CHRO: Strategic Leader in Modern HR

What is the role of the chief HR officer?

With the rapid advancement of technology, the future of human resources is changing, and with it, the fundamental job of the chief human resources officer. When it comes to driving organizational performance through HR strategy, a successful chief human resources officer must be a genuine strategic advisor to their firm. This calls for a rare combination of skills, knowledge, and work history. As you pursue a career in human resources, what are the most important abilities you should cultivate? What makes these so important for the workplace of the future and for the present? Alright, let’s get started.

The function and duties of the chief human resource officer

An organization’s leader in human resources and culture is known as the Chief Human Resources Officer (CHRO). They hold a position of prominence within the company’s executive team.

The exact title could change from one industry to another and from one company’s size to another. This position also goes by the following names:

• Chief Talent Officer (CTO)
• Chief People Officer (CPO)
• VP of HR
• Head of People or Talent
• Chief of Talent or Culture

The following are the responsibilities of a Chief Human Resources Officer:

1. Lead the human resources division

Typically, the following staff members will be under the supervision of a chief human resources officer:

• Managers of HR
• People in charge of talent
• Supervisors of employee relations
• Records managers
• Managers of benefits
• Managers of training
• Advisors on compliance

The chief human resources officer is accountable for making sure the whole department is cooperating and functioning strategically. On a daily basis, they keep an eye on all of the crew’s work and initiatives.

2. Remain an integral component of the CEO’s strategic team

A chief human resources officer’s (CHRO’s) unique perspective on the workforce makes them an invaluable strategic partner to a chief executive officer (CEO), with whom they co-create company strategies. Peter Zaffino, CEO of insurance brokerage and risk management firm Marsh, frequently meets with his chief financial officer and chief human resources officer to review corporate strategy and make sure it lines up with strategic objectives.

3. Promote programs that teach new skills 

Generally speaking, a CHRO will be in charge of all endeavors related to training, recruiting talent, and career development. Among these are:

• Planning for professional advancement
• Developing plans for acquiring new talent
• Regularly assessing development and training programs to guarantee that the staff is prepared for the future.
• Verify that the company’s goals and the HR strategy are compatible.

Alignment between the HR strategy and the company strategy is crucial. A key responsibility of the chief human resources officer is to develop a data-driven plan that supports the company’s overarching goals.

Scania, a maker of commercial vehicles, shows how HR and business goals may work together by holding an annual “Climate Day,” when the whole company takes a one-hour break from work to participate in sustainability training. The company’s overarching goal is to “lead the move toward a sustainable transport system,” so this makes sense.

4. Foster an inclusive work environment

Promoting diversity and inclusion in the workplace through policy and practice should also be part of the chief human resources officer’s duties and responsibilities. Half of the companies surveyed by XpertHR put the responsibility for diversity, equity, and inclusion management on the chief human resources officer (CHRO). Eleven percent of organizations have a designated Chief Diversity Officer whose major responsibility is to manage diversity and inclusion programs.

Competencies of the Chief Human Resources Officer

To be successful in their current and future roles, CHROs need to hone a number of skills. While this is by no means an all-inclusive list, it should serve as a solid guide for you as you pursue your goal of becoming a chief human resources officer.

1. Business savvy

We have identified four fundamental competencies—business acumen, digital competence, data literacy, and people advocacy—as crucial for present and future success in human resources. An individual is considered a T-shaped HR professional when they have mastered all four of these abilities and one more functional HR competency. This is critical in assisting a company in reaching its goals.

An astute chief human resources officer (CHRO) knows the ins and outs of the company and can communicate effectively with upper management. They understand that HR and company strategy are inseparable. A leader with this kind of vision may plan the organization’s policies and objectives in a way that benefits everyone involved. As a result, the CHRO is better equipped to serve as an integral strategic partner to the CEO and make sure that HR initiatives are in line with business plans.

Chief Human Resources Officer Bettina Karsch brings business savvy to her position at Vodafone Germany by treating employee expenses like any other line item in the P&L. She explains that this proves HR is the engine that drives value, which in turn affects earnings. Adding P&L thinking to the CHRO post elevates its status, making it more appealing to individuals from different departments.

