CHRO

Becoming a more strategic CHRO

People are every company’s greatest asset – and properly managing them should be one of the company’s top leadership priorities. With this in mind, many companies have created a new C-suite position in recent years: the CHRO (Chief Human Resources Officer).

In this article, we explore the role of the CHRO, explain why it is essential to a company’s success, and discuss what it takes to become a truly exceptional strategic CHRO.

What is a CHRO?

A chief human resources officer (CHRO) is a high-level executive in a company. He is responsible for leading the company’s human resources team and ensuring that human resources policies and strategies are aligned with the company’s mission and values.

Top-level CHROs also play a role in shaping and executing the company’s overall strategy. They serve as trusted advisors to the CEO and the rest of the C-suite, helping drive positive change within the company.

This typically occurs through HR initiatives, but CHROs are now also involved in many other aspects of the business and may work closely with the CFO, CIO and COO.

A CHRO is different from a human resources director, who is typically responsible for overseeing the company’s day-to-day human resources operations. As a member of the C-suite, the CHRO’s role is more senior and strategic. In some companies, the CHRO is also known as the Chief People Officer.

Why do organizations need CHROs?

Human resources has traditionally been viewed as an administrative or compliance-related function. In the eyes of the rest of the company, their purpose is to handle operational tasks such as administering benefits, processing payroll, and handling employee complaints.

But in recent years, human resources management has become a priority for companies, in large part due to the dramatic changes in the workplace since 2020. Today, HR is viewed more as a strategic function that plays a role in shaping the future of the company.

CHROs can help companies view HR from a more long-term, strategic perspective. Because they have a seat at the leadership table, they are able to influence the rest of the leadership team and ensure that they treat HR initiatives as a priority. A good CHRO can and should hold the leadership team accountable for the well-being, development and ultimate success of their employees – while helping the company achieve its goals.

What are the typical tasks of a CHRO?

Here are some of the most important tasks a CHRO takes on within a company:

Development and implementation of HR strategies

As the head of human resources, the CHRO is responsible for developing and implementing strategies that help the company get the best out of its employees. This can be done in collaboration with other key HR leaders, such as the HR director or other HR managers.

Aligning HR functions with corporate goals and advising the C-Suite

A central part of the HR manager’s role is to ensure that the company’s human resources strategies are aligned with the company’s overall mission and goals. They act as a liaison between HR and leadership and help ensure HR initiatives are seen as a priority.

Development and implementation of the organization’s talent strategy

CHROs are responsible for developing a talent strategy that helps their company achieve its goals. They do this by using data-driven insights to understand what skills their company needs most and finding innovative ways to find and attract talent with those skills.

Overseeing learning and development

CHROs are also tasked with overseeing the development and implementation of learning and development programs. While the details may be handled by the HR director or a dedicated L&D manager, the CHRO plays a critical role in determining the core strategy the company will pursue to help employees reach their full potential.

Supervision of HR employees

Although day-to-day operations are typically handled by an HR manager, the CHRO is responsible for overseeing the work of the various members of the HR team. It is also his job to provide employees with the tools, strategies and resources they need to effectively manage the company’s human resources tasks.

Management of corporate culture

CHROs play an important role in developing and maintaining a positive company culture. They can do this by implementing HR policies on topics such as benefits, employee recognition and engagement. You should also work with other stakeholders to ensure the workplace is as inclusive and equitable as possible. All of this helps to improve employee satisfaction, engagement and loyalty to the company.

What qualifications does a CHRO need?

CHROs are often human resources professionals who have worked their way up the ranks in human resources. This means they typically have management, conflict resolution, and empathy skills. However, CHROs are also senior members of a company’s leadership team, which requires other skills, such as: E.g. public speaking, business knowledge and data analysis.

Below are some of the core competencies a CHRO should have:

• Leadership and Management Skills: CHROs are senior executives within an organization. This means that they must be able to effectively inspire and motivate other people. They may also have to deal with other management tasks, such as: with resolving conflicts, dealing with complaints and even disciplining employees.

• Communication and Interpersonal Skills: CHROs must be able to communicate well so that they can effectively manage conflicts and issues that arise within the C-suite. Since their job is often to manage change within the company, they must also be able to communicate a compelling vision to employees and encourage them to work together towards a goal.

• Technology and data skills: CHROs should be able to track and understand various HR metrics so they can use them to advise the board and support decision-making. They should also be able to understand and analyze data related to other aspects of the business so that they can ensure that the company’s human resources strategies are aligned with other priorities.

• Strong business acumen: A great CHRO should have a strong understanding of the company they work for and the market in general. He must understand how the company works and how it delivers value to its stakeholders, including customers, business partners and employees. Only then can they truly link HR initiatives to the company’s core strategies.

What is the average salary of a CHRO?

According to Payscale, the average salary of a CHRO in the UK is £150,000 per year (as of May 2023). According to Glassdoor, the average is slightly lower, at £110,031 per year. In any case, a CHRO is a high-level position, meaning they will likely earn a high salary – typically in the six-figure range.

How do you become a strategic CHRO?

CHROs play a crucial role in every company. But with the rapid and significant workplace changes we have experienced in recent years, it is no longer just about linking people strategies to the company’s core mission.

During the pandemic, HR leaders have been tasked with facilitating remote work, keeping employees engaged, and helping them take care of their mental health. And in 2023, with both recruiting and retention a major challenge, people issues are increasingly seen as critical to business success.

This means that today’s CHROs play a much more strategic role. Human resources and HR policies are intertwined with other business priorities rather than being discussed separately. And for the first time, HR has a seat at the table.

Strategic thinking means looking into the future

Strategic-thinking CHROs need to think further than just the current needs of the company. They need to look into the future, identify trends, opportunities and threats and link these to their overall people, talent, learning and development strategies. This way, they can ensure their organization has access to the right people at the right time to drive business results and maximize the chances of success.

Likewise, truly effective CHROs must seek out promising talent within their organizations, identify future leaders, develop them through coaching and training, and connect them with the right opportunities.

Strategic CHROs also don’t limit themselves to discussions about human capital, but should also advise executives on business strategies, leadership styles, and more. Above all, they should be prepared to confront the CEO with uncomfortable views and hold him accountable for his decisions.

The strategic CHRO with technology

To accomplish all of these tasks, CHROs must be able to effectively use data and technology to drive change within their organizations. With the right tools, CHROs can gain the insights they need to more effectively connect talent to business outcomes. Technology is the key to building on the company’s existing talent, finding new employees and maximizing the potential of existing employees.

Additionally, HR software can save hours of administrative work for both the HR director and the entire HR team. This gives them the time they need to focus on projects and initiatives that drive the company forward.

The reason why companies need a human resources director is to link their human resources data and policies to overall company goals. With an effective HR software solution, they can accomplish this task without getting bogged down in administration.

One of the main concerns of a CHRO is balancing budgets and understanding HR software pricing, which should typically be linked to a tangible return on investment (ROI) for the company.