Successful CHROs are the ones who effectively bridge the two basic HR competencies of the ability to connect with people and with the business.
A report by Harvard Business Review Analytic Services reveals that the 'new' CHRO must be an assertive, data-driven, strategic leader, who demonstrates business creativity and innovation, takes on responsibility for contributing directly to business performance, and arms their organization with the tools needed to be more fact-based in workforce decision-making.
CHRO can impact the whole business, not just on people management but also by guiding business leaders on the effective cost of the resources required to meet business objectives.
Since HR deals with people, a good and successful HR leader has to have a ‘soft heart’ that listens to people and a ‘hard head’ that decides on what is right supported by science and technology.
The core attribute to success for a CHRO is to deliver talent to the organisation through the development and implementation of practices that acquire, develop, motivate and retain that talent. This alone does not guarantee success. He has to have the ability to understand and connect with people, and with the business. Primarily, he needs to focus on building relationships exhibiting a genuine interest in helping others to succeed.
Furthermore he has to develop an intellectual and emotional, connect with the business so that business goals become a priority.
Other attribute for success is in managing attrition which is a way of life in modern business. It is a huge challenge for any CHRO to manage cost and operational implications of this employee turnover dynamics.
John Schwartz in his article for visier.com, elaborates, How does one predict the real turnover, how does one predict the lead-time to backfill departed employees, will new employees be willing to work for the same wage as the ones that departed, can one hire the required skills in the right place, what happens to customer service while the new employees ramp up.
Most managers deal with these problems by looking at historical perspective such as last year’s outcomes, some amount of educated guessing, and with adequate help from financial cushioning to ensure that the bottom line protected. This whole exercise is time consuming and wasteful and far from being accurate.
Data insight into operations and people makes the budget planning process far more accurate. The plans should be based on historical records with adjustments for current workforce trends and inputs from the local managers. Using the available data, a strategic data-driven CHRO will be able to among other things- Plan equitable distribution of compensation based on performance, eliminate wasteful financial buffers, reduce attrition, optimise talent acquisition.
Talent must always be at the optimal cost which creates a healthy bottom line. With the cold statistics provided by analytics that helps intelligent workforce planning, CHROs can effectively manage workforce and focus on opportunities that will yield faster and higher ROI from these investments and projects. It helps CHROs to have a macro view of the business and contribute more to the overall objectives
Some of the other attributes that contribute to success are adherence to the culture and ethos, employee engagement and positive contributions to society. Last but not the least, integrity and courage round off the competencies required for success. HR leaders in relationships to others and to the business have to stand up for their’s and company’s values in ways that contribute to individual, team and organisation's performance. This, is exactly what drives a CHRO's success.
