When people hear “human resources” there are often negative reactions and experiences associated with the department. Not surprisingly, this also means that the role of Chief Human Resource Officer is often underappreciated and overlooked. However, the role of CHRO is one that can have a major influence on the organization.
Business leaders looking to create change in their organization should consider implementing the CHRO role. Besides the CEO, the CHRO is arguably one of the most strategic and impactful positions in the organization.
The role of the CHRO
CHRO is an executive level role that deals with managing human resources. Whereas HR traditionally deals with function-specific administrative tasks and talent management, the CHRO also deals with organizational development and implementing policies of change to improve the overall efficiency of the company.
This can be especially important when you have a global workforce spanning multiple markets around the world. Having a CHRO is key to implementing the company’s culture and coordinating the organizational development strategies and providing the proper human capital to hit organization goals. Critical in keeping the heartbeat of the organization healthy.
The strategic effect of the CHRO role is growing as the markets become ever more competitive when it comes to finding, hiring, and retaining top talent. Not only do CHROs need to concentrate on filling the talent pipeline with a pool of qualified candidates, they need to ensure that the company is able to train and develop that talent while also ensuring that they stay with the company. The focus also needs to be on providing an employee experience and company culture that will ensure long-term growth and future success.
An organization is only as good as the people working in it. No matter how good your product is or how many customers your sales bring, without the right people, you won't be as successful as you could be. Key roles in company need to be filled with the best talent and then trickle down into the rest of the organization.
The CHRO communicates and works closely with the CEO to fulfill their top priority: Talent Management. This includes identifying what talent is needed, recruiting and hiring candidates, and building the quality and depth of talent through succession planning and leadership/employee development.
Software like our own ProSky Pathways can help you know the roles in your organization better. You can create job requirements for current positions in the company as well as roles you don't even have yet. CHRO’s can then map out pathways and the software can compile an org chart. Help fill gaps that may appear with the ever-evolving work environments.
Globalization and Technology are rapidly changing working environments and affecting all types of industries. The CHRO is responsible for helping organizations adapt to these changes and adjust their business strategy to fit.
Many people believe that the CHRO is mostly in charge of managing different types of HR-related Software. Although implementing software might be a part of the role, CHRO’s should always remember that the purpose of software is only meant to be a tool to assist them with the most important part of their role: Organizational Development. CHRO is the main point of contact when it comes to gathering organizational data to assess the health of the organization, then using that information to improve the overall effectiveness of the organization. The CHRO is in charge of analyzing the performance of different departments and employees and implementing procedures to change the organization’s processes for the better.
As businesses become more globalized, strategy and roles need to be adjusted and talent moved around to allow the business to operate effectively across different departments, locations, and even cultures.
Having a clearly defined culture can assist with issues such as:
Ethics and Values
The CHRO plays an important leadership role in shaping the culture of the company. They should have a good grasp of the mood or personality of the company and ensure that employees know and understand the values and vision of the organization.
CHRO should be able to tell the CEO how employees feel about the company culture and workspace. (for example- 35 % of employees feel X about the company, 60% support using Y technology, 20% feel negatively about Z project). They should also be able to answer questions like - Do people understand their goals? What are the expected results from hitting these goals? Are there pathways aligned with to help achieve the goals?
The CHRO is also expected to provide employees with clear guidelines on expected behavior and levels of performance. This ensures that disciplinary action when an employee’s behavior does not comply with the values and culture of the organization is fair and unbiased.
Businesses spend millions of dollars hiring outside consultants to analyze their organizations for ways to improve efficiency. These consultants give actionable advice to improve this business strategy and tell C-level execs which departments need to be killed, which talent needs to be moved to what position, who are the top performers, etc.
These processes can actually be done within the company instead of spending the money on consulting. By having a CHRO and giving them the authority to make changes to improve the company, organizations can gain a significant strategic advantage over their competitors to create a successful business environment.
In summary, using the CHRO role properly will allow you to
Reduce hiring costs and time by categorizing different roles.
Allocate talent effectively within an organization and allowing more flexibility by adjusting job roles.
Cultivate leaders who can lead teams effectively and find creative solutions to achieve company goals.
Use employee engagement data to improve collaboration between different departments and global teams.