What Is the Major Focus of a CHRO or CPO?
When it comes to running a business, the roles of CHRO (Chief Human Resources Officer) and CPO (Chief People Officer) are critical. Both positions focus on managing an organization's human resources and share many similarities. In fact, the two roles are used interchangeably. A CPO at one company may perform essentially the same functions as a CHRO at another.
Historical Context and Evolution of HR Leadership Roles
Traditionally, the role of the CHRO has been central to the HR function. Originating in the mid-20th century, the CHRO role evolved to manage various aspects of human resources, such as recruitment, compensation, and benefits.
However, as the business environment has changed, so too have the demands on HR leaders. An increasing focus on company culture and employee experience is one of the most significant shifts. Additionally, CHROs are now seen as essential leaders in navigating organizational change. They are also more integrated within the corporate structure. For example, in 2000, only 30 percent of S&P 500 companies had their HR lead report directly to the CEO, compared to 98 percent in 2023, according to the Society for Human Resources Management (SHRM).
Major Roles and Responsibilities
A CHRO or CPO is a top executive responsible for overseeing an organization's human resources functions. This role typically focuses on aligning HR strategies with overall business goals to drive performance and efficiency. In addition, a CHRO or CPO focuses on the experience and wellbeing of the people within the organization. This part of the role includes enhancing the overall employee experience and fostering a positive organizational culture.
Typical Core Responsibilities
· Focus on Company Culture and Employee Experience: Developing programs and initiatives that promote a strong, cohesive culture that benefits employees and the organization as a whole.
· Talent Acquisition and Management: CHROs and CPOs are tasked with developing and implementing strategies to attract, retain, and develop top talent.
· Compensation and Benefits: Designing and managing competitive compensation packages and benefits programs.
· HR Policies and Procedures: Establishing and enforcing HR policies that support the organization's objectives.
· Leadership Development and Coaching: Investing in the growth and development of leadership within the organization.
· Organizational Development and Change Management: Guiding the organization through changes and ensuring smooth and beneficial transitions.
· Employee Engagement and Well-being: Implementing strategies to improve employee satisfaction, well-being, and engagement.
· Employee Relations: Ensuring the organization complies with labor laws and fostering positive employee relations.
Strategic Focus
CHROs and CPOs take the lead in aligning HR initiatives with the company's strategic direction. This includes workforce planning, succession planning, and leveraging HR analytics to inform decision-making. Real-world examples can be seen in large, global corporations, like IBM, where the CHRO typically plays a pivotal role in managing global talent strategies and ensuring the alignment of HR initiatives with business goals.
Culture is also a major priority for CHROs and CPOs—they play a prominent leading role in creating a strong, productive culture where employees can thrive. For example, CHROs or CPOs may lead diversity, equity, and inclusion (DEI) measures, oversee employee reward and recognition programs, and manage professional development opportunities. In the post-pandemic era, culture is an increasingly complex challenge because the workplace has changed. Many organizations are bringing employees back to the office after they’ve been totally remote, while others are allowing for hybrid or flexible work scheduling. HR leaders are key to implementing culture initiatives in this new, more heterogenous environment.
Why CHROs and CPOs Matter
A company that invests in its employees focuses on the future and ensures their long-term success. Understanding the importance of the CHRO and CPO roles can help companies stay competitive, attract top talent, and achieve long-term success.
Strategic Advantage
Companies with strong HR and people strategies are better positioned to attract and retain talent, maintain high levels of employee engagement, and drive sustained business success. An organizations is nothing without its people—so skilled CHROs and CPOs are invaluable for the overall health and business performance of any organization.
Adaptation to Workforce Expectations
As the workforce evolves, employees increasingly seek meaningful work experiences, a positive company culture, and opportunities for personal growth. CHROs and CPOs combine an operational focus with a strategic emphasis on culture and engagement, ensuring the organization adapts to these changing expectations.
Organizational Resilience
Organizations are facing an era of accelerated change right now, and CHROs and CPOs can be a deciding factor in their organization’s resilience. The advent of artificial intelligence (AI) and automation, the return to the office and its associated culture challenges, the skilled labor shortage, and the employee engagement crisis are just a few of the wider, society-level issues that organizations must contend with. HR leaders are on front lines of these complex challenges.
Takeaways and Key Considerations
Understanding the importance of CHROs and CPOs is crucial for modern organizations. These leaders help organizations navigate the complexities of the modern workforce, driving both performance and employee satisfaction. As businesses continue to evolve, recognizing the importance of these roles and effectively integrating them into the organizational structure will be key to achieving long-term success.