

About Aon

Aon plc (NYSE: AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. For more information, visit https://apac.aonhewitt.com

About the Developing the Next Generation of CHROs in Southeast Asia Study

Adapted from Aon's global "Learning to Fly" study, this report is based on insights gathered from personal interviews and survey responses from 67 CHROs across the Southeast Asia region. The participants currently lead the HR function of organisations headquartered, or located in the region, with fifty percent of participants having over 26 years of experience. Companies represented in the report are primarily multi-nationals and local organisations. Collectively, these organisations represent USD 24 billion in annual revenue.

To download the full report, please visit:

http://apac.aonhewitt.com/home/resources/thought-leadership/developing-next-generation-of-chro-2017