Why you must have a CHRO in your business?

In the wavering times of today, the responsibilities of the chief human resources officer (CHRO) has drastically witnessed a shift. Besides this, it has become exceedingly mandatory to employ a CHRO in the Human Resources Department. This is to keep vigilance on the plethora of duties that fall within the HR domain. 

With the new trends in the corporate and business sector, the need for all CHROs calls to step up their game. 

Being the head of the human resource department, a CHRO must plan two steps ahead. This along with a lot of other effective practices come together to efficiently hire and manage the workforce.

All businesses most definitely need a chief human resources officer to hold the reigns, take charge and steer the company towards progress. 

CHRO Meaning

Where the need to hire talent has become the sole agenda, most companies and business houses have begun to shelter a full-fledged HR Department. Here, the HR department is erected in isolation and is looked as having administrative or compliance functions. More often than not, the demand for an effective HR head or officer is not met. This gives birth to a non-integrated and standalone HR department; mostly directionless and unsynchronized. 

As per Korn Ferry’s Global Human Resources Officers survey of 193 Chief Human Resource Officers (CHROs),

24% or one-quarter find their role not being given its due importance. Especially in the formulation of the firm’s annual strategy, 24% of the CHROs feel left out. 

Joseph McCabe, Vice Chairperson of Korn Ferry Global Human Resource Centre of Expertise is of the opinion that, “How to work within organizations is being done is rapidly changing. And as agile work teams continue to develop, it will have a huge impact on accessing talent with the right skills for an organization’s needs. It’s critical that CHROs are involved in looking at the future of their organization’s workforce during strategy development,”

Ergo, the need for an HR department to be directed by an efficacious CHRO is a requisite. 

Functions of a CHRO

To simply wind up the responsibilities that an HR department undertakes will entail, managing and recruiting the best talent, alongside implementing and seamlessly curating effective strategies by staying in line with the company guidelines. Moreover, HR personnel has to look into creating a conducive environment that boosts productivity, whilst keeping in mind the concerns and demands of the employees. The managerial skills of any HR department have to be excellent so the vision and goals are met. Not only this, the conventional responsibilities of managing payroll, analysing employee performance, communicating the company’s goals, along with training and retention, add into the job description of an HR. 

To take forward all the above listed crucial tasks, it becomes necessary that the HR department and all those working for it are wound together and given a direction. Here it becomes obligatory to bring in a CHRO. 

A common trend found in companies in the presence of a VP or an HR director leading the HR department. Malpractice here is the absence of a Chief Human Resource Person. It weaves a highly confusing web of job responsibilities when the CFO and COO interfere in directing people. 

To avoid these fundamental mistakes, the presence of a CHRO in business is essential. 

A Chief Human Resources Officer will diligently execute all the following responsibilities whilst maintaining the integrity of the HR department.

• Strategizing
• Communication and Feedback
• Manage Talent and Capital
• Making Predictions and Using Data
• Employing Agility 
• Practising Flexibility
• Erecting Organisational Structure
• Avantgarde Work Environments
• Allocating Capital and Sound Acumens.

Let us understand in detail.

Strategizing

The Chief Human Resource Officer resides in the position where his vital role involves effective strategizing. The role of CHRO is the most strategic role in the company or business. Their pragmatic and feasible strategizing stems from their careful study of company ethics, goals, financials/budget and projects. He will think strategically while keeping the goals, plans and visions of the business in view. A CHRO will devise and string together a bunch of working strategies, albeit prioritizing them as per the demand. 

He is to aid the leaders of the company to make informed decisions appertaining to the constructive feedback they deliver. The success of effective leadership depends on the CHRO. 

As the management sage Peter Drucker said,

“Culture Eats Strategy for Breakfast”,

The corporate sectors can absolutely profit from the presence of someone as competent as a CHRO. 

What a CHRO brings to the table is laying out robust policymaking. Strategizing is synonymous to a CHRO’s job.

Communication and Feedback

These make the crux of any business in this digital, automated age of today too. With online feedback forums and ease of communication, some may not feel the absolute presence of a Chief Human Resource Officer (CHRO). But companies and businesses can benefit from the feedback and inspection of a CHRO. This person can judiciously manage all employee queries and ascertain that company ethics and values are being pursued. 

Apart from this, a CHRO serves as the eyes and ears of the company. He/she is the medium to convey any and all requests, concerns and popular workforce emotions, while explaining the challenges faced, if any. 

Since all company partners, chairman and CEOs cannot directly scrutinize every minute activity of the company, it is the CHRO who delivers such feedback.  

Yet another trait of a CHRO is to maintain emotional intelligence. This comprises of both interpersonal and intrapersonal skills. An emotionally level headed leader of the Human Resource Department will carry forward his leadership duties with par excellence.

Manage Talent and Capital

The fundamental yet exceedingly necessary task that all CHROs are to execute comprise of, finding the right talent. Hunting down the perfect talent and moulding them as per the company requirements is the biggest assistance that a chief human resources officer can supply a CEO with. 

Management of human capital, planning and strategizing accordingly will increase sustainability and boost productive plus desired output. Here, smooth and unobstructed communication renders useful. A clear to and fro of instructions, better if in writing, will help both the CEO and CHRO to understand each other.

Making Predictions and Using Data

A company or business always runs in accordance with long term plans (mostly three to five years). Such plans are put together by the CFOs and CEOs. These plans and visions when communicated seamlessly will render useful to the CHRO in making strategies.

Consequently, it would become possible to make accurate predictions. A company or business is to find the perfect balance between the job requirement and talent. A CHRO looks over, crystallizes and perfectly allocates the best person. After all, it is the employment of the best person in the finest place.

