What is a Chief Human Resources Officer (CHRO)?

Defining the role

A Chief Human Resources Officer (CHRO) is a senior job title and position within a company. This individual often reports to the most senior positions within a business, such as the Chief Executive Officer (CEO) or Chief Operating Officer (COO), and frequently interacts with these – and other – associates at board level. Usually, all other HR staff report into the CHRO. The role might require responsibility of a global workforce, requiring an understanding of HR practice and laws spanning different regions.

What are the core responsibilities of a CHRO?

A Chief Human Resources Officer oversees all aspects of the human resources department within a company, including the management of other HR employees. This is largely a strategy and decision-based position that requires a considerable understanding of the workplace and its employees. The decisions made by a CHRO can heavily impact other areas and departments of a business. Here, we explore some of the most common responsibilities of a CHRO.

Strategic planning

CHROs make plans for the current and future workforce. They create a long-term HR strategy which aligns closely with the company’s objectives and protects the staff’s best interests. This might include future hiring, employee performance and welfare.

It is important for a CHRO to understand the field or industry their company operates within, as this context can help plan the most effective strategy.

Compensation and benefits management

It’s common for CHROs to make major decisions on both compensation and benefit schemes. A CHRO identifies where salaries within the workforce are not competitive and fair compared to other employees and in the broader market. Putting in place a well-selected set of benefits gives employees additional incentive beyond salary.

Compliance and risk management

While labour laws and regulations vary between regions, all CHROs must ensure a business is legally compliant. This can be handled by enforcing internal policies around ethical business practice, health and safety and employee relations. A forward-thinking CHRO identifies possible future risk.

Diversity, equity and inclusion

A CHRO ensures that these values are upheld at all levels of the business. Initially this takes place during the hiring process, where the CHRO creates an accessible platform where all possible candidates are equally considered for a position.

Equally important is a CHRO’s responsibility to encourage and celebrate diversity and inclusion amongst current employees. This may be achieved through the introduction of groups and committees to organise social events, like inclusive holiday celebrations, and informative sessions such as diversity workshops. The CHRO should encourage representation from all areas of a diverse workforce.

Employee relations and engagement

It is the duty of the CHRO to help build positive employee relations and communication. It will likely fall on the CHRO to oversee the most serious breakdowns in employee relations, or those at a senior level.

Talent development and retention

A CHRO aims to retain employees by creating an environment that allows them to grow personally and professionally. Some examples of this would be through professional training programmes and qualifications, mentoring opportunities, and learning initiatives. Providing mental health support, such as counselling or therapy, and wellness programmes and activities is also crucial for fostering a supportive workplace.

Managing company culture

Aligning the company’s culture with its core values and the needs of its employees is crucial. A CHRO makes sure the company has a positive outlook, promoting a healthy, inclusive and engaging workplace. This means creating an environment where employees feel valued, supported and motivated. To keep improving the culture, the CHRO might ask for feedback through surveys and encourage check-ins between employees.

What is the career path for CHROs?

This career path typically starts with entry level HR positions, such as HR Administrator or Coordinator, which provide a foundational grasp of the work in practice. Then, after gaining experience and developing leadership skills, the next stage is progressing to mid and senior-level positions, such as Human Resources Officer or HR Manager job titles.

Once the position of CHRO is reached, which gives experience working on a corporate board, there is potential to advance to other C-Suite or more senior executive positions in the future, such as COO or CEO.

How to become a CHRO and what are the required skills

It is common for a potential CHRO to have an undergraduate or master’s degree in human resources. Additional certifications and qualifications might be beneficial depending on the market or industry.

CHROs can be promoted from other, less senior HR positions or hired externally. A potential CHRO candidate might show exceptional aptitude within a specific industry or company. Experience within different areas of HR is advantageous for gaining a holistic understanding of the work.

A CHRO shares the common skills required for all HR roles, but with a greater level of situational experience; communication, conflict resolution, organisation to name a few. Core human qualities such as integrity, patience and emotional intelligence are also vital.

What salary can you take home?

A CHRO’s salary varies depending on the company’s region and industry, as well as its size and number of employees.

As of 2024, the average base salary for a CHRO is 150,000 GBP per year excluding bonuses or other salary schemes. A CHRO with ten to 19 years of HR experience earns an average of 126,690 GBP, while a CHRO with more than 20 years’ experience averages 165,000 GBP.

These figures are based on a salary in the United Kingdom. To find out more about salaries in your location, please get in touch with a member of our team.

The evolving role of a CHRO

The CHRO role is constantly evolving to meet the needs of the modern workplace. Today CHROs must consider how changing lifestyle trends, such as flexible, hybrid and remote working, will have an impact. CHROs are strategizing with other departments to guarantee these changes are beneficial to the company’s productivity, wellbeing and culture.

CHROs now playing a greater role in promoting corporate social responsibility (CSR) and sustainability, connecting these values with the company’s own. Working in a ground-up way like this promotes more realistic corporate responsibility.

Technology also presents new tools and some challenges to the CHRO role. The use of data analytics, social media and software is more prominent than ever for managing employees and during the hiring process.

Understanding how current and prospective staff are using AI ethically and in the best interest of the business is at a critical point. AI can be used to automate and streamline some HR processes and reduce the workload of a CHRO and their team.

For more information on the role of a CHRO, or to understand how the SR Group can help you with your HR needs,