CHRO Webinar

THE CHANGING FACE OF THE CHRO

Deborah J. Muller

• Founder of HR Acuity

• 25 Years of Experience in the HR Industry

• Worked with Fortune 500 Companies: Honeywell, Citibank, Marsh & McLennan

• Conducted hundreds of internal employee investigations.

An HR Pro walks into an elevator…

I panicked

The Aftermath

• Had this elevator ever done this before?

• Had this section of the building ever had issues before?

• Had any other guests or employees made reports of anything like this happening?

The Questions

So what does this have to do with you?

“CHROs and theHR function must use their unique knowledge, and experience to help business leaders tackle… issues across the entire enterprise.”

• Trusted advisor • Deriving talent

strategy • Driving a

performance-based culture

• Administering workforce policies and procedures  

The CHRO: Current Profile

Taking the next step

Soft vs Hard Skills

Litigation Pending

Most numerous types of litigation pending in the last 12 months

Regulatory/investigations

IP/Patent

Personal Injury

Contracts

Labor and Employment

19%

19%

25%

36%

48%

Source: Norton Rose Fulbright Litigation Trends Survey 2014

Legal Disputes

Source: Norton Rose Fulbright Litigation Trends Survey 2014

What types of legal disputes concern companies the

most?

Employment Practices Lawsuit

36%

Loss Events

Which one loss event would cause the most financial damage to your

company?

Source: Chubb 2010 Private Company Risk Survey

• Increased legislation

• Enhanced whistleblower protections

• High unemployment & economic uncertainty

• Demanding work environments

• Sense of entitlement

• Easier to make claims

Risk Factors…Outside of Your Control

Correlation between Unemployment & EEOC Charges

Sources: Bureau of Labor Statistics and EEOC

Unemployment Uncertainty

Source: Bureau of Labor Statistics

$372MM

521%

55%

total EEOC recoveries in 2013

Recoveries in discrimination-related claims continued to reach record highs in 2013. The EEOC obtained the highest monetary recoveries ever increasing by $6.7 million to $372.1 million

Record Recoveries, Losses, and Litigation

Each dollar of compliance spending saves firms an average of $5.21 in raised avoidance of legal liabilities, harm to company’s reputation, and lost productivity

ROI

more focus on risk management

In 2011, 55% of board member felt risk management was the one area that they would like to focus more then any other subject matter area.

Sources: EEOC, Corporate Executive Board General Counsel Roundtable, DBO Board Survey

• Establish policies and measure HR compliance.

• Develop a ready and capable team.

• Be the executive ears and eyes

• Build and maintain an ethical and accountable culture. 

• Manage people-related risk• Drive governance and

board support

The role of the new CHRO

Employee-Related Risk Management

• Review and assess your current state

• Create a consistent vernacular

• Put employee-related risk on your agenda

• Hold your people accountable

• Become the leader of employee-related risk for your organization

Getting comfortable with managing risk

Get Granular

www.hracuity.com

@hracuity

info@hracuity.com

dmuller@hracuity.com

• http://www.nortonrosefulbright.com/files/20140415-norton-rose-fulbrights-10th-annual-litigation-trends-115113.pdf

• http://www.hrpolicy.org/chro_role.aspx • https

://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_consulting_hctrend2012_peoplerisk_021512.pdf

• “Seizing the Opportunity, Part One: Benchmarking Compliance Programs.” 2003 Corporate Executive Board, General Counsel Roundtable.

• BDO Board Survey (2011)