Chief People Officer
What is the role of a Chief People Officer [CPO] ?
A decade ago, most companies didn’t know what a hiring manager was, let alone felt the need to have one. But especially in recent years, the role and status of the HR department has changed dramatically. Now your team needs a CPO at the helm.
But why? What led to this relatively sudden change? Part of this has to do with evolving technologies, the economic environment and changing employee needs. In this article, we introduce and explain the changing role of today’s top hiring managers.
What is a Chief People Officer?
A chief people officer (CPO) is an executive-level position responsible for overseeing a company’s people and talent functions. A CPO is responsible for all aspects of human resources and takes care of hiring, onboarding, managing, developing and retaining employees.
What are the responsibilities of a Chief People Officer?
The need for a CPO has increased as companies increasingly face challenges that require flexibility and effective communication with their employees. The role of the CPO can vary depending on the challenges of each company, but often includes the following tasks:
- Acquisition of talent
Develop strategies to attract and hire top talent and ensure the company has the right people in the right positions.
- Training and development.
Improving the skills of the existing workforce and ensuring programs promote career development and identify talent for promotion opportunities.
- Performance management
Improving the skills of the existing workforce and ensuring programs promote career development and identify talent for promotion opportunities.
- Relationships with employees.
Ensure programs are in place to promote communication with employees and resolve conflicts.
- Pay and benefits.
Creating and managing compensation and benefits systems that ensure the organization is competitive in the talent market.
- Diversity and inclusion
Develops and implements programs to promote an inclusive and equitable workplace. Measures existing programs for effectiveness and employee trust.
- Corporate culture.
Shapes corporate culture to align with company values, mission and goals. Often oversees or influences community and social programs aimed at improving the company’s public image on social and environmental issues.
- Legal compliance.
Ensures company compliance with employment regulations and recommends training and education initiatives to ensure employee and supervisor compliance.
What is the difference between a CHRO and a CPO?
A chief human resource officer (CHRO) is an older title that focuses heavily on leading decisions about human resources policies and processes. Chief People Officer (CPO) is a newer term that has evolved from companies’ recognition of the need for a bridge between the workforce and executive decision-making.
The move toward CPOs has been driven by fears of a talent shortage. According to a recent report from Korn Ferry, more than 85 million jobs could be affected by a skilled labor shortage by 2030. Companies turn to CPOs to find ways to ensure their company has the talent it needs well into the future. CPOs help identify and retain top talent by fostering better workplace experiences for employees and strengthening programs that reward top performers.
A CPO is sometimes viewed as an expanded version of the CHRO because companies today place great emphasis on attracting and retaining talent. Companies with a CPO view this position as a highly relevant executive rather than a reporting role in a service department.
What is the role of a Chief People Officer in the UK?
Chief People Officers in the UK face many of the same challenges as elsewhere in the world, but also have to overcome some unique obstacles. It is vital that CPOs recognize the unique talent challenges facing organizations across the UK and do not attempt to apply a one-size-fits-all approach across multiple regions.
Covid-19 continues to impact businesses across the UK. CPOs must grapple with rapidly changing workforce expectations around remote and hybrid work. As a voice between employees and management, CPOs are able to suggest strategies that increase productivity without alienating valuable talent.
In the UK, Brexit and changing immigration policies are also an important issue for CPOs. Employers need to keep an eye on their staffing needs across the organization and ensure they have viable strategies in place to avoid shortages. CPOs are in a unique position to track workforce changes and develop talent strategies.
Industrial relations have also returned to the UK employment landscape to a degree not seen for many years. This has made knowledge of industrial relations strategies essential for CPOs in various industries.
Finally, CPOs in the UK help companies address the lack of required skills and experience among entry-level professionals. University students in the UK missed out on valuable apprenticeships and early career training opportunities during the Covid-19 shutdown. As a result, 45% of students and graduates in a Prospects survey said they felt unprepared for the world of work.
The gap in work experience and overall workplace preparation has led to UK employers taking more responsibility for training and development. CPOs are addressing this challenge by rethinking the work experience requirements for filling specific positions and developing robust onboarding and training strategies to close the gap.
What organizational challenges can a CPO help with?
CPOs are increasingly at the forefront of addressing organizational challenges. Companies that expand the role of the CPO can benefit from strategic insights into how their workforce is embracing change and how to position the company to thrive.
As many companies look to bring employees back to the office or transition to hybrid work models, CPOs are best positioned to measure and report on the impact of these changes. A capable CPO will use these measures to develop flexible HR strategies that address the diverse needs and preferences of the company’s workforce.
The places where employees work are changing, but so is the way in which employees work. New technologies such as artificial intelligence (AI) are quickly finding their way into the world of work across departments. CPOs can lead initiatives to upskill employees and ensure smooth and reliable integration of AI, while addressing concerns about original work and job displacement.
CPOs can also advocate for issues that are important to employees and the community. CPOs often lead environmental, social and governance (ESG) programs that impact the company’s reputation for corporate responsibility. Building a reputation for corporate responsibility makes it easier for companies to attract talent and customers.
What is the relationship between the CEO and the CPO?
Chief people officers are trusted advisors who often have a close relationship with the CEO. Since Covid-19 changed the world of work, HR has been constantly on task to manage changing business needs and employee expectations. During this time, CPOs have assumed an increasingly trusted and valuable strategic position.
The valued relationship between CPOs and CEOs has led to more CPOs than ever being considered for CEO succession. For CPOs to continue to provide value, it is critical that they communicate clearly with CEOs and maintain trust.
What do CPOs need to be successful?
As with other C-suite positions, a CPO requires a wide range of skills. A good CPO typically has more than 10 years of experience in human resources or business management and brings HR expertise, business knowledge and soft skills such as emotional intelligence and problem-solving ability.
CPOs rely on business insights and analytics to make their recommendations. Even the most talented CPO will fail if they have to react blindly without the benefit of quality reporting. IceHrm’s HR analytics take the guesswork out of your business and empower your CPO to make data-driven decisions and recommend strategies that are based on the actual circumstances in your company.
On a practical level, a CPO needs to be equipped with streamlined HR practices that ensure their HR team doesn’t waste time responding to basic queries. With IceHrm’s automated HR delivery system, HR teams have the bandwidth to work on strategic initiatives instead of repetitive tasks.