Strong business acumen is becoming more important when hiring CHROs, and candidates with credentials outside of HR are being considered more often. If you want to make smart, high-level judgments, you need to know how a company makes money.

2. Computer literacy

A worker with digital competence (or digital integration) is able to use technology to their advantage in human resources operations, which in turn boosts productivity at all levels of the company. This calls for familiarity with technological developments in and around the home as well as the office. In order to foster a digital-first culture, HR leaders must be able to incorporate it into the employee experience.

On occasion, the most tech-savvy workers may be located in lower-level departments. It is also the responsibility of the CHRO to spot this ability early on, nurture it, and then put it to use in the most appropriate positions. Over the course of a decade, Dow Chemical recruited more entrepreneurial Millennials and rethought its career paths to promote them to higher positions more quickly. This approach paid off.

Human resources departments nowadays are still overly preoccupied with administrative and payroll-related operational and transactional work. The revolutionary factor is the ongoing digitalization of all company operations. Because of this, we are able to automate an increasing number of our processes, which frees up resources and allows us to stop focusing on transactional duties and start creating value for our people and the firm. This makes us more agile and allows us to see where growth opportunities lie. In the future, there will be less functional differentiation and more fluidity. A sea change is coming to the HR department.

In today’s fast-paced HR environment, digital literacy is an essential talent for CHROs to ensure their staff is future-proof.

3. Literacy in data

While data collection is certainly important, HR professionals who aspire to advance in their careers would do well to hone their abilities in comprehending, interpreting, and applying the results of such analyses. This is the essence of being genuinely data literate.

At BBVA, a banking franchise in the United States, you can see this in action. According to the company’s analysis, their staff turnover rate was higher than normal in some critical positions when compared to comparable financial institutions. A more thorough examination of the data across regions, branches, and different demographics revealed that a single critical position accounted for 41% of total turnover, with 10% of their branches being responsible for this. This allowed them to zero in on particular branches specifically.

Using surveys of both current and former workers, they uncovered recurring complaints about the pay system, training, and onboarding. The turnover rate for that position dropped by 44% after they fixed all of these problems in the individual branches. As a result, the cost to employ went down and client relationships were better maintained.

4. Support for individuals

The fourth and last of the four fundamental HR skills is developing into an advocate for the people. Building the corporate culture, excelling as an HR professional, advocating with integrity and trust, and communicating effectively all fall under this category. The ability to effectively manage workplace diversity, equity, and inclusion depends heavily on this capability.

5. Skills for leadership

Being able to effectively lead the HR department is essential for a chief human resources officer (CHRO). On many occasions, they are the ones that hundreds of employees look to for guidance, wisdom, and motivation. It often takes a leader with a mix of knowledge, skills, and abilities to steer a company to success. Each sector, company, and position calls for a unique approach.

There are three distinct types of leadership competencies, according to SHRM (The Society for Human Resource Management):

• Skills for guiding the company
• Skills for effectively guiding a group
• Skills for guiding oneself

According to Deloitte, leadership is a combination of natural leadership potential and learnable skills.

6. Solving problems

An important skill for a CHRO is the ability to pinpoint issues, assess their severity, and come up with practical, workable remedies to enhance HR processes. For instance, by improving onboarding processes, training, or communication, these should have a good effect on the whole company and its workers.

This kind of proactive problem-solving shows commercial acumen and initiative, which is a great asset to any company’s HR department.

7. Psychological maturity

A high level of emotional intelligence is characterized by perceiving and responding appropriately to emotional cues from others and from one’s own emotional experiences. As part of this process, one must work on becoming more self-aware, self-regulating, internally motivated, empathic, and socially adept. The group HR Director of IMI, Geoff Tranfield, predicts that chief human resource officers (CHROs) will require a strong sense of emotional intelligence and the multicultural sensitivity to be able to connect genuinely and clearly with all aspects of what will be in many cases complicated global enterprises by the year 2025.

Possessing high levels of emotional intelligence is essential for successful communication and the capacity to connect with individuals at all levels of a company, from front-line workers to executives.

