Byron Clayton, CHRO at the world’s largest jewelry brand Pandora, is a keen proponent of this view: “The role has evolved to be much more strategic, and you have to constantly consider how you contribute to the overall goals of the organization.”
CHROs, says Clayton, must have a business-wide outlook and a clear view of their organization’s financial status. They must also understand their remit within overall company strategy.
Having previously held HR leadership positions at Nokia, Microsoft, AstraZeneca and IKEA, Clayton has seen a lot of high-level change over his career. “The function has evolved to work more with every other member of the leadership team,” he says. “We’re looking at the whole enterprise and trying to understand how we can solve problems, as opposed to just looking at our own area.”
This is the case for every C-suite leader, Clayton argues. because, in such a challenging operating landscape, there is a need to think more strategically. “Business is much more complex today, so we can’t afford to just work in silos. We’re so much more powerful as a team.”
But there has also been a rising recognition of the business imperative to ensure employee happiness. After all, the costs of replacing an individual worker can range from half to four times their annual salary.
For HR leaders, Clayton says, these changes mean they must “push the boundaries” of their remit and get out of their comfort zone. “I would advise any future CHROs that they have really got to understand how the financial numbers work inside their companies,” he adds.
While he admits that, at first glance, the financials can be intimidating, he insists that HR leaders need to “step up our game” by investing in personal development. He believes attending finance programs should be mandatory. “It’s not a valid excuse to say we don’t know the language. You need to learn it. You need to go back to school.”
Clayton also believes that aspiring CHROs should take all opportunities to broaden their knowledge on the job. He has spent time working in the finance department during the course of his career, and would recommend similar secondments or temporary assignments to any CHRO keen to broaden their experience and progress.
Today, Clayton attends every business review meeting that Pandora holds to make sure he has a complete picture of financial health across the business. He also invests several days a month in going through detailed market reviews.
“In the people community, we’re responsible for a very large budget and a very large amount of people, and we need to be stewards of that. We must make sure that our value creation can be quantified.”
“Considering the critical value that people bring to the business, one of Clayton’s key focus areas has been encouraging employees to build longer careers at Pandora.”
So, what does quantifying people’s value look like? Clayton points to Pandora’s frontline retail workers: “When the customers come in, we do what’s called assisted sales. We ask questions like, ‘What are you here for today? Who are you shopping for? Is it a special occasion?’ [With this special attention] the purchase means so much more to the customer.”
To make sure he fully relates to this frontline experience, Clayton spends several days a year working in stores. “I meet the customers and understand the products we have. I get this deep appreciation of what it means to work in store, and I’m always thinking about how I can make their jobs easier. You can’t understand the reality if you’re always just sitting in the boardroom.”
Considering the critical value that people bring to the business, one of Clayton’s key focus areas has been encouraging employees to build longer careers at Pandora. He has implemented more cross-training programs to help people continue their professional learning. “What everybody wants is development,” he says. “How are they growing? How are they becoming something better?”
Investing more in employee development brings added agility and adaptability. “By investing a lot more in the development of our people, we are also increasing our productivity.”
Clayton’s approach seems to be paying off, with the jewelry brand’s employee attrition rate dropping by 25% since 2022.
I'm not trying to be the CFO or the CEO. I'm the CHRO, and I'm damn proud of that. But if you want to be a business leader, you’ve got to act like a business leader.- Byron Clayton
Inclusivity is crucial, Clayton emphasizes. At a global organization such as Pandora, he is particularly aware of its impact: “We have 37,000 employees, most of whom do not have English as a first language. But we want everyone to feel included.”
This means prioritizing effective communication, from the CEO down, in language that everyone can understand. This includes minimizing the use of acronyms and specialist terminology. “Even when we do our global town halls, we’re extremely mindful of using straightforward language. Nobody’s going to get extra credit for pretending they’re a professor,” Clayton says.
Clayton believes being an effective CHRO comes down to balancing this deep understanding of employees’ day-to-day reality with the ability to speak confidently on every element of business strategy. It is also crucial to build trust and alignment with your fellow C-suite leaders.
“It’s about creating that bridge between being strategic, understanding the financial mechanisms of the company, and actually feeling the pain that our people have to deal with every day,” Clayton says.
“I’m not trying to be the CFO or the CEO. I’m the CHRO, and I’m damn proud of that. But if you want to be a business leader, you’ve got to act like a business leader.”
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