As CHROs become transformation leaders, they face a delicate balancing act
Chief HR Officers across the Middle East are finding themselves on a delicate balancing act. As they and their HR teams play an increasingly important role in supporting growth, they are simultaneously facing strong pressure to transform while cutting costs and driving productivity. That is according to Korn Ferry’s CHRO Survey 2025 report.
The landscape for Chief HR Officers (CHROs) is in a state of flux, with changes arising from both within the organisation and the external environment. As global shifts and business transformation accelerate across the region, CHROs are confronting more external threats than ever before.
Korn Ferry’s survey of more than 750 global HR executives (around 200 in EMEA) found that economic uncertainty is seen as the top external threat impacting business in the next two years, cited by 60% of respondents. Following this were labour and skills shortages (39%), technology changes including AI (37%), political uncertainty (35%), and regulatory changes (35%).
At the same time, internal priorities are intensifying. 83% of CHROs said that contributing to growth and market expansion is a key priority for the next two years, while 61% highlighted the importance of accelerating the digital transformation of the HR function, alongside supporting the cultural change required to enable digital transformation across the wider business.
This must all be achieved while also making a step-change in efficiency and productivity, the survey found. 8 out of 10 CHROs said that cost efficiency and productivity rank as the second most important priority on their strategic agenda.
“In the Middle East, CHROs are aligning closely with global priorities – driving aggressive growth and market expansion while navigating pressure to cut costs and boost productivity. With major investments in technology and national talent strategies underway, the CHRO is now at the centre of delivering business transformation at scale,” said Jonathan Holmes, Managing Director of Middle East, Turkey & Africa at Korn Ferry.
Regional dynamics
One notable finding from Korn Ferry is that in the Middle East, the pressures and priorities facing CHROs are amplified by ambitious national agendas around AI adoption, Emiratisation, and digital transformation. “CHROs in the Middle East are operating at the sharpest edge of transformation,” said Holmes.
“This report confirms what we’re seeing on the ground: CHROs are expected to deliver more with less, lead with both empathy and agility, and reimagine how organisations attract, retain, and reskill talent for a very different future.”
CHRO = Strategic Leader
This wide-ranging portfolio of responsibilities and growing contribution to the CEO agenda means the CHRO role has undergone notable change over the years. Gone are the days when the CHRO focused solely on leading the HR function. Today, the CHRO is a business leader co-shaping strategy and driving organisational change.
Illustrating this, 61% of CHROs told Korn Ferry that their CEO frequently relies on them for strategic advice on key business issues, while 60% are co-driving broader organisation-wide transformation efforts.
This trend has also reshaped the profile of the CHRO. Since 2023, the average age of CHROs has increased by 5 years, signalling a preference for more seasoned professionals. At the same time, organisations are increasingly seeking CHROs with diverse career backgrounds.
“HR leaders are no longer just enablers; they are architects of growth, culture, and capability,” said Holmes. “Companies are therefore searching for more well-rounded, experienced CHROs who can lead through uncertainty and drive transformation in both talent and business strategy.”
Priorities for 2025
When asked about their human capital priorities for 2025, CHROs placed Culture & Organisational Change at number one, recognising the critical role corporate culture plays in nurturing innovation, resilience, and adaptability. Leadership Succession ranked second, with 30% of CHROs reporting that their leadership teams are not fully aligned with transformation needs, signalling significant work ahead.
Elevating HR Capability & Impact ranked third, with technology playing a major role. Tools such as HR analytics and AI are seen as key to generating insights, supporting strategic workforce planning, uncovering inefficiencies, streamlining hiring and talent processes, and driving initiatives that enhance employee satisfaction.
From a business perspective, CHROs oversee the agenda of ensuring AI is successfully embedded across the organisation. They lead reskilling and upskilling initiatives, which is increasingly important: Korn Ferry’s earlier research found that employees are eager for AI-specific training and opportunities to experiment with AI.
CHROs are also responsible for strengthening change management skills across the organisation, ensuring AI becomes part of everyday ways of working and culture. The challenge is significant: despite rising investment in AI, only 5% of HR teams surveyed by Korn Ferry stated they are well-prepared to integrate it, and none say they are “fully prepared.”
This challenge extends beyond AI. The study highlights that most CHROs feel their organisation’s overall transformation readiness is lacking. 40% of organisations are able to effectively ‘absorb’ disruptive ideas and innovative practices, while 60% admit their teams struggle to move away from entrenched ways of thinking.
Korn Ferry
The firm behind the research, Korn Ferry, is an award-winning consulting firm that specialises in human capital, offering services such as advisory, leadership development and executive search. Korn Ferry has offices around the world, including three in the Middle East – in Riyadh, Abu Dhabi, and Dubai.
