Understanding the Modern C-Suite: Strategic Insights for HR Leaders

The C-suite landscape has transformed significantly in the past few decades, marked by significant growth in leadership team size and the addition of numerous new roles, according to a research collaboration between SHRM and The Burning Glass Institute, an independent nonprofit that conducts data-driven research on the future of work.

The study illuminates how these changes impact the roles of HR leaders and the expanded executive teams. For HR executives, this shift underscores the need to navigate a more complex leadership ecosystem while preparing for future disruptions.

“As the C-suite becomes more specialized, HR leaders play a pivotal role in shaping executive teams that reflect both organizational needs and societal priorities like sustainability and diversity,” said SHRM CHRO Jim Link, SHRM-SCP.  

The Expanding C-Suite Reflects Growing Complexity  

The modern C-suite has seen explosive growth, with senior executive teams increasing in size by an average of 160% between 1990 and 2023. This trend is most pronounced in large organizations: In 2023, companies with at least 5,000 employees averaged seven additional C-level roles per CEO, compared to just 1.5 in companies with under 200 employees.  

This shift stems from rising business complexity, driven by demands for technological innovation, environmental sustainability, and workforce inclusion. For example, roles such as chief technology officer (CTO) and CHRO are now vital in managing these intricacies, reflecting how businesses are adapting to structural changes and societal pressures.  

“Organizations must strike a balance between innovation and functionality,” said James Atkinson, VP, thought leadership, at SHRM. “HR leaders are central to this effort, ensuring that as new roles emerge, leadership teams remain cohesive and aligned with the company’s long-term mission.”

Emerging Roles in the C-Suite Highlight Organizational Priorities

Amid a contraction in C-suite positions in 2023, emerging roles such as chief revenue officer (CRO) and chief diversity officer (CDivO) demonstrated remarkable staying power. For every 100 CEOs added, companies hired roughly 45 CROs as of 2023, compared to 3.9 CROs for every 100 CEOs in 2019, underscoring the emphasis on data-driven growth strategies.  

Similarly, the share of CDivOs entering a C-suite level job for the first time surged 187% in 2021-22 compared with 2018-19, signifying a growing corporate focus on inclusion. The wellness movement is also making its mark: Postings for chief wellness officers (CWOs) increased by 69% in 2023, highlighting a shift toward employee-centric leadership amid ongoing talent retention challenges.

CHROs Rank as the Seventh Most Common C-Suite Role

The growing prominence of CHROs in the C-suite underscores the strategic importance of HR leadership in modern organizations. Among CEO-led companies, CHROs were the seventh most prevalent executive role, with eight CHROs per 100 CEOs in 2023.  

While this number trails behind those for CFOs (68 per 100 CEOs), COOs (36 per 100 CEOs), CTOs (22 per 100 CEOs), and chief information officers (CIOs; 21 per 100 CEOs), it reflects the increasingly critical role of HR in driving organizational success. As companies navigate talent challenges, diversity initiatives, and workforce strategy, the CHRO’s presence in the C-suite has become indispensable.  

Additionally, larger firms are more likely to prioritize people-oriented roles within their leadership teams. Out of 14senior executive roles, CHROs and CDivOs rank as the eighth and 10th most prevalent C-suite roles, respectively, in organizations with at least 5,000 employees. In contrast, these roles are less common in smaller companies, with CHROs ranking 10th and CDivOs ranking 16th in firms with 50-199 employees. Notably, virtually no organization with fewer than 200 employees has a CDivO.

Actionable Insights for HR Leaders

1. Benchmark Against Industry Norms and Customize Your C-Suite

HR leaders should benchmark their organization’s C-suite composition against industry norms to ensure alignment with strategic needs. For instance, companies with fewer than 1,000 employees have increasingly appointed CROs and chief strategy officers (CSOs), reflecting a focus on driving accelerated growth.  

Similarly, organizations facing environmental risks may benefit from adding a chief environmental officer (CEnvO), while technology-driven firms should evaluate how a combination of CIOs, CTOs, and chief security officers (CSecOs) can address key capabilities and manage critical risks effectively.

2. Navigate Role Evolution

As the responsibilities of CHROs and CDivOs expand, HR leaders must clarify the scope of these roles and provide adequate resources to mitigate high turnover rates. CDivOs, for instance, average only 1.8 years in their position, reflecting organizational challenges in providing enough supporting resources. HR leaders should advocate for sustainable role frameworks that support long-term success.

3. Use Vacancies Strategically

Open C-suite roles offer an opportunity to reassess organizational priorities. For example, a large company replacing a departing CDivO might consolidate those responsibilities under the CHRO, while another might split the CDivO’s and the CHRO’s duties into separate roles. The optimal decision requires a thorough review of industry benchmarks, organizational goals, specific needs, and budget constraints.

4. Prepare for the Future Through Specialized C-Suite Roles

C-suite expansion slowed in 2023, with job postings for executive roles dropping 7% from the previous year and 3% compared to 2018. This reflects economic caution and a focus on stabilizing revamped leadership teams.  

Despite this, specialized roles are on the rise. Postings for chief growth officers (CGOs) more than doubled in 2023, while ones for chief wellness officer (CWO) roles surged by 69%. Additionally, demand increased for chief investment officers (CInvOs) and chief program officers (CProgOs), signaling ongoing diversification within the C-suite. HR leaders should stay attuned to these trends. Early adoption of such roles may position companies as leaders in innovation and governance.

The Path Forward

The evolution of the C-suite highlights a critical juncture for HR leaders. While expansion has slowed, the underlying complexity and specialization of leadership roles continue to grow.  

For HR executives, this requires a dual focus: strengthening existing leadership teams while anticipating future needs. By leveraging data, benchmarking against peers, and aligning leadership strategies with organizational goals, HR leaders can drive long-term resilience and agility.