Here data analytics, when brought to use, will prove utterly useful. With the help of advanced tools, infused with artificial intelligence, the CHROs of today can easily fine-tune the workings of the institution. Not only this, he/she can trace performance gaps, organizational voids, solve any issues sticking out and make informed decisions. The HR departments of today make judicial use of data and HR analytics tools.

As per a survey, somewhere around 97% of the respondents agreed to have collected HR data. The significance of HR data cannot be undermined. It guides the HR department and the CHRO to come to conclusive ends, make improved usage of human capital and financials while working smart to attain the company goals and employee satisfaction. The responsibility that the chief human resource officer has to execute is to comprehend HR analytics, find the sources and resolve all shortcomings in the process.

Employing Agility 

Quick decisions and backup plans are a forte of an assiduous chief human resources officer. The major aspect of their responsibility is to predict and build a course in case of any disruptions. It is not always that planning proceeds in a linear manner. 

In this case, a CHRO resides and looks over any disruptions which are influential enough to impact the business model. A key skill here is to make quick decisions in crisis with agility. To synchronize with any tectonic shift in the business or the corporate sector, it becomes essential that a CHRO is able to spot threats and make necessary amends to adjust to it. It becomes vital here, that a certain level of foresight and resilience are brought to use. When a CHRO is able to practice agility; business becomes secured against sudden disruptions. 

It grows as a constructive practice where a CHRO continuously prompts the company leaders to learn, change and adapt. All C-suite, those leading the company can easily learn and develop such skills of agility in the guidance of a CHRO.

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Practising Flexibility

A CHRO makes use of his fine management and predictive skills, to erect such strategies that can be manipulated according to the changing scenarios. Building flexible models by keeping a lookout for all possibilities, is what makes a good CHRO. It proves beneficial to hire such professionals with a sound awareness of the market demands and fluctuations. On the HR radar, the requirement of a CHRO has magnified more than ever. In 2022, where each business move ought to be deeply studied, the presence of a Chief Human Resource Officer greatly reduces the risks involved.

Erecting Organisational Structure

A pretty basic responsibility of each person in the HR department is to look into the organizational structure. It is the core unit of functionality. An organizational structure should be such that all teams with their members and projects should go hand in hand with business goals. These basic yet mandatory requirements call for a Chief Human  Resource Officer (CHRO). They must be able to efficiently solve any problems in the business’ organisational structure. This will ensure easy implementation of policies so that the organisation can reap profit from agility. 

Erecting organizational structure points out to the function of a CHRO to assemble working teams, assigning them projects, look for gaps, redeploying people and getting a grip on deadlines. 

In 2022 where business and corporate sector is governed by a gig economy, an organization structure as flexible and agile is bound to excel. When each move is to be manipulated as per the customer’s demand; there arises a need for an individual who can study such complex structures and remodel them. Here the business seeks a CHRO.

Avantgarde Work Environments

2022 calls for an even more modified work environment. Here the employees feel the need to experience a certain level of freedom and individuality. Gone are the days when workers used to lug around a suitcase 6 days a week. Enhanced, trend-setting changes in HR technologies and change in work culture have made it possible to work virtually. Collaboration while connecting with all departments acts as a major link. 

The need for a chief human resource officer arises here. 

A professional like such will be able to come up with possible solutions pertaining to changing workspace environments. The expertise of a CHRO in such a scenario will increase collaboration, engagement and output.  Originally, non-conventional for a CHRO role, these professionals must develop such a skill set for optimum results to boost their businesses in 2022.

Allocating Capital and Sound Acumens

Majority of decisions pertaining to capital and finances fall in the CHRO’s domain. Formation of malleable policies, that employ human capital in the best possible manner and in alignment with business, demands an expert chief human resource officer. Matters of employee engagement, retention are tasks common to a CHRO and the human resources department as a whole. 

But the know-how of the intricacies of these processes can only be overseen by a CHRO. 

As per the company goals and demands, the allocation of human capital and making sound acumen will only become feasible when enough analysis and study goes into it. The need to manage workforce by harnessing talent pipeline along is a major business goal accomplished by a chief human resources officer. 

The above-listed qualities and traits make up a CHRO of today. All in all, a chief human resources officer monitors the functioning and manages the human resource department; it’s operations, policies and practices. 

According to Alan Guarino, Vice Chairman- CEO and Board Services at Korn Ferry,

“Next-generation CHROs will perform like the CEO of an HR solutions company, enabling human capital solutions for their company.

They are not administering programs. They are creating impact and a return on the money invested in the company’s talent systems.” 

Being the chief human resource officer is heralded as the most powerful and influential position in the business. It also comes along with the above-listed liabilities. For the same, training and experience is mandatory; since most Chief Human Resource personnel do not belong to an HR background.

The need for A CHRO

Every business requires a chief human resource officer in the HR department. In these ever-changing times, this has become an urgent necessity. The businesses that are surfacing in 2022, are in dire need of a road map to efficient management. This can be obtained only with the presence of a managing head and leader of the HR department. The presence of a chief human resources officer will supply a window that the C-suites can make use of.  The DNA of a successful business is made up of happy, talented and satisfied employees. Any and all policies and strategizing that leads towards this is the task of the CHRO. 

The need for a leader to head the HR department will steer the business as per its goals, visions and ethics. Not only this, the analysis and approach needed to succeed will come from the presence of an experienced and meticulous chief human resource officer.

Conclusion

Hiring a CHRO who will competently lead the business and the Human Resource Department is an asset.  This will not merely ensure that the HR personnel are executing their respective responsibilities but will also make sure that the CEOs and COOs get timely feedback. This feedback of the employees and the operations can largely be utilized. More importantly, a healthy culture for the workforce and mandatory policy amends can be put into action. By managing and balancing both the long term and short term goals, with the business structure and it’s human capital; the presence of a chief human resource officer becomes imperative.