Chief human resources officers (CHROs) have much more strategic and complex jobs in business and should not be afraid of driving innovation in the HR function, according to a global HR expert

In many ways, the CHRO is part chief HR officer, chief people officer, chief culture officer, and chief change officer, and within all of these functions they must be able to act boldly, drive innovative new programs, and collaborate directly with the CEO and other top leaders, said Josh Bersin, principal of Bersin by Deloitte.

“The CHRO needs to make the HR organisation run well and they have to push the people in the function to be accountable to the business,” he said.

“The HR leader has to set standards for the HR function and say, ‘We’re going to be a high performing group too. We’re not just going to be the guys behind the scenes.’”

CHROs also need to be a trusted partner to the CEO and advise them about key people-related issues they need to consider, Bersin said.

“They need to be able to talk to the CEO about changes in the way the business is managed and the people-related issues they need to consider. The CHRO needs to be able to say: ‘I’ll take care of most of them for you, but you need to do some things too.’

“And sometimes they need to push back and tell them a change may potentially be very disruptive and say, ‘Either I advise we don’t do it, or maybe we do it in a different way or give me a chance to change some things to get ready for that.’

“That to me is the magic of this role and the reason,” said Bersin. “The reason I like the word ‘bold’ is sometimes the CHRO has to stand up to the CEO and say ‘no, that’s not going to work.’”

The bar has been raised for the HR profession, according to Bersin, who said CEOs are increasingly focusing on the value of human capital to the business and that CHROs and the HR function need to be ready for this.

5 things CHROs need to focus on in 2014

  1. The CHRO should run HR well. Hiring, onboarding, training, payroll, labour relations, benefits, and all of the other administrative functions must work well – or else the business simply cannot operate
  2. CHROs are responsible for the “corporate talent system.” Through their efforts, they build the performance, learning, succession, onboarding, career management, and compensation systems that drive productivity, engagement, and performance. This is a strategic and difficult role – one that requires senior level relationships, as well as deep experience in the practices of talent management
  3. The CHRO is the “keeper of the culture.” While the senior executives and CEO create and drive the culture, the CHRO should monitor its health, provide feedback, and advise the CEO when things have to change. Many companies define their success through their culture. It is the CHRO’s role to help senior leadership to develop and reinforce the behaviours that drive success
  4. The CHRO should transform and up-skill the HR team. Now, more than ever, organisations feel that the bar has been raised on HR. The team must not only serve as strategic consultants to the business, they also need to understand analytics, implement complex new software tools, and understand the role of changing technology for business operations
  5. Finally, the CHRO must plan for the future. HR, through its particular lens into the business, has a unique perspective on the people challenges and opportunities we face. The CHRO must drive a view into the future – developing an understanding of future skills gaps, labor market opportunities, and the impact of potential mergers and acquisitions.

Source: 2014 Predictions: Building a Strong Talent Pipeline for The Global Economic Recovery, Bersin by Deloitte.

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