Why Every CEO Needs a Strategic CHRO by Their Side

In 2023, India’s attrition rate was above 18%, somewhat down from 2022 (1). It was still a matter of concern. In fact, companies are facing substantial challenges in retaining top talent. This is where a CHRO role becomes important. In fact, a strategic CHRO not only addresses retention, but also links talent management to long-term company objectives. In this blog, we look at how a CHRO’s growing duties affect corporate growth and how leadership programmes can help HR professionals thrive in this high-stakes environment. But first, let’s take a look at what a CHRO is.
What is a CHRO?
A Chief Human Resources Officer (CHRO) is a senior-level executive tasked with managing an organization’s human resource strategy. The CHRO role goes well beyond conventional HR responsibilities, emphasizing the alignment of employee skills with organizational goals. Additionally, this strategic leader influences talent acquisition, employee involvement, and workforce development programmes. At the same time, a CHRO also guarantees that the company culture promotes innovation and inclusivity.
Moreover, CHROs frequently play an important role in initiating organizational change, handling crises, and addressing intricate workforce issues like retention and hybrid work arrangements. They utilize data-based insights to enhance decision-making and guarantee the company stays competitive in drawing top talent.
Integral to company growth is the strong collaborative relationship between a CHRO and a CEO. They work together to create strategies that look at building a robust network of personnel, processes, and performance. Ultimately, the CHRO plays a key role in fostering a workforce that embraces change.
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Why Human Resources is a CEO’s Greatest Asset
1. Drives Business Growth
Employees implement the organization’s vision and achieve outcomes. Their creativity, abilities, and innovation directly drive organizational growth. As a result, a strong leader in the CHRO role ensures talent strategies align with business goals.
2. Influences Organizational Culture
Culture shapes how employees interact, work together, and achieve results. In fact, the CHRO role prioritizes developing a positive culture, thus leading to drawing in, and retaining, high-quality talent.
3. Fosters Creativity
Diverse teams develop fresh ideas. A leader in the CHRO role, therefore, stresses on the importance of inclusion. As a result, it allows employees to express their individual perspectives.
4. Promotes Leadership Growth
A healthy leadership pipeline guarantees ongoing growth. Hence, CHROs identify and develop upcoming leaders to propel the organization forward.
5. Improves Employee Retention
Faithful employees also lower recruitment expenses and uphold stability. HR rules set by a CHRO promote employee satisfaction.
6. Aligns Individuals with Strategy
A competent team successfully carries out the CEO’s vision. As a result, the CHRO ensures that personnel strategies completely correspond with organizational goals.
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Skills Needed for a CHRO
1. Strategic Thinking
For CHROs to succeed, workforce strategies need to be aligned with business objectives. Consequently, they need to foresee obstacles and develop proactive measures to guarantee success.
2. Data-Driven Decision-Making
In the current environment, to be effective in a CHRO role, one requires to be proficient in data analytics. Analyzing and using data, after all, can enhance employee efficiency.
3. Leadership and Influence
To lead successfully, CHROs need to foster trust and promote unity. Furthermore, they play a part in affecting some C-suite choices and direct teams at every organizational level.
4. Expertise in Change Management
Due to constant changes in organizations, CHROs need to promote adaptability. They need to guide employees through transitions like restructuring or innovation.
5. Insight Into Employment Law
To guarantee adherence, CHROs need to be updated about labor laws. This reduces risks while protecting the organization’s reputation.
6. Talent Development Skills
Considering the significance of growth, the CHRO role includes developing employees’ abilities. Moreover, they need to be able to create leadership pathways to ensure the growth of employees.
7. Conflict Resolution
To preserve harmony, CHROs need to be able to effectively resolve conflicts and thus foster effective collaboration among teams.
8. Tech Savvy
As HR procedures advance, CHROs need to be able to use technology to enhance efficiency. Furthermore, they also need to be able to leverage tools to improve recruitment and retention approaches.
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Difference Between CHRO and HR Director
A CHRO and an HR director vary in their scope and strategic influence. The CHRO role centers on connecting HR strategies with broader business objectives. Conversely, an HR director mainly manages daily HR activities, including payroll, compliance, and employee relations.
