Chief human resource officers (CHRO) have always played an important role as they have the potential to make a difference in the organisation's performance and outcome. A CHRO designs and executes various talent management activities, learning and development programmes and various other HR strategies that cultivate and elevate the company's environment as well as its performance.
To know what is CHRO, one must understand the importance of human resources in a company. Previously, a chief human resource officer was purely considered an administrative position. However, with the evolution of the business world, it has developed into a position that performs various roles and responsibilities not limited to administration. A CHRO is an integral aspect that aids in making critical business decisions and developing innovative strategies.
Read on to learn ‘what is CHRO?’, what are its roles and responsibilities, and why it is so important for every organisation.
What is a Chief Human Resource Officer (CHRO)?
CHRO full form is the chief human resource officer responsible for building an effective workforce for the company. The CHRO is a crucial C-suite level employee in the HR department frequently seen in big-sized or moderate-sized businesses. CHRO, in some organisations, is also known as the vice president or VP of the HR division.
The CHRO heads the HR department and exercises complete control over the particular division. The CHRO decides how the HR department will function, what positions should be created, what the hierarchy will be, who will report to whom, what the chain of command will be, etc.
In recent years, this job position has also been popularly known as the Chief People Officer because the HR division established a greater priority on people or individuals. The role of CHRO is slowly transforming from an administrative position to a strategic business partner like the other C-suite executives like the CEO, CFO, etc.
CHRO Roles and Responsibilities
Every company needs a talented, effective, ambitious, skilled, and efficient workforce to achieve organisational goals and secure business targets. The head of human resources must use their extensive experience to help the company bring in, retain, and nurture its employees.
The following are the major roles and responsibilities of a chief human resource officer:
Talent management
Talent management is the overarching strategy every organisation adopts to manage their employees and cover various significant areas. Talent management includes various aspects that are mentioned as follows:
- Acquisition: A CHRO is an organisation's head of human resources and plays the most important part in hiring the right and most efficient people in the company. The HR recruits and retains the right employees for specific job roles.
- Onboarding: The CHRO has to onboard new employees and help them get accustomed to their new work environment. The process of onboarding includes informing the new employees about the company policies, rules, procedures, and culture. The human resource department also introduces them to the existing employees and gives them the proper tools and technology to perform their jobs effectively.
- Retention: They must formulate strategies that a company can implement to nurture and retain high-performing employees.
- Compensation and benefits: This includes salary and allowances, retirement, benefits, bonuses, holidays, vacations, and so on. Anything that acts as an incentive towards the employee, employee is included within this head. Hence, offering good incentives is also the responsibility of the human resource team.
- Training and development: Additionally, the CHRO is responsible for designing various training programmes to guide and nurture the employees and create a growth atmosphere within the company.
- Performance management: It includes keeping track of employee performance. This helps the human resource team develop programmes that help employees perform optimally in their current positions.
- Succession planning: Another important aspect of a CHRO's responsibilities is to identify and develop employees who can take on higher and critical job roles within the organisation. Only effective and competent employees are given this opportunity.
Employee experience
This includes everything that an employee has to deal with, starting from the time they start working for the company until retirement. Employee experience also means that people shall have proper access to the company's tools and technologies without any restrictions that will help them perform their duties effectively. It basically means fostering a positive work environment and allowing the employees to have a good work experience.
Workplace culture
This encompasses the company's work environment. It includes collective behaviour, exchange of thoughts, shared values, standards, and norms of behaviour practised within the company. The chief HR officer is responsible for building and maintaining a welcoming and positive work environment. A CHRO also looks after the various aspects that affect the organisation's working culture.
Regulatory compliance
A company needs to abide by certain laws and regulations. These regulations can be national standards or local, as well as industry-specific employment rules. The CHRO has the duty to oversee whether the company is adhering to such regulatory standards. These regulations include minimum wage standards, anti-discrimination policies, workplace safety, data privacy, medical assistance, and so on.
Change management
Establishing an organisational structure for companies and navigating through various changes when required is very important and is done by the head of human resources. The CHRO must ensure that the employees and the organisation as a whole are adaptable to changes. For this, various change management principles are applied in the required departments when commodities get more complex.
Change management is crucial for building an organisational structure that is adaptable to changes and has the potential to grow. Hence, it is a key responsibility of a CHRO to include change management within the organisation.
Human capital management (HCM) technology
The Chief HR officer has also started leveraging and working with newly developed technologies to present training and development. This improves the quality of programmes considered by the company to educate employees about new technologies. This helps the company be advanced and stay updated with new and effective technologies.
The HR division has started including these technological measures within the organisational framework. Such scientific inclusions help boost the utility of big data in managing employees.
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How to Become a CHRO?
To become a CHRO, one must have considerable years of experience in human resources. An aspiring CHRO should have experience and knowledge of working in various functional areas of human resources as it is a C-suite position where one needs to be a wise and informed decision-maker.
