As organisations navigate uncertainty, talent transformation, and the rise of AI, could HR finally be poised to take its place at the helm?
In today’s rapidly shifting business landscape, the path to becoming a CEO is evolving and HR leaders are increasingly well‑positioned to step into the top role. Drawing on findings from Livingston James’ latest Future CEO report in association with EY, Livingston James Director, Ali Shaw, explores why the traditional pipeline to the top job is being challenged, how the growing importance of emotional intelligence and people-first leadership is reshaping expectations, and what HR professionals can do to position themselves as credible contenders for the CEO role.
The Rise of People‑First Leadership
There is no single route to becoming a CEO – but if most people were to guess, they would probably assume the leader of a business came from a finance or operations background. If you listed the potential sources of an organisation’s next CEO, it’s likely few would put HR at the top of the list.
That certainly bears out in our recent Future CEO report, which surveyed business leaders across the country. It found that just 3% of CEOs came from a HR background – the joint lowest with technology – compared to 35% for operations, 32% for commercial and sales, and 19% for finance. Separate studies have shown more than half of FTSE 100 CEOs have a finance background.
But, could an increasingly uncertain world be about to change that? Roisin Currie at Greggs is a rare example of a CEO who has come from a HR background at a major company, but there are compelling reasons that suggest more could follow her lead in the years ahead.
1. The Evolving View of the CEO Role
As part of our research, what many people perceive as ‘soft’ skills – often associated with HR – came to the fore. Nearly half (49%) of respondents said high emotional intelligence was a critical skill for a CEO to succeed today, far higher than in previous years, no doubt influenced by the many uncertainties of the past year.
2. Ownership of Leadership Development
HR leaders tend to have a high degree of ownership of the development of the next generation of leaders within organisations. They have major input not only on learning and skills frameworks, but also on the wider talent pipeline – areas that have seldom been more important as AI permeates every part of how businesses function.
3. Regular Engagement across Teams and Divisions
On a similar theme, HR likely also has regular engagement with every division and team – that gives it a people-first perspective few other disciplines can match. HR leaders will know how teams operate, the dynamics within them, and their development needs. Those strengths in employee engagement, coaching, and emotional intelligence enable them to build high-performing teams and foster cultures of trust and alignment.
What is Holding HR Leaders Back
Our research indicated that there is no lack of interest among HR directors in taking the step up to CEO – 42% said they were interested in the job and 50% believe they have the potential to reach that level. The challenge for many is their progression, with only 42% from those surveyed suggesting they felt their organisation has adequate development pathways.
The main challenge for HR leaders is the perception that they are too internally focused. To be considered credible CEO candidates, they need to demonstrate business acumen in areas like financial strategy, P&L ownership, commercialisation, and market dynamics. Gaining experience outside their function through cross-functional leadership roles, strategic project ownership, or secondments in operations and finance is essential.
Of equal importance is developing a clear understanding of how people create value in an organisation and aligning HR initiatives to measurable strategic outcomes. While the CEO role is not out of reach, HR leaders’ success will depend on their ability to demonstrate breadth, commercial insight, and strategic impact across the entire organisation.
From our experience, seasoned HR professionals are already doing much of that and more than proving their worth as senior leaders in a business. It would be no surprise to see more HR representation in the top job, as a result, but proving the discipline’s wider impact to boards and senior leadership will be absolutely critical in making that a reality in the years ahead.
Unlocking CEO Potential in HR Leaders
As organisations continue to navigate uncertainty, technological disruption, and shifting expectations of leadership, the capabilities long nurtured within HR are becoming increasingly central to business success. HR leaders who can demonstrate strategic influence and broad organisational impact are well positioned to play a far greater role at the top table.
If you would like guidance on your HR career development or support with CEO succession planning in your organisation, please contact Ali Shaw for a confidential discussion: [email protected]
Could an Uncertain World Mean More CEOs from a Human Resources Background?
As organisations navigate uncertainty, talent transformation, and the rise of AI, could HR finally be poised to take its place at the helm?
In today’s rapidly shifting business landscape, the path to becoming a CEO is evolving and HR leaders are increasingly well‑positioned to step into the top role. Drawing on findings from Livingston James’ latest Future CEO report in association with EY, Livingston James Director, Ali Shaw, explores why the traditional pipeline to the top job is being challenged, how the growing importance of emotional intelligence and people-first leadership is reshaping expectations, and what HR professionals can do to position themselves as credible contenders for the CEO role.
The Rise of People‑First Leadership
There is no single route to becoming a CEO – but if most people were to guess, they would probably assume the leader of a business came from a finance or operations background. If you listed the potential sources of an organisation’s next CEO, it’s likely few would put HR at the top of the list.
That certainly bears out in our recent Future CEO report, which surveyed business leaders across the country. It found that just 3% of CEOs came from a HR background – the joint lowest with technology – compared to 35% for operations, 32% for commercial and sales, and 19% for finance. Separate studies have shown more than half of FTSE 100 CEOs have a finance background.
But, could an increasingly uncertain world be about to change that? Roisin Currie at Greggs is a rare example of a CEO who has come from a HR background at a major company, but there are compelling reasons that suggest more could follow her lead in the years ahead.
1. The Evolving View of the CEO Role
As part of our research, what many people perceive as ‘soft’ skills – often associated with HR – came to the fore. Nearly half (49%) of respondents said high emotional intelligence was a critical skill for a CEO to succeed today, far higher than in previous years, no doubt influenced by the many uncertainties of the past year.
2. Ownership of Leadership Development
HR leaders tend to have a high degree of ownership of the development of the next generation of leaders within organisations. They have major input not only on learning and skills frameworks, but also on the wider talent pipeline – areas that have seldom been more important as AI permeates every part of how businesses function.
3. Regular Engagement across Teams and Divisions
On a similar theme, HR likely also has regular engagement with every division and team – that gives it a people-first perspective few other disciplines can match. HR leaders will know how teams operate, the dynamics within them, and their development needs. Those strengths in employee engagement, coaching, and emotional intelligence enable them to build high-performing teams and foster cultures of trust and alignment.
What is Holding HR Leaders Back
Our research indicated that there is no lack of interest among HR directors in taking the step up to CEO – 42% said they were interested in the job and 50% believe they have the potential to reach that level. The challenge for many is their progression, with only 42% from those surveyed suggesting they felt their organisation has adequate development pathways.
The main challenge for HR leaders is the perception that they are too internally focused. To be considered credible CEO candidates, they need to demonstrate business acumen in areas like financial strategy, P&L ownership, commercialisation, and market dynamics. Gaining experience outside their function through cross-functional leadership roles, strategic project ownership, or secondments in operations and finance is essential.
Of equal importance is developing a clear understanding of how people create value in an organisation and aligning HR initiatives to measurable strategic outcomes. While the CEO role is not out of reach, HR leaders’ success will depend on their ability to demonstrate breadth, commercial insight, and strategic impact across the entire organisation.
From our experience, seasoned HR professionals are already doing much of that and more than proving their worth as senior leaders in a business. It would be no surprise to see more HR representation in the top job, as a result, but proving the discipline’s wider impact to boards and senior leadership will be absolutely critical in making that a reality in the years ahead.
Unlocking CEO Potential in HR Leaders
As organisations continue to navigate uncertainty, technological disruption, and shifting expectations of leadership, the capabilities long nurtured within HR are becoming increasingly central to business success. HR leaders who can demonstrate strategic influence and broad organisational impact are well positioned to play a far greater role at the top table.
If you would like guidance on your HR career development or support with CEO succession planning in your organisation, please contact Ali Shaw for a confidential discussion: [email protected]
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