At a time when more and more companies are choosing to expand overseas, hire international employees (from different cultures or working environments) and manage distributed teams, the role of the Chief Human Resources Officer (CHRO) in an organization is becoming particularly essential.
This is because the company must act following a tailored human resources strategy (including talent acquisition, creating an organizational culture or providing development opportunities and other processes that build competitiveness in the eyes of employees). It is this very task the CHROs carry out in cooperation with the leaders of all major departments in the company. However, this is only a part of their duties. What else does the person in this position do?
Chief Human Resources Officer – table of contents:
- CHRO – one of the most important roles in the organization
- Human Resources Director – additional responsibilities
- What should the CHRO be like?
- CHRO Salary
- Chief Human Resources Officer – Summary
CHRO – one of the most important roles in the organization
The Chief Human Resources Officer (sometimes also referred to as a Chief Personnel Officer, CPO) is usually responsible to a company’s CEO or director, with an oversight role over all human resources processes taking place within the organization: from compliance with labor laws to creating training policies and retaining employees within the company for as long as possible.
It can therefore be concluded that the person in this position is responsible for developing a human resources management strategy that will both respond to the needs of employees and lead to the success and growth of the organization – as part of finding the “golden mean” between these two goals. After all, adopting the right strategy is the way to increase employee productivity and, consequently, improve the company’s performance.
Sometimes the role of the human resources director in a team becomes confused with the human resources manager. Thus, it is worth pointing out that the manager is usually only responsible for the area of recruitment and training, while the role of the director concerns many other areas related to employees and is strategic in terms of the company’s development. The Chief Human Resources Officer contributes to the success of the organization by constantly overseeing processes, looking for areas for improvement and adapting the company’s operations to market requirements or competitors’ offerings. He or she is also responsible for ensuring that all changes made to the company’s workforce are in line with the business strategy.
Human Resources Director – additional responsibilities
Formulating a strategy and HR policies that will support the company’s mission and vision is crucial, but not the only duty of the HR Director. Other responsibilities include:
- Exercising control over executive activities in managing talent acquisition and retention strategies,
- Conducting employee performance surveys,
- Developing remuneration and compensation and benefits policies that are competitive in the eyes of employees,
- Creating training and career development plans within each position in the company to maximize the level of utilization of employees’ skills,
- Handling employee complaints and taking part in disciplinary proceedings,
- Acting as an advisor to executives on effective leadership,
- Creating the company culture (conducting internal and external PR activities).
The Human Resources Director also engages in management succession processes within the organization. Sometimes, may get a say in such matters as the selection of board members or executive salaries.
What should the CHRO be like?
Given the breadth and significance of duties, HR directors should undoubtedly possess business experience gained in both administrative and management positions. It is also crucial to be well-versed in labor legislation, as well as up-to-date with all events and trends in the HR environment. What’s more, they have to demonstrate highly developed interpersonal skills to perfectly communicate with people and discover their expectations and needs (even the unconscious ones).
According to glassdoor, the total annual salary of a human resources director in the United States is typically in the range of $197K to $357K. The median, however, is $262,516 per year. CHROs may also receive additional compensation including, for example, cash bonuses, profit sharing or commissions. The estimate for such an allowance is $97,721 per year. Better yet, according to salary.com, the median salary for CHROs is $330,500/year.
Chief Human Resources Officer – Summary
Without a doubt, we can project that the importance of the Human Resources Director in an organization will only increase – especially in times when employees put great attention to more than the duties they perform or their salary. A properly developed human resources strategy implemented by all departments and overseen by the CHRO is a way to build the company’s competitiveness in the eyes of potential candidates, employees and other stakeholders (such as board members). As a result, the company can continue to grow and achieve the expected success.