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