What does it take to become a Chief Human Resources Officer?

A chief human resources officer (CHRO) is generally considered to be the pinnacle of human resources (HR) careers. What can you do, though, to improve your chances of success when needs are always evolving?

If you want to be a successful chief human resources officer, here are a few things you can do:

1. Cultivate your skills in human resources

Make training, online learning, and coaching a daily part of your life to achieve the previously mentioned competencies.

2. Strengthen your capacity for leadership

Human resources professionals often fail to spend adequate time for self-improvement, which is a major oversight. HR strategist and Forbes Coaches Council member Ed Krow says that technical skills are still valued by teams and leaders in HR, but that leadership and communication are the abilities that will propel you to the next level.

To keep up with the competition and maintain your value in a dynamic job market, it is a good idea to create a strategy to improve your leadership abilities. One more option for enhancing one’s leadership abilities and mastery of HR fundamentals is to enroll in a leadership development program.

3. Get the credentials

Are you aware that almost half of chief human resources officers hold an HR certification?

Having a Bachelor’s, Master’s, or MBA is also a requirement for many CHROs. Applying for jobs using any of these can give you a huge leg up.

While not strictly necessary, having these credentials will increase your marketability to potential CHRO employers. Nearly one-third of human resources professionals hold a qualification, according to a PayScale poll. Furthermore, almost 50% of CHROs and VPs possess one.

4. Engage in ongoing education

Consider what you can do on a daily basis to improve your leadership abilities so that you can propel a company ahead. Keep up with HR and tech trend reading in business periodicals and online. Get out there and meet people from all walks of life at business events and conferences.

You should constantly be thinking about how current trends can influence your company in the future. That way, you can keep up with the latest trends in human resources, the workplace, and the company as a whole.

5. Expand your professional sphere of influence

In order to become a CHRO, it is crucial that you network with people from other firms and industries, as we’ve already discussed. In addition to facilitating the exploration of different viewpoints, it will also open opportunities for you. More than one-third of C-suite executives have gotten their current position through personal connections.

Besides going to events and conferences, another great way to meet new people is to use LinkedIn to connect with people you’re interested in getting to know better or to ask people you already know to introduce you.

Bear in mind that chief human resources officers (CHROs) do not follow a traditional career trajectory.

The typical path to become a chief human resources officer (CHRO) begins with a position as a recruiter or HR generalist. This path, however, is undergoing fast transformation. Rather than relying on their prior HR expertise, many modern CHROs bring their own leadership and business acumen to the table.

According to KPMG, many CHROs have backgrounds in areas such as general management, marketing, and finance before taking on this position.

Consequently, you shouldn’t worry about trying to pursue a specific career path that will lead you to the position of chief human resources officer (CHRO).

Questions for the Chief Human Resource Officer interview

Potential interview questions for the position of chief human resources officer (CHRO) might look something like this:

• To be successful, what are the most important traits of a chief human resources officer?
• Are you familiar with any HR management software?
• If you were in charge of our company, how would you go about creating an equal opportunity policy?
• Tell me something you’ve done recently to broaden your understanding of the CHRO role.
• Please describe an instance in which your input to upper management resulted in a positive outcome for your company or employer.
• Please describe a time when you had to deal with an unreasonable or otherwise challenging individual.
• Tell me about a benefit policy adjustment you made that helped your program stand out from the competition.
• In your opinion, how will technology change human resources in the coming decade?
• How would you respond if a high-ranking employee openly voiced their disapproval of your new policy?

Salary for a Chief Human Resource Officer

A chief human resources officer in the United States can expect to earn an average base income of $151,136 a year, according to PayScale. Keep in mind that this differs from one city or state to another.

Annual base wage rates in the US are as follows:

• State of New York: $217,842 annually.
• Los Angeles: $192,584 annually.
• Cincinnati: $150,000 annually.

To become a CHRO, one must be patient and dedicated.

Years of hard work, perseverance, and patience are required to reach the position of chief human resources officer. Becoming an effective and self-assured HR leader is a long and arduous journey, but the payoff will be substantial.