The strongest of business empires, multinational companies and billion-dollar franchises are run by talented, dedicated people. Having an eye for talent, capturing the attention of prospective candidates, helping them upskill, and retaining them is no easy feat. The human resource department of an organization is responsible for monitoring an employee’s life cycle, right from recruitment till termination.
What does a Chief People Officer do?
Analogous to a CEO (Chief Executive Officer) or a CFO (Chief Financial Officer), a Chief People Officer heads the HR department in an organization. Every C suite member takes care of different aspects of an organization’s functioning. The CPO is responsible for aligning human resource processes with the strategic goals of the organization.
A CPO ensures smooth implementation of the organization’s policies regarding employees. They represent the HR department at the top management level, and see to it that the priorities of the department fit together with the business goals of the organization.
Recruitment and talent acquisition
Finding good candidates for a position is like looking for a needle in a haystack. Several factors can determine how successfully an employee adjusts to a new role. Right from advertising a vacancy to onboarding the employee, the CPO promotes novel approaches to talent acquisition.
For example, Villeda and McCamey (2019) have discussed the use of social media sites for recruitment and selection of employees. The CPO is responsible for overseeing tasks like advertising job openings, recruiting prospective employees, selection process, and onboarding.
Training and skill development
Continuous learning is a tried and tested mantra for professional growth. Employees who are willing to learn and upskill constantly are an asset to the organization. It is the responsibility of the CPO to ensure that employees are benefitting from the learning opportunities provided by the company.
They inform employees about which training programs they can benefit from, and how to enroll. Bridging any skill gap in the workforce by rolling out new courses is also the responsibility of a CPO.
Performance management
Monitoring a company’s performance is more than setting deadlines and targets. A CPO ensures that goals are realistic, in the sense that human resources are adequately qualified and skilled to take up required responsibilities. For example, imagine you are assigned to a new project, and you are expected to work with a software that was never a part of your portfolio. It is the responsibility of the CPO to ensure that training is provided well in advance before assigning the project.
Having assembled well equipped teams for different projects, periodic performance reviews are conducted to see how well the employees are working on their goals. Yes, those anxiously anticipated performance reviews are planned under the leadership of the CPO. The CPO determines rewards for good performance, and ways of helping people improve their performance.
Employee relations
Organizational commitment largely depends on employees feeling seen, heard and cared for by the management. The CPO makes sure that grievances are addressed and workplace conflicts are resolved in the most efficient manner. They maintain an inclusive atmosphere for employees to bond and foster a healthy work culture.
Compensation and benefits
Remember those salary negotiations that happen when you are offered a job? CPOs determine the compensation, salary structures, insurance and health benefits, bonuses, increments, severance packages, retirement plans, etc. offered to employees. They design the compensation plans depending on the organization’s budgetary constraints, and industry rates for those roles.
Compliance with labor laws and regulations
CPOs stay up-to-date with changes in labor laws and ensure that the organization’s policies. They are responsible for proposing changes to the company’s policies as per changes in local or national level laws and regulations. CPOs play a crucial role in legal matters involving employees’ rights, claims of discrimination or exploitation in the company, and lawsuits regarding compensation.
Skills and qualifications of a Chief People Officer
Knowledge of human resources
Heading an HR department requires an extensive knowledge of the principles and best practices of managing human resources. An academic background in industrial/organizational psychology or human resource management ensures a theoretical understanding of the role. Experience in multiple departments and organizations is important to know how to implement theoretical guidelines, avoid common mistakes and foresee what textbooks can’t teach.
Understanding the business
Dhanpat and colleagues (2020) have highlighted that HR professionals need to assume roles as strategic partners to mitigate challenges in the present. A CPO familiarizes themselves with the business operations of the organization.
They study the industry, the sector, the competitors and various departments of the organization to understand the factors influencing work performance. They learn how to appeal to the interests of different stakeholders, including financial investors, employees, clients and management, by using appropriate communication methods.
Interpersonal skills
Interviewing candidates for a vacancy, mediating workplace conflicts and telling an employee about the decision to let them go, all require strong interpersonal skills. CPOs need good leadership qualities to supervise the day to day operations and achieve the long term goals of the HR department. Both teamwork and leadership are essential for cooperation and collaboration within the department, and between the department and employees.
Communication skills are crucial for giving a clear idea to employees about what is expected of them. Introducing proposals for new projects and initiatives to key stakeholders is best done by a CPO who knows how to pique the interest and get the approval of their audience.
For example, a presentation about an upcoming project will revolve around its viability and profits, when the audience is investors and sponsors. While presenting to clients, it will focus more on the unique features of the product or service. CPOs know how to speak the language of their audience.
Challenges in the role a Chief People Officer
Keeping up with changing work trends
The COVID pandemic prompted a rise in the number of people who prefer to work from home, or want a hybrid work mode policy. CPOs ensure that HR professionals are able to make a seamless transition between remote and in-person modes.
Integrating technology in work operations
Automation of tasks is rapid, and HR professionals are responsible for training employees to use the latest technology in their day-to-day work operations. CPO is responsible for assessing how user-friendly a technology is, and helping employees deliver on time with minimal errors.
Inclusivity and accommodating diversity
Romani and colleagues (2018) found that human resource professionals fail to see how their diversity measures can contribute to reproduction of inequalities through subtle, structural forms of discrimination. HR professionals need to ensure that their diversity initiatives are actually getting good feedback from minority employees. A CPO is responsible for overseeing the design and implementation of such initiatives.
In conclusion, a Chief People Officer heads the HR department in an organization, and ensure that HR initiatives align with the company’s policies. They oversee crucial operations like hiring, onboarding, training, deciding compensation, addressing grievances, and employee well being. A CPO needs to have formal training in human resource management, past experience in HR departments, interpersonal and communication skills and business knowledge.
If you are a business owner, you can research the benefits of having a CPO. If you are an employee, this article will help you understand the role of a CPO in helping you improve your performance and enhance your experience at the company. If you are an HR professional, you can look for resources to update yourself with the skills and experience needed to be a CPO.
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