As per the report of the Talent Strategy Group released in 2021, 84% of CHROs and CPOs working at Fortune 200 companies have experience of at least 10 to 15 years in human resources.
Besides this one needs to fulfil the following criteria:
Have a diversity of experience
Generally, to become a CHRO, one needs to have a bachelor's degree in business administration in HR. For greater prospects, one can also possess a master's degree in HR. Additionally, to become a CHRO, one needs to have a diversity of experience in working in various matters such as employment analytics, finance, relations with the labour department, hiring personnel, leveraging operational efficiency, and so on.
To secure the role of CHRO in a company, individuals must inculcate creative knowledge and develop various competencies. They should also have soft skills like proper communication and interpersonal skills, as well as the ability to build better team relations.
Acquire leadership and social skills
A CHRO should be able to lead a team or a company as a whole. They should have confidence in themselves and instil confidence in their employees. They should know how to guide their team and deal with challenging situations properly.
It is the duty of the CHRO as a company leader to resolve any crisis the company is facing. They should know how to work with diverse people and solve any social or cultural issues. They may face challenges within the organisation. They must be able to handle sensitive circumstances.
Inculcate a greater understanding of business
The best CHRO knows how a business works and its important factors, along with the knowledge of human resources. An expert CHRO does not restrict his knowledge only to human resources but also expands his view towards the working structure and elements of a business, just like his other C-suite colleagues.
Business knowledge is important because it will help the head of human resources recruit, onboard, and retain employees whose work aligns with the company’s priorities. Additionally, business knowledge is important as it helps the CHRO work in collaboration with the CEO as a strategic advisor.
Build a strong network
Networking is one of the most important skills that every individual should build. More so, the top-level management needs to have a solid network to be aware of the new trends and people in the business forum. They can acquire a strong network by attending various HR events, speaking, and connecting with peers in that field, being a part of professional associations and clubs, etc.
One should make sure that their seniors and management get a glimpse of their ambition so that they can support them along the way. This will benefit both the employee and the company. The employee will climb up to a higher position, and the company will benefit from the output such individuals will generate.
Thrive and continue to learn
Constantly updating oneself has become a must in every field nowadays. A CHRO, too, should not be averse to learning and updating.
To become a CHR, one needs to be updated about the latest trends, industry, regulations, innovations, latest research, and accreditations. This also includes knowing the compensation levels, changing employment laws, advancing in HCM technology, staying up to date with the latest HR-related landmark judgements, and so on.
Qualifications and Skills of a CHRO
Although there isn’t a strict approach for turning into a CHRO, possessing the following credentials and capabilities is favoured:
- Having a master's degree in human resources or a degree in a related business field.
- Years of experience in diverse HR functional areas.
- Ability to manage individuals, teams and various types of projects.
- Considerable experience in leadership roles.
- Knowledge and experience in mergers and acquisitions.
- Strong communication and interpersonal skills.
- High emotional intelligence quotient.
- Data and digital literacy.
- Greater problem-solving capabilities.
- Ability to redefine and build a better work culture.
The Evolving Role of the CHRO
Previously considered an administrative role, a CHRO is now seen as a strategic advisor to the company. The COVID-19 pandemic also had some role to play in this evolution. During the lockdown, the chief of HR was responsible for running the company as operational while also looking after the safety and health of the employees.
The work-from-home arrangement was also quite challenging as it was very new for everyone. The HR department was responsible for making everyone accustomed to the new working structure, and various companies did it well. Work shortages and hiring freezes required a quick plan of action, which the HR successfully dealt with.
Nowadays, the CHRO also performs analytical roles, including predictive analysis, which is important for building skills across various departments within the organisation. The role has evolved, and it is still evolving. The position of a CHRO will become increasingly important in the coming years.
Summing Up
Chief human resource officers are under immense pressure to enhance the employee experience to retain outstanding performers despite shrinking talent and skills across all industries. HR handles employee performance, job planning, education and growth, parting the knowledge of new technologies, needs assessment, etc. The HR department within the company looks after every aspect related to the individuals working within the organisation.
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Frequently Asked Questions
- What is the key responsibility of an HR officer?
The main responsibility of the chief HR officer is to hire competent individuals in a company. Additionally, human resource officers are responsible for nurturing and retaining the existing employees. This will help the organisation to increase its overall productivity.
- What are the job requirements for a CHRO?
To become a CHRO, one is responsible for developing and executing human resource strategies that enhance the company's working structure. These strategies include succession planning, training and development, change management, etc.
- What is the role of CHRO today?
The CHRO is a strategic advisor that predominantly decides where to hire and whom to hire, assumes leadership roles in various areas, and deals with areas such as employment policies, compensation of employees and so on.
- Is CHRO a good position?
A CHRO is one of the most significant positions in a company, and one can only reach it if they have skills and experience in human resources. As one of the senior positions in a company, a CHRO enjoys an excellent salary and innumerable benefits.