Due to their close collaboration with the CEO and other leaders, CHROs impact long-term workforce strategy and company culture. In comparison, HR directors establish policies and guarantee the effective execution of HR operations. Although the CHRO role highlights executive-level leadership, HR directors oversee departmental responsibilities and lead HR teams.
Moreover, CHROs frequently emphasize innovation and change in HR. On the other hand, HR directors concentrate on operational effectiveness. Both roles are essential, yet the CHRO spearheads the larger strategic vision.
How to Become a CHRO
1. Gain Expertise in Human Resources Fundamentals
Establish a strong base in HR activities such as recruitment, employee relations, and payroll administration. In addition, gain proficiency in fields such as organizational structure, performance evaluation, and regulatory adherence. As you progress down this path, continuously enhance your knowledge of HR systems and workforce planning.
2. Build Strategic Thinking Abilities
Concentrate on cultivating a strategic mindset. Furthermore, discover how to synchronize HR strategies with business goals. You should also examine how human resources influence organizational achievement. At the same time, evaluate industry patterns to tackle upcoming obstacles. As the CHRO position requires vision, consistently look for chances to introduce innovation in HR.
3. Develop Leadership and Communication Skills
As an upcoming CHRO, you need to guide teams successfully and impact executives. So, refine your communication abilities to confidently convey recommendations based on data. Establish connections between departments to promote cooperation.
4. Acquire Business Acumen
To excel in the CHRO role, gain a detailed understanding of business functions. Additionally, explore finance, marketing, and supply chain management to understand the influence of HR strategies on profitability. Also engage in interdisciplinary projects to expand your viewpoint. This understanding will allow you to make valuable contributions to the executive team.
5. Pursue Advanced Education and Certifications
Obtaining a Master’s degree in HR, business management, or organizational psychology improves your credentials. Additionally, certifications confirm your knowledge and dedication to the profession. Qualifications enhance credibility and equip you for the strategic requirements of the CHRO role.
6. Gain Experience in Leadership Roles
Pursue positions that provide chances to oversee HR teams or manage cross-functional projects. Take on responsibilities like creating talent strategies, overseeing change management, or promoting diversity and inclusion initiatives. These experiences will showcase your capability to address intricate challenges, which is an essential skill for the CHRO position.
7. Build Your Network
Remain updated on sector trends and new technologies in human resources. Furthermore, participate in conferences, webinars, and workshops to keep up with new developments. Build a robust professional network by engaging with HR executives and industry specialists.
Is CHRO a Good Career Choice?
A CHRO role is a good career path for those who are enthusiastic about leadership and driving company success via people strategy. As firms focus on human resources, the CHRO role will play an increasingly important role in establishing long-term plans. This job role allows you to influence leadership decisions, promote innovation, and develop effective employee policies.
Because the position is very strategic, it requires competence, business acumen, and leadership abilities.
ALSO READ: How to Become a CHRO and Create Value From Human Capital
How Much Does a CHRO Earn?
The salary of a CHRO varies depending on experience and firm size. Glassdoor reports that a CHRO’s annual salary in India ranges from ₹35,00,000 to ₹86,00,000 (2). Of course, this range reflects variations in industry and organizational size. As the role becomes more strategic, the salary also increases with it. As a result, experienced CHROs can expect competitive pay that recognizes the considerable impact they have on corporate performance.
How Can the Chief Human Resources Officer (CHRO) Programme From IIM Lucknow Help
IIM Lucknow’s Chief Human Resources Officer (CHRO) programme is designed for senior HR professionals who want to improve their strategic leadership skills. This nine-month-long online programme includes a four-day campus immersion. Participants also benefit from working on a capstone project led by IIM Lucknow faculty, which allows students to apply their knowledge to real-world HR concerns.
Upon completion, participants receive the executive alumni status from IIM Lucknow, which provides tremendous networking opportunities.
Advance your career in human resources and enroll in the CHRO programme now. For more learning opportunities, you can explore Emeritus and take the leap today.
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