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Inside: Starbucksā DEI Policy Faces Legal Fire
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Hello HR Leaders!
From revenge quitting to the rise of AI in HR and the rebranding of DEI, organizations and leaders are being forced to adjust to the shifting cultural and regulatory landscapes.
In this edition, we explore major trends shaping the workplaceāand what leaders must do to stay ahead.
Upcoming in this issue š°
āļø Starbucksā DEI Policy Faces Legal Fire: What It Means for Employers
š¤ Meet the CHAIRO: The Future of HR Meets AI
ā Stopping āRevenge Quittingā: 5 Leadership Fixes
š Scaling People Analytics: What Leaders Need to Know
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āļø Starbucksā DEI Policy Faces Legal Fire: What It Means for Employers
The legal battle over corporate DEI policies has officially begun.
This case is one of the first to test President Trumpās executive orders targeting DEI initiatives in the private sector. But hereās the twist: while Trumpās orders label DEI policies as āillegal,ā they donāt actually define what makes a DEI policy unlawful.
Key Takeaways
šØ Starbucksā DEI practices under fire: Missouriās lawsuit claims Starbucksā DEI commitments create unlawful hiring and promotion advantages for certain demographics.
š DEI goals vs. discrimination laws: Starbucks tracks BIPOC workforce representationā30% in corporate roles and 40% in retailābut the lawsuit calls this illegal.
š° Executive pay tied to DEI targets: The case also challenges Starbucksā policy of linking leadership compensation to diversity progress as potentially discriminatory.
āļø EEOC warning to employers: Two years ago, EEOCās Andrea Lucas flagged "race-restricted" programs as riskyāthis lawsuit puts that theory to the test.
š¤ Meet the CHAIRO: The Future of HR Meets AI
AI is reshaping the workplace, giving rise to a new leadership role: the Chief Human and AI Resources Officer (CHAIRO). As AI becomes integral to hiring, performance, and productivity, HR leadersārather than ITāare being tapped to oversee its governance, ethics, and compliance.
With AI agents rapidly evolving, businesses must decide who will govern these digital workers and ensure fair, ethical AI use.
Key Takeaways
š¤ A new AI-HR hybrid role? Companies may soon introduce a Chief Human and AI Resources Officer to manage AIās role in the workforce.
āļø AI needs oversight beyond IT: AI governance involves ethics, compliance, and workforce integrationāareas where HR is already experienced.
š Employee engagement meets AI: AI-driven tools impact hiring, training, and workplace culture, making HR a natural fit for AI strategy.
š¢ ADP is already ahead: ADPās Chief Data Officer is informally called a CHAIRO, signaling how HR and AI oversight are merging.
šļø Latest in HR News
šµ Destress Your Employees: An employee-first approach to financial wellness
š§āš¼ Southwest Airlines: What led to the first mass layoffs in 53 years?
š»ļø New Data: Racial disparities found in work-from-home arrangements
šŗ Too little, too late? Talent leaders say HR must be invited to the table sooner
ā Stopping āRevenge Quittingā: 5 Leadership Fixes
Employees are quitting in frustration over toxic workplaces and poor leadership, a trend known as revenge quitting. With trust in managers dropping to 29% and 71% of leaders reporting rising stress, experts warn that without major change, retention and morale will suffer.
To stop the cycle, leaders must adopt strategies that build trust, engagement, and purpose.
Key Takeaways
šØ Revenge quitting is on the rise: Employees are leaving abruptly due to toxic work environments, lack of trust, and poor leadership.
š§ Leaders must embrace vulnerability: 74% of leaders use self-reflection, proving that openness builds psychological safety and trust.
šÆ Purpose-driven work boosts retention: Employees lacking purpose are 4.8X more likely to quit within a yearāleaders must connect roles to impact.
š¤ Collaboration is key: 61% of leaders want to improve teamwork, yet only 41% feel theyāre effective at it today.
š Scaling People Analytics: What Leaders Need to Know
In this episode of the Digital HR Leaders podcast, Henrik Hawkinson, Global Head of People Analytics at Volvo Cars, shares his decade-long journey in the field, from basic reporting at Sony to leading strategic analytics functions at Delivery Hero and Volvo.
With AI and automation advancing rapidly, Henrik sees a future where people analytics is no longer reactive but a proactive driver of business success.
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Key Takeaways
š From reports to strategy: People analytics has shifted from metrics tracking to delivering insights that drive business decisions (4:12).
āļø Data quality is everything: Poor data leads to poor decisionsāgovernance and integrity must be top priorities (12:30).
š¤ Winning with stakeholders: Building relationships with senior leaders ensures analytics efforts gain traction and impact (21:45).
š Future-proofing with AI: AI-powered analytics will transform workforce planning, making organizations more agile and competitive (48:20).
Why It Matters
Leaders who embrace change are the ones that will thrive. Whether itās preventing toxic culture-driven resignations, integrating AI into HR, or navigating DEIās rebranding, the key to success lies in staying proactive and people-focused.
Organizations that fail to adapt are very likely to fall behind in this increasingly competitive landscape.
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Sophia Bennett
Editor-in-Chief
HR Insights Today
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