A CHRO, or Chief Human Resources Officer, is a C-level leader who is responsible for human resources. Although the position is not as well known as that of CEO, it’s an essential one. The CHRO is in charge of the people, who are the heart of any organization. 

Why Should a Company Consider Having a CHRO?

The role of CHRO is often under-appreciated at the C-level. Often, companies will have an HR director who reports to a member of the C-suite rather than an actual CHRO. However, having a Chief Human Resources Officer can have a major impact on the company.

A CHRO may have similar duties to an HR director but will have the authority to implement policies and changes that will have a strategic benefit to the company. By having a CHRO, companies can reduce the costs of hiring, allocate talent more effectively within the company, improve collaboration across departments, and cultivate leaders who can find creative solutions to problems as well as meet the organization’s goals. 

What Are the Key Roles of a Chief Human Resources Officer?

As the C-level representative and head of HR, the CHRO has a lot of responsibilities. CHROs can influence a company’s culture, implement policies to improve efficiency, and coordinating organization and development. They can also leverage the required human capital for meeting company goals. As recruiting top talent becomes more and more essential to staying competitive, having a CHRO can make a huge difference.

Creating Company Culture

Company culture can be the difference between retaining employees and having a high level of turnover. A Chief Human Resources Officer’s leadership can ensure that company culture embraces innovation, diversity, ethics, and values in order to encourage engagement, commitment, and a focus on customers.

The CHRO should provide clear guidelines and expectations to employees for behavior and performance. All employees will know where they stand and what is expected of them, which means that any violations can be unbiased and fair, complying with those guidelines.

Implementing Company Strategies

The world is constantly changing as business becomes increasingly globalized and more reliant on ever-improving technology. CHROs are responsible for ensuring that their companies are able to adapt. Implementing HR software is a part of the Chief Human Resources Officer’s position, but that’s only one piece of a much larger strategic puzzle.

The CHRO’s job is organizational development, which means monitoring the performances of different departments and their employees. After identifying areas that need improvement, CHROs can implement strategies and adapt policies and processes to keep the company competitive. The CHRO can ensure the business is operating as effectively and efficiently as possible.

Analyze Data and Patterns

Being able to review the reports and numbers to spot trends and make predictions is an increasingly necessary skill for a CHRO. Not only must the CHRO be able to understand the story that the numbers tell, he or she must also be able to figure out how to use that information to generate better results.

Prioritizing Recruitment

Talent is crucial to any organization. Recruitment is now candidate-centric, so every CHRO should know about sourcing, seeking passive candidates, and streamlining hiring team tactics to reduce time-to-hire. A CHRO should also have more specific ideas that relate to the company or location, however, such as when hiring needs are greatest and whether the organization will have to seek remote employees because of a lack of talent in the area.

Managing Talent

Your company is only as good as its employees. The CHRO is responsible for ensuring that the company hires top talent, but the job doesn’t end there. CHROs are also responsible for managing current talent, which involves succession planning and employee development. Developing employees’ skills is an essential part of company growth and prevents turnover.

What Are the Challenges of a CHRO?

Just like any position within an organization, there are challenges the CHRO must face. In addition to adapting the company to changes and keeping up with new technology, there are internal challenges for CHROs to overcome. Today’s CHRO must be proactive and play a more integrated role in the other core business imperatives to stay relevant and add value to the organization. The modern CHRO must adapt to the role changes that have been catalyzed by changes in technology, recruitment, and the overall way that businesses function in this era.

Advocating for Employees

To be effective, a CHRO must be vocal about what the employees need and what the hiring team needs to operate optimally. If top management is talking about opening a new location or expanding into a field that doesn’t seem feasible or profitable with the current structure and resources, the CHRO must speak up.

Uniting the Company

In order for everything that a CHRO does to be effective in the grand scheme of things, a united front is necessary. The mission must remain the same between departments and each department must have a comprehensive idea of their role in achieving that mission. Department heads must also have a pretty good understanding of how each piece fits into the puzzle, affecting one another and the mission.

Additionally, the CHRO must present the mission to the employees throughout the organization and garner engagement and commitment. It’s important to do research in order to figure out how to motivate each specific role and really drive their productivity towards the main mission.

Is your company looking for a HRIS to assist the CHRO and the HR department in their goals? MatcHR can match your company with the HRIS software vendor that will best meet your company’s needs. Get started by visiting our vendor match page.