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What does a chief human resources officer (CHRO) do?

A chief human resources officer (CHRO) is the executive accountable for a company's people: how many it needs, how it hires, develops, pays and keeps them, and the culture they work in. Sitting on the executive team under the chief executive, the CHRO also advises the board on leadership succession and pay. They set people strategy and leave the running of HR to directors below them.

The short answer

Key takeaways

  • The CHRO owns people strategy; HR directors and managers run the function.
  • Chief people officer is the same seat under a newer name in many firms.
  • CHROs sponsor large people programmes and delegate routine HR buying.
  • Employee data is sensitive, so legal, IT and finance join most CHRO purchases.

What a CHRO is accountable for

A CHRO is accountable for making sure the company has the people and leadership its plan needs, at a cost it can afford. They sit on the executive team and turn the business strategy into a workforce plan.

  • Workforce planning and organisation design
  • Leadership development and succession for senior roles
  • Reward policy, including executive pay, often with the board's remuneration committee
  • Culture, engagement and the employee experience
  • People risk: employment law exposure, disputes and restructures
  • The HR operating model and the systems behind it

Chief people officer and other names for the CHRO

Chief people officer is the commonest alternative title for a CHRO, and in most companies the two describe the same executive seat. The newer name signals a focus on culture and employee experience as well as policy, but the accountability is the same.

Other names include group HR director, used widely in the UK, and people director in smaller firms. Check whether the person sits on the executive team; that, more than the title, tells you whether you are dealing with the CHRO level.

CHRO vs HR director

A CHRO decides where the people agenda is heading, while an HR director makes the HR function deliver it. In large organisations several HR directors may report to one CHRO, each covering a region, a business unit or a specialism such as reward.

In mid-sized companies the HR director is often the most senior HR person and has no CHRO above them. That changes who you speak to: the HR director then holds both the strategy and the budget.

What a CHRO buys and who else signs

A CHRO buys what changes how the whole workforce is hired, developed or paid: core HR platforms, leadership programmes, executive search, reward consultancy and large learning contracts. Smaller purchases are usually delegated to HR directors or specialist heads.

Few of these decisions are the CHRO's alone. Finance approves the cost, IT reviews any system that holds employee records, legal checks data processing terms, and in some countries employee representatives must be consulted. A seller who plans for those reviewers from the first meeting avoids a stalled deal later.

Selling to a CHRO without wasting their time

Sell to a CHRO by connecting your offer to a people problem the company already faces, then asking who should run the evaluation. Public signals help: a restructure, rapid hiring, a new country, leadership changes or published values that the company is clearly trying to live up to.

Avoid leading with features an HR manager would care about. A CHRO wants to know what changes for the business, what it costs, what the risks are for employees, and who on their team will own it.

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Clear answers

Common questions

Does a CHRO sit on the board?

Usually not as a director, but they sit on the executive team and often attend board or remuneration committee meetings on people and pay matters.

Who does a CHRO report to?

The chief executive. Their work on executive pay is also overseen by the board's remuneration committee.

When does a company appoint its first CHRO?

Typically when headcount, locations or regulatory exposure grow to the point where people strategy needs an executive owner rather than an HR manager reporting to a founder.

About this page. Written by the Pebbles Ai team for people who run sales, marketing and growth. Last updated .

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