A Chief Human Resources Officer refers to the head of human resources in an organisation. They oversee all aspects of human resource management and labour relations, as well as related policies, methods and procedures, as a management executive.
Some companies also refer to this position as CPO - Chief People Officer, but the role of the CPO is different. CPOs are focused on human capital in the form of ensuring that they attract the best talent and then retain them for as long as possible. The work of CHROs covers the entire life cycle of employees and is far more comprehensive.
It involves overall human resource management, a work culture with a focus on the employee experience, and looking at HR from a strategic and long-term perspective.
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A human resources director was not taken for granted in companies in the past. And this even though companies have long known that their employees are their most valuable asset. Today, CHROs have become the focus of management. After all, modern CHROs manage comprehensive cultural and corporate transformation. Some have even risen to become CEOs in the process.
That is because their strategic role has also expanded. Through general progress and technologisation, the workforce is increasingly composed of knowledge workers. And these mostly highly qualified workers are becoming scarce.
Alongside HR issues and services, strong talent pools and pipelines need to be constructed to safeguard both crisis and future growth. Changes in the business landscape and the way we work require CHROs to focus on talent, skills and culture.
That is where the role of a CHRO is particularly valuable when it comes to talent management, corporate culture and the strategic focus of recruitment. These areas become key when it comes to achieving key business objectives and must be appropriately aligned with people management.
Therefore, CHROs focus on the big picture and set the direction of essential HR functions by adding an external perspective. This perspective is a profound understanding of the market dynamics and an analysis of the competition.
In the traditional sense of an HR department, it is the HR team's job to take care of the administrative functions. But modern technologies and a data-driven approach complement this department and function.
Artificial intelligence and automation are radically changing the world of work. They are causing both jobs to be eliminated and new ones to be created. The competitive pressure to attract the best talent is rising all the more.
Companies that develop environments and workplaces where people love to work will be able to compete in this fast-approaching future. And only a CHRO can bring this strategic perspective to the management level.
CEOs have known about the human capital challenge for some time, and a CHRO is the most likely to solve this recruitment challenge permanently and strategically.
Overall, the role of CHROs has evolved and plays a central role among companies in many sectors. New skills and competencies are needed to advance the goals of an organisation.
It can be expressed as follows: The role of modern CHROs is to unlock both human capital and potential. To fulfil this role, the following characteristics and skills are required:
An excellent CHRO has an overview of all parts of his or her company and knows exactly how they need to work together to achieve the greatest success. Furthermore, CHROs should not only know the competitive environment, but also the needs of customers and business-relevant software and technologies. For a strategic overview, the product or service roadmap is also part of the picture.
As CHROs, the key task is of course to build a capable team and workforce that both understands the goals and vision of the organisation and knows how to achieve them. Because good CHROs know that for the company to succeed, the right people must carry out the right tasks.
Corporate culture plays a major role for new potential talents. Cultural fit is becoming more and more important in recruiting, and you don't attract the best candidates with an ill-conceived corporate culture. A culture includes the right strategy and programmes to attract, promote, reward and ultimately retain skilled workers in the long term.
The very nature of the role of HR management is to build trusting relationships with people within one's organisation. That trust is built across different departments. This provides CHROs with information that they can use to improve the organisation and also enables them to make smarter decisions for the future.
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