Ask a CEO what they consider their greatest asset to be, and the resounding answer is more than likely to be “our talent.” Their talent is also the most significant line item on the company’s budget. Effective management of the greatest asset of a company falls into the hands of the CHRO (Chief Human Resources Officer or Chief People Officer). To be considered a valuable partner to the CEO, the CHRO must ensure their talent strategies and budget management is aligned with the company’s strategic goals. The CHRO leads the Human Resources function for the company and ensures the successful management of its human capital. Reliability, integrity, empathy, and discretion are all characteristics a CEO expects of a CHRO. If done well, the value of a strong HR team ensures employee engagement, a dynamic and inclusive culture, high-level individual and team performance, all of which leads to increased business results. What does effective management of their ‘greatest asset’ mean to the CEO? The CEO needs a CHRO to be a strategic planner who can allocate talent efficiently, deliver with integrity and be a role model, mastering the values of the company, and setting the example for the behaviors of the organization. It is the CHRO and HR Team’s role to analyze what kind of resources are required (using strong data analytics to decipher what kinds of talent are included in a workforce plan, at what time, and at what cost). This enables the CEO to make the right decisions on which talent will execute the business strategy to increase company results. The goal is the make the business as progressive and efficient as possible. What Skills Should a CHRO have? The CHRO role is a senior role and is responsible for leading the human resource function and indirectly managing the workforce. When CHROs link their human resource strategies to company strategies, they can align their human resources functions with business goals, acquire and retain the right workforce, and manage the organization’s culture. Key attributes the CEO is looking for: • The ability to advise senior leadership on HR-related issues. • Development of HR programs and policies that support business decisions and employee engagement. • Leads talent acquisition efforts, promoting workplace inclusion, and designs a qualified workforce planning model (that involves employees, contractors, and non-traditional talent) to support business goals. • Defines and manages the human capital budget by utilizing workforce analytics that focuses on cost containment and people investment that allows partnership with the CFO. • Contributing to a healthy corporate culture to improve productivity, employee retention, and overall workflow. • Managing government regulations and public policies in line with Corporate Counsel and ensuring compliance on a global basis with employment laws.
The Future of HR If the CHRO wants to be considered a strategic partner with the CEO, job #1 is to understand the critical drivers of what it takes for the company to achieve its goals. The CHRO needs to understand the external market and be pragmatic. Today’s world means having the ability to be deeply involved in data and reporting. The CHRO must be accountable for business decisions, performance, and delivering the people aspects of the business strategy. The CHRO must take ownership for the services, solutions, and initiatives for which they are accountable. The CEO should be a champion of the CHRO and support their ability to be a vital human capital and business advisor. Our Expertise MSI’s Consulting and Advisory Team are experts in aligning corporate human capital strategies with a company’s business goals. Our focus is helping organizations optimize and develop long range strategies for our clients’ success.