CHRO Confidence

CHRO confidence remained near record high in Q2, despite edging down from the previous quarter. That’s according to the latest survey of US chief human resource officers (CHROs) from The Conference Board.

The survey also reveals that organizations continue to maintain positive hiring expectations, although workforce growth is becoming more selective and concentrated in critical roles.

The CHRO Confidence Index declined by one point to 58 in Q2 from a series high of 59 in Q1. (A reading above 50 reflects more positive than negative responses.) While confidence around hiring eased modestly, expectations for employee retention and engagement remained steady.

"Companies still recognize that their talent is a key competitive advantage, but they're being much more intentional about where they add headcount," said Diana Scott, US Human Capital Center Leader, The Conference Board. "The message from CHROs is clear: They're optimistic about hiring, engagement, and retention, but they're pursuing hiring with a careful eye on costs and changing business needs."

Conducted among 111 CHROs, highlights from the Q2 survey include:

Hiring: Do HR leaders expect to hire more employees in the next six months?

The CHRO Confidence Index: Hiring component was 59 in Q2, down from 63 in Q1.

Hiring expectations remain positive despite moderating from the prior quarter.

• 54% expect to increase hiring over the next six months, down from 59% in Q1.
• 17% expect to decrease hiring over the same period, stable from Q1.

Workforce expansion is expected to remain modest overall.

• 55% expect their organization's total workforce size to increase moderately over the next six months.
• 23% expect workforce levels to remain unchanged.
• 22% anticipate moderate workforce reductions.

Among organizations planning to increase hiring, most are focused on specific roles.

• 75% said hiring is concentrated in specific roles or functions.
• 27% said they are primarily backfilling existing positions.
• 25% described hiring as broad-based across the organization.
• 25% said they are creating new roles.

Hiring growth is concentrated in operational and mid-level talent.

• 65% said hiring increases are focused on frontline or operational roles.
• 55% said hiring is concentrated in mid-level positions.
• 30% are hiring for entry-level positions.
• Only 15% cited senior leadership roles and 3% cited executive roles.

Talent acquisition challenges continue.

• 51% of CHROs said finding qualified talent is somewhat difficult.
• 5% described it as very difficult.
• Only 20% said finding talent is somewhat easy.

Hiring specialized talent remains the greatest challenge.

• 71% cited specialized or technical roles as the most difficult positions to fill.
• 35% cited mid-level manager roles.
• 30% cited leadership or executive positions.
• Only 11% identified early-career or entry-level roles as their biggest hiring challenge.

Financial caution outweighs AI as a driver of hiring reductions. Among organizations planning to reduce hiring:

• 53% cited financial challenges or anticipated business risk.
• 26% cited reductions in funding.
• 26% cited workforce adjustments following prior growth.
• Only 21% pointed to role elimination due to automation or AI.

"Our research underscores that the biggest talent challenge is finding people with the right skills, especially as technology reshapes work," said Robin Erickson, PhD, Head of Human Capital Research, The Conference Board. "With skill requirements evolving faster than talent pipelines, organizations will need to look beyond recruiting and invest more aggressively in internal development, reskilling, and career mobility."

Retention: Do HR leaders expect employees to stay over the next six months?

The CHRO Confidence Index: Retention component remained at 55 in Q2 2026.

Retention expectations remain stable.

• 36% of CHROs expect employee retention to improve, up slightly from 34% in Q1 2026.
• 19% expect retention to decline over the next six months, stable from Q1 2026.

Engagement: Do HR leaders expect their employees to be committed, motivated, and connected to their work and the organization over the next six months?

The CHRO Confidence Index: Engagement component was 59 in Q2 2026, down slightly from 60 in Q1 2026.

Employee engagement expectations remain above average.

• 46% expect engagement levels to increase, down from 53% in Q1.
• 16% expect engagement levels to decrease, down from 21% in Q1.

About The Conference Board

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