The Covid-19 pandemic kickstarted an era of relentless disruption: economic instability, geopolitical tension, shifting employee expectations and the relentless march of AI have created a whirlwind of transformation. To thrive in the second half of this decade, CPOs must redefine their purpose and reshape their functions, in in real time.
Through our discussions with 50-plus CPOs at Fortune 500 and FTSE 350 companies, five critical challenges have emerged for the CPO of 2030.
1. Expanding HR’s strategic mandate
The chief HR officer (CHRO)’s evolution into CPO underscores the growing strategic imperative of the role. By 2030, winning organisations will have CPOs who operate as core business leaders, not just HR specialists.
Read more: What does a futureproof HR strategy look like?
These CPOs must embed themselves in executive decision-making, driving discussions on workforce planning and leadership development. Currently, just 4% of CPOs believe their executive succession planning is sufficiently effective, highlighting the urgency of this transformation. To grow that figure, digital skills, predictive analytics and AI literacy will be essential.
2. Overhauling leadership pipelines
CPOs are on the front lines of succession planning, yet many CEOs and boards lack confidence in their organisation's ability to develop future leaders. More than one-third of executives say their leadership pipelines are not equipped to meet strategic goals.
To counter this, CPOs must integrate leadership development with broader business strategy, ensuring succession planning is continuous rather than reactive. Just 42% of HR leaders say succession planning isn’t prioritised because it is not tied to immediate strategic needs, while 31% cite a lack of data on potential successors as a major obstacle. Fixing this requires more proactive planning and alignment between leadership development and organisational goals.
3. Managing disruption in a cost-constrained environment
Balancing innovation, workforce stability, and financial constraints is an enduring challenge. The post-pandemic 'permacrisis' – ongoing disruption from economic turbulence, global conflicts and social change – demands that leaders provide clarity, focus and resilience.
CPOs must drive adaptability while preventing burnout. A focus on simplicity will help organisations maintain productivity amid uncertainty. High-impact HR functions will blend data-driven insights with human-centric leadership to sustain engagement.
Read more: Geopolitical risk named fastest growing danger to businesses
CPOs must also demonstrate ROI on transformation efforts, as boards and CFOs demand measurable returns. AI, workforce restructuring, and employee programmes need clear impact, whether boosting productivity, cutting costs or improving retention. It’s not just about adopting change but demonstrating how it drives business performance.
4. Adapting to workforce shifts
The rise of Gen Z, hybrid work models and a growing demand for flexible career paths require a rethink of workforce strategies. Younger employees prioritise purpose and skills development over job security, challenging traditional engagement models.
To support this, CPOs must navigate generational divides while ensuring inclusive work cultures. Office attendance policies, remote work flexibility, and professional development must align with shifting employee expectations. Meanwhile, Millennials are stepping into leadership roles earlier than previous generations, necessitating targeted leadership development programmes and making succession planning more critical than ever.
5. Mastering AI and data-driven HR
AI is transforming HR, yet 51% of all leaders – and 54% of HR leaders – say they are not adopting it fast enough, citing a lack of AI expertise as a major barrier. There is room for improvement, and the ability to harness AI will define successful HR functions by 2030. AI is already proving its worth elsewhere, with one company reporting a 15% increase in productivity following AI implementation, raising urgent questions about how to redeploy freed-up time and resources effectively.
Read more: Stay on top of skills and technology to overcome future challenges
In this new climate, CPOs must lead AI adoption, ensuring the technology enhances productivity while mitigating risks. Predictive analytics will revolutionise hiring, retention and leadership development. HR must evolve from administrative functions to data-driven strategy centres, leveraging AI to optimise decision-making.
By Sharon Sands, partner at Heidrick and Struggles
