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What does an HR director do?

An HR director runs a company's human resources function: the HR team, employment policies, recruitment and onboarding processes, employee relations and the systems that hold staff records. They report to a chief human resources officer in large groups, or to the chief executive or chief operating officer in smaller firms. In mid-sized companies the HR director usually holds the HR budget.

The short answer

Key takeaways

  • An HR director runs the HR function; a CHRO, where one exists, sets people strategy above it.
  • HR managers handle cases and processes; the director owns policy, budget and the team.
  • At mid-market companies the HR director is usually the budget holder for HR purchases.
  • Triggers such as fast hiring, a new country or a system renewal open conversations.

What an HR director does in a mid-sized company

In a mid-sized company an HR director does most of the work that a larger firm would split between a CHRO and several specialists. They run a small HR team, keep the company within employment law, and make sure hiring, onboarding, performance reviews and leaving all follow a process people trust.

Much of the week goes on cases and change: a difficult grievance, a new policy on hybrid working, a manager who needs coaching, a reorganisation that has to be consulted on. Somewhere in between, the HR director also chooses the tools and suppliers the team relies on.

  • Lead the HR team and set its priorities
  • Write and update employment policies and contracts
  • Run recruitment, onboarding and leaver processes
  • Handle employee relations cases with line managers
  • Work with payroll and finance on pay changes
  • Choose HR systems, agencies and training suppliers

HR director vs HR manager

An HR manager runs HR processes and cases, while an HR director owns the policies, the budget and the team that runs them. The manager might handle a disciplinary from first meeting to outcome; the director decides what the disciplinary policy says and steps in when a case carries legal or reputational risk.

Seniority shows in the reporting line too. HR managers report to the HR director; the HR director reports to an executive and often attends leadership meetings.

Where the HR director sits in the organisation

Where the HR director sits depends on company size. In a large group they report to a CHRO and may cover one region or division; in a company with a few hundred staff they are often the most senior HR person, reporting to the chief executive, the chief operating officer or sometimes the finance director.

That position matters to anyone selling into HR. Without a CHRO above them, the HR director decides what to buy for HR and needs only finance and IT to agree.

What an HR director buys and what triggers a purchase

An HR director buys the systems and services that keep HR running: an HR information system, an applicant tracking tool, recruitment agencies, training providers, employee benefits and occupational health. Most purchases follow an event rather than a sales email.

  • Rapid hiring that the current process cannot handle
  • Opening in a new country with different employment law
  • A contract renewal on an existing HR system
  • A change in leadership or a new chief executive
  • A policy change that needs training across the company

Common mistakes when approaching an HR director

The commonest mistake is treating an HR director as a gatekeeper to the rest of the company rather than a buyer with their own problems. Others follow from not understanding the job: vague promises about culture, careless handling of employee data, or ignoring that finance and IT will review the purchase.

A better approach names a specific process, shows how employee data is protected, and gives the HR director what they need to brief their own leadership.

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Where Pebbles Ai fits

Clear answers

Common questions

Is an HR director a senior role?

Yes. It is the senior HR role in most mid-sized companies and a leadership role below the CHRO in large ones.

Does an HR director handle payroll?

They oversee the pay changes that feed payroll, such as new starters, leavers and rises, but payroll itself often sits with finance or an outsourced provider.

What qualifications does an HR director need?

There is no single required qualification. Many hold a professional HR qualification and have years of generalist HR experience, including employment law and employee relations.

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

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