CHRO: What Does A Chief Human Resources Officer Do?

Within a human resources (HR) department, the chief human resources officer (CHRO) develops and executes HR strategy for an organization’s talent management, succession planning, and more. Having an HR leader focused on people can drive employee retention and benefit a business's bottom line. Use this guide to explore the role of the CHRO, its advantages for business, and how to become a CHRO.

What is a CHRO, and what is the role of a CHRO in a company?

The CHRO is a newer addition to the C-suite leadership as businesses have come to recognize the importance of having a strategy for people management.

The CHRO executes HR strategies with overall business objectives in mind, such as:

• Change management

• Compensation

• Organizational and performance management

• Succession planning

• Talent management

• Training and development

Importance of a CHRO for a business 

The CHRO is a strategic leader who leads managers and is indirectly responsible for all employees. As a CHRO, you communicate HR implications to the executive team, shareholders, and the board of directors.

When businesses have a CHRO, they gain someone who typically:

• Creates succession plans for the executive management team

• Develops procedures and strategies to achieve business operation objectives

• Handles grievances, complaints, and disciplinary issues

• Implements cost-effective and competitive recruiting and retention strategies

• Knows employment-related laws and regulations

• Manages company culture

• Oversees talent acquisition, training, benefits, and career and leadership development

• Supports the company's mission and strategic vision via HR efforts

What is the difference between a CEO and a CHRO?

While both chief executive officer (CEO) and CHRO are leadership positions, a CEO is a business's overall leader and strategist, and a CHRO leads the people side of a business.

A CEO (chief executive officer) is the top leader of a company, responsible for the overall strategy, direction, and performance of the organization. As a CEO, you make major decisions, oversee all departments, and represent the company to the public and investors.

A CHRO (chief human resources officer) leads the human resources (HR) department, focusing on attracting, developing, and retaining talent. In this role, you ensure the company has a strong workforce to achieve its goals and manage employee relations, benefits, and training.

CHRO salary and job outlook 

According to the US Bureau of Labor Statistics, the job outlook for human resource managers is strong with a 6 percent average growth between 2023 and 2033 [1]. According to Glassdoor, the estimated average total pay for a CHRO in the US is $328,748 per year [2]. This figure includes an average annual base salary of $188,680 and $140,068 in additional pay, which may include profit-sharing, commissions, or bonuses.

What does a chief human resources officer do?

A CHRO can work in any number of business settings and in private or public companies. You could also work with an independent HR provider. Larger health care, government, financial, and educational enterprises are more likely to have CHRO roles.

As a CHRO, expect to perform these tasks:

• Plan and implement change.

• Set policy for hiring, mentoring, developing, rewarding, and promoting talent. 

• Manage compliance, performance, benefits, and payroll.

• Be accountable for employee well-being, development, and professional success.

• Foster organization-wide communications. 

• Help value short-term costs versus the long-term value of investing in human resources.

• Foster diversity and equity in the workplace. 

Key CHRO skills 

As a leader in the human resources area, the CHRO needs to have a number of technical and workplace skills. These abilities can include a range of the following technical and workplace skills.

Technical skills 

To be a CHRO, you’ll need to demonstrate a range of technical skills. These could include proficiency in:

• Accounting and finance

• Business data and analytics

• Employment law

• Ethical business practices

• Global and cultural awareness

• Leadership and management

• Project management 

Workplace skills

A CHRO should also excel in: 

• Analytical thinking

• Attention to detail

• Communication (verbal and written) 

• Conflict resolution

• Organization

• Problem-solving

How to become a chief human resources officer

Many paths are available to becoming a chief human resources officer that don’t require an HR background. However, the traditional route to becoming a CHRO is as follows.

1. Earn a degree. 

A CHRO’s career path typically begins with a bachelor’s degree. Eventually, you may also choose to pursue a Master of Business Administration (MBA) or a business master's degree in human resources or a related field.

2. Gain professional work experience. 

A CHRO is not an entry-level position. Professional work experience is required to pursue a career as a CHRO. Any background in recruiting, managing, assessing, and coaching people can help you become a candidate for the role.

The typical progression for jobs in human resources follows:

• HR assistant: An entry-level position that helps with onboarding new employees and informing existing employees about HR policies and benefits

• HR specialist: A role with a specific area of responsibility, such as benefits or employee engagement

• HR manager: A management role that oversees programs and policies with a more holistic view of the organization’s objectives

• HR director: A position that has a more strategic role than a manager, while overseeing the others on the HR team

Working your way up within HR isn’t the only way to gain relevant experience. Taking on leadership roles and volunteering for people-related projects can also help you gain the necessary skills in people management.

3. Cultivate a growth mindset and relevant skills. 

While CHRO is a growing opportunity, many organizations still lack an HR leader at the C-suite level. To be hired as a CHRO, you’ll need to demonstrate an understanding of areas outside of training and benefits, like leadership, business operations, and strategy. Coursework in financial operations or business analysis can help enhance your resume and show an understanding of the levers that make a business successful. 

As a CHRO, it’s important to cultivate a growth mindset and be able to motivate others. Articulating the company vision and inspiring people to accept change is key to being a successful CHRO. Some relevant skills to have include:

• Strategic decision-making skills 

• Data literacy 

• Ability to access employees 

• Ability to identify talent gaps or skills 

At the same time, show your willingness to try new things and learn from your experiences. A CHRO will ask employees to do the same. 

4. Consider certifications. 

Consider getting certified by industry groups. The Society for Human Resource Management offers SHRM-CP and SHRM-SCP certifications. The SHRM Certified Professional (SHRM-CP) tests basic knowledge of HR practices and principles. More experienced HR employees can seek SHRM Senior Certified Professional (SHRM-SCP) standing. This certification exam is more strategically oriented and focuses on skills such as:

• Developing HR policies and procedures

• Overseeing the execution of integrated HR operations

• Directing an entire HR enterprise

• Leading the alignment of HR strategies to organizational goals 

You might also look into credentials from the Human Resource Certification Institute, including:

• Associate Professional in Human Resources (aPHR), which is for entry-level HR employees

• Professional in Human Resources—International (PHRi), which is for established HR practitioners working outside of the United States

• Senior Professional in Human Resources, which takes a more holistic approach to HR skills at the strategic, leadership level 

Build in-demand skills and begin your path to CHRO roles on Coursera

You can find many ways to expand your skills and develop your talent for human resources. On Coursera, consider taking Human Resource Management: HR for People Managers or Leading: Human Resource Management and Leadership Specialization. You can also develop your facility in a particular area by taking courses such as Human Resources Analytics or Hiring Practices. These courses can help you gain leadership skills to advance in your career.