Evolution of the profession
The role of the CHRO has evolved rapidly to meet the human capital needs of organizations operating across multiple regulatory and labor environments. Whereas CHROs once focused on organizations human resources in just one or two countries, today many oversee complex networks of employees on more than one continent and implement workforce development strategies on a global scale. CHROs are especially important now in helping companies navigate the workforce issues associated with expanding into emerging markets, and in developing labor policies to suit different regions of the world while preserving a company's core culture. The strategic role of the CHRO has also expanded as workforces are increasingly composed of knowledge workers, and companies require better systems to compete for scarce high-skilled workers. Rather than focusing exclusively on human resource issues and service delivery, CHROs must concentrate on creating strong talent pipelines to both enhance organizational decision-making and secure future growth. These changes in the business landscape have required the CHRO to heighten the focus on talent, capabilities and company culture.Responsibilities
According to an annual survey conducted by the largest industry group for CHROs, the HR Policy Association in the United States, top CHRO concerns over the years fall roughly into three broad categories: talent, capabilities, and culture.Talent
Talent management includes building the quality and depth of talent, including a focus on succession and leadership/employee development. In a separate survey of over 200 U.S. and European CHROs, University of South Carolina professor Patrick Wright found that nearly all participants cited 'talent' as the top priority on their CEO's agenda for HR.Capabilities
Managing corporate capabilities includes dealing with rapid changes in technology, globalization, and the increasingly complex external context of government regulations and public policy (impacting union and employee relations, executive compensation, health care, retirement programs, health and safety, etc.). The key capabilities required are expected to vary by company based on business strategy and the competitive global environment. Adapting to new technologies and sources of information and communications are essential to success for all companies. Other capabilities the HR function must help the company develop include: managing the external context, managing a multi-generational workforce, adapting to change, and operating effectively in different cultures and business structures.Culture
Cultural issues include organizational change, agility, social networking, ethics and values, innovation, customer focus,Path to becoming a CHRO
The CHRO is the top HR position, but those who attain this role arrive there by working in a variety of functions both within the HR function and other functional and leadership roles both inside their company and across industries and employers.Becoming Top CHROJob description
Two recently published books about the CHRO profession, ''The Talent Masters: Why Smart Leaders Put People Before Numbers'', by Bill Conaty and Ram Charan; and ''The Chief Human Resource Officer, Defining the Role of Human Resource Leaders'' by Pat Wright, offer insights into the profession from its leading practitioners. The perennial top priority for CHROs is talent management. In ''The Chief Human Resource Officer, Defining the Role of Human Resource Leaders'', Eva Sage-Gavin, former CHRO for the Gap emphasizes this point saying, "... at the end of the day, you and your team are the experts at talent management and must be able to understand and identify good versus great talent… Identifying critical positions, the great attributes needed to fill them, and prioritizing recruiting strategies accordingly was the key to success, whether I was working with engineers, apparel designers, or international operations management." Kevin Cox, CHRO for American Express, argues that "Great CHROs (and great CEOs) understand that talent needs to be developed in thoughtful, but not incremental, ways. Getting the balance right between ‘stretch’ and ‘in over her head’ isn't easy, but it is vital to the success of a world-class talent strategy." The CHRO helps the company build sustainable competitive advantage through the selection and development of top talent that possess capabilities that help differentiate the company from its competitors. Conaty and Charan emphasize this point in ''Talent Masters'' by noting that “Only one competency lasts. It is the ability to create a steady, self-renewing stream of leaders. Money is just a commodity. Talent supplies the edge. We can’t put it any better than Ron Nersesian, the head of Agilent Technologies’ Electronic Measurement Group: ‘Developing people’s talent is the whole of the company at the end of the day. Our products all are time- perishable. The only thing that stays is the institutional learning and the development of the skills and the capabilities that we have in our people.’” Other leading CHROs emphasise additional aspects of HR leadership, such as delivering results with a global team – a major challenge identified by Hugh Mitchell, – and developing and communicating anReferences
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