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Until a few years ago, the role of CHRO didn’t even exist. Now, every leading organization which puts employee experience at the core of business strategy has a CHRO, or as they are most commonly referred to as Chief People’s Officer or Chief Employee Officer. 

Slowly companies are realizing the need for an in-charge who can take the reins of workforce management and drive the strategic vision to develop employee development programs, meeting business objectives. In the future, as organizations become more strategic and value-oriented, the role of CHRO will evolve to meet the demands. 

From an administrator to strategic thinker 


From merely overseeing employee engagement and development program, HR executives need to be more strategic in their approaches. While CEOs and CFOs set business and budget targets, CHROs would need to think backward and develop recruitment and engagement strategies that translate directly into business value. 

It’s more like how CFOs have transitioned from administrators to strategic valued partners, when it became clear that movement of money can bring value to company. However, in the case of CHROs, they need to jump to analytics. 

A better approach to analytics for CHROs is— to outline the desired outcome and work backward. Else, it would be easier to get lost in the deluge of information available on employees. 

Knowledge of people analytics would be required here. In-house analytics teams or taking an online analytics course would be mandatory to get going with analytics and continue with support decision making and other employee related-decisions. 

Creating people solutions 


HR leaders will prove their worth by prescribing a robust talent allocation strategy which meets business interests and delivers value. Nobody in an organization, more than Chief HR officer, with a broad knowledge of human resource allocation will give a better suggestion on how to divide talent so as to deliver maximum productivity. 

HR leaders will drive inclusion and diversity initiatives. Doing so will reap financial benefits. As per a McKinsey report, companies in the top quartile for gender diversity were expected 15 percent more likely to have financial returns above the national average. Similarly, companies in the top quartile for inclusion were 35 percent more likely to have financial returns above the national average. 

Culture will be a driving factor for business growth and CHROs will lead the teams and build an amazing work culture. Company culture has the potential to break companies. During times of change, company culture will give a competitive advantage. 

Wrapping it Up 

Overall, HR leaders will evolve from administrative managers to strategic thinkers. It will require them to build some new skills and think of workforce from a different perspective. Essentially, from a growth mindset. For this, they will have to put on their learning caps and learn new skills. Learning new technology will be a big part of it. It will finally be a time when HR leaders will be seen as growth drivers for organization, instead of human resource managers.   

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Ariaa Reeds

Ariaa Reeds is a professional writer who curates articles for a variety of online publications. She is currently working for TopCHRO, an HR news and blog site that highlights best performing CHROs and HR professionals worldwide. She also has extensive experience writing on a diverse range of topics including business, education, finance, and technology.

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