What is a Chief Human Resources Officer (CHRO)?

What are the core responsibilities of a Chief Human Resources Officer?

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 and 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.

Defining the role

A 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.

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 interest. 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 will identify where within the workforce salaries are not competitive and fair when compared with other employees or elsewhere in the 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 a platform where all possible candidates are fairly considered for a position and have the means to do so.

Equally important is a CHRO’s responsibility to encourage and celebrate diversity and inclusion amongst current employees. This may be achieved through the implementation of programmes and events.

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

By creating an environment which allows employees to grow personally and professionally, a CHRO increases staff retention. Some examples of this would be through professional training or mental health support.

Managing company culture

Aligning the company’s culture with that of its employees is vital. A CHRO ensures that there is a positive culture, which promotes a healthy and engaging workplace. As culture is often personal, the CHRO might ask for employee feedback or undertake surveys to make improvements.

What is the career path for CHRO’s?

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. This career path typically starts with entry level HR positions, such as administrator or coordinator, which provide a foundational grasp of the work in practice.

Progressing to mid and senior-level positions is the next stage, such as Resources Officer or Manager job titles. This advancement is possible after gaining experience and developing leadership skills.

After reaching the position of CHRO, which allows for experience operating on a corporate board level, 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 

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 region and industry a company is positioned in, 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, not inclusive of bonuses or other salary schemes. A CHRO with 10-19 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. For further information on 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 are having to 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.

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.

In addition, 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.