The Strategic Power of Aligning HR with Leadership

As the most prominent and visible representatives of their organizations, presidents and CEOs traditionally have focused on external responsibilities, such as forging partnerships and building trust with the clients, customers, or communities they serve.

In today’s increasingly complex and uncertain landscape, nonprofit leaders are not only reacting to external pressures—they’re also turning inward with greater urgency to reassess and intentionally shape their organizational cultures. An organization’s people are its single biggest financial investment, so with staff morale fluctuating, missions undergoing reevaluation, and funding sources shifting, these leaders recognize that a strong internal culture is not a luxury but a necessity.

As a result, it will be essential for these leaders to strategically elevate the role of Human Resources, understanding that recruiting, engaging, and retaining top talent is fundamental to maintaining continuity, trust, and mission alignment during times of change. Rather than viewing HR as a transactional function, they should position it as a central force for stability, adaptability, and long-term impact.

The importance of a strong CEO/CHRO relationship has become an accepted fact in the for-profit world. Between 2000 and 2024, the percentage of Fortune 500 heads of HR that reported directly to the CEO grew from 30% to 98%. The new reporting structure gives CEOs direct involvement in talent strategy and gives HR leaders the authority and the voice they need to navigate talent management issues in complex and often uncertain environments. As a result, close CEO/CHRO partnerships enable organizations to respond to today’s rapid digital transformations, shifting workplace dynamics, and evolving recruitment and retention imperatives.

Despite the benefits of a close CEO/CHRO relationship, this reporting trend has yet to spread at the same rate in the nonprofit sector as it has in the for-profit sector.

“Having a seat at the table with the CEO empowers CHROs and can strengthen organizations,” says Lindauer Senior Vice President Bob Giannino. “It gives HR leaders the authority they need to implement the kind of human-centered initiatives that not only drive employee engagement but also support the company’s overall mission and vision.”

Despite the benefits of a close CEO/CHRO relationship, this reporting trend has yet to spread at the same rate in the nonprofit sector as it has in the for-profit sector. According to a report from the Society for Human Resource Management, fewer than 60% of nonprofit heads of HR reported directly to their organization’s leader.

Although the HR-to-CEO reporting structure may not be appropriate for every organization, nonprofit leaders should consider how they might work closely with their HR heads to drive organizational success. Doing so can enable leaders to take a more active hand in shaping the kind of organization that meets both the needs of its employees and the larger communities they serve.

Building Recruitment Strategies That Drive Organizational Culture

Your CHRO’s approach to recruitment sets the tone for the entire organization, and your partnership with them in this task is vital. A misalignment in mission or values can trickle down through the whole organization, potentially causing declines in trust, engagement, and productivity. However, when you work together to define a vision for the future of your workforce, recruitment becomes more than simply a means of filling roles—it becomes a strategic tool for making an organization stronger.

A misalignment in mission or values can trickle down through the whole organization, potentially causing declines in trust, engagement, and productivity.

Consider, for example, an organization contemplating its approach to AI. If the CHRO and the CEO have not had intentional conversations around AI integration, ethics, or upskilling, recruitment strategies might focus too heavily on AI skills at the expense of aligned values around AI or vice versa. However, when the CHRO and CEO collaborate to define a shared vision for AI adoption, recruitment becomes a strategic tool and organizations hire professionals who not only have technical skills but also align with the company’s mission of responsible AI implementation.

As a result, the workforce is better equipped to embrace innovation and to accelerate the organization’s digital transformation in alignment with core values and goals.

Creating a Workplace Where People Stay and Grow

Retaining top talent is as important as recruiting it. Your CHRO has a pivotal role in creating an environment where employees feel valued, supported, and engaged. However, this responsibility is not the CHRO’s alone. Retention begins with you as a leader who understands where your team’s strengths lie and what they need to push your organization forward.

By listening to feedback and monitoring trends in employee engagement, you can proactively address challenges and identify opportunities to enhance the workplace. Your focus on transparent communication, trust, and accountability will contribute to a productive, values-aligned work culture that inspires loyalty while reducing turnover and its associated costs.

“CEOs who are visibly involved in major talent initiatives help employees feel a deeper sense of connection to leadership,” explains Senior Vice President Paula Fazli, who spearheads Lindauer’s HR search practice. “They are not only more inspired to bring their best work to the mission, but they are also more likely to stay long term.”

Your CHRO can act as the “pulse keeper” of the organization, serving as the bridge between you and employees. But only together can you translate organizational goals into meaningful initiatives that resonate with your team, ensuring they feel connected to the broader mission and high-priority goals.

For example, during times of transition—whether a restructuring or a merger—you can partner with your CHRO to lead efforts that keep employees engaged and motivated. By aligning your strategic vision with your CHRO’s expertise, you create a powerful combination that drives the organization forward.

Conclusion

Your CHRO’s work in recruitment and retention is about more than just filling positions or managing HR processes. It’s about shaping the future of your organization. They are an essential strategic partner in building a workforce that can adapt, innovate, and succeed in a rapidly changing world.

At Lindauer, we’ve seen how the most successful organizations are those where leaders partner with their CHROs to take an active, strategic role in workforce development. By focusing on recruitment and retention, you not only strengthen your organization but also create a workplace where employees feel empowered to do their best work.

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