LoginSwitch Language
For years, multinational companies have relied on a tried-and-tested framework to manage their people. Developed by management expert Dave Ulrich in 1996, this approach is built on three pillars: HR business partners who align HR strategies with business needs, centers of excellence that handle specialized functions like talent development, and shared service centers that take care of administrative tasks. It’s been the go-to model for decades, but the landscape is shifting.
Today, HR is stepping into a much bigger role—one that’s less about following traditional structures and more about driving agility and change. The classic three-pillar setup is being replaced by flexible teams that can tackle urgent priorities and adapt to shifting needs.
For many small and medium-sized businesses (SMBs), human resource management often feels like navigating uncharted waters. While the basics—like payroll, hiring, or compliance—can be outsourced until you’re ready to bring them in-house, the real challenge lies in crafting an effective HR strategy. How do you attract, develop, and inspire a team that drives growth while keeping costs under control?
This is where the Chief Human Resources Officer (CHRO) comes into play. But what exactly does a CHRO do, and why is this role so vital for businesses aiming to scale? Let’s break it down.
A Chief Human Resources Officer (CHRO), sometimes known as a Chief People Officer (CPO) or Chief Talent Officer (CTO), is a senior leader who works closely with other executives to align HR strategies with business goals. Their role goes beyond overseeing HR processes—they take a big-picture approach, helping the company build the right systems, structures, and people strategies to drive long-term success.
While smaller companies might not feel the immediate need for a dedicated CHRO, the role becomes increasingly essential as the business grows and talent needs become more complex. In many cases, other executives temporarily fill this gap, but this isn’t a sustainable solution for scaling businesses. A Deloitte survey found that 80% of executives believe HR leaders play a crucial role in shaping organizational strategy, particularly in periods of growth or transformation.
The CHRO is not just responsible for day-to-day HR operations—they’re the architect of the company’s talent strategy. This includes designing hiring systems that attract top talent, developing robust training programs, and ensuring employment practices comply with regional and industry standards. A great CHRO also builds a company culture that fosters engagement and retention, creating a workplace where employees feel valued and motivated to contribute to the business’s success.
In short, as your organization scales, a CHRO becomes a key player in ensuring your HR strategy evolves alongside your business, setting you up for sustainable growth.
When you look closely at the role of a Chief Human Resources Officer (CHRO), it’s clear their work is all about driving meaningful change. Their responsibilities revolve around four key areas, each designed to achieve three critical goals: helping the workforce stay flexible, improving how the organization runs, and building a positive, engaging employee experience.
The CHRO is like the go-to person for the CEO, leadership team, and sometimes even the Board when it comes to people strategies. They’re not just about managing HR—they’re about making sure the company’s goals and its people are always on the same page. Plus, they’re constantly keeping tabs on what’s happening in the world that could affect the team or the business.
Think about how the Covid-19 pandemic turned things upside down. For many companies, it meant either quickly switching to remote work or figuring out how to keep frontline workers safe. CHROs were right in the thick of it, helping leaders make decisions that cared for employees’ well-being while keeping the business on track.
In fact, a McKinsey study found that companies with strong HR leadership during the pandemic were 1.5 times more likely to retain their people and keep trust high. It just shows how important it is to have someone who can balance the needs of the business with the needs of its people—because when those two align, great things happen.
The CHRO wears two hats—balancing the needs of employees with the realities of the company’s budget. It’s like steering a ship through unpredictable waters: you have to keep the crew happy while ensuring there’s enough fuel to reach your destination.
A big part of this role involves using the right tools and data to make informed decisions. Think of technology as the compass and analytics as the map—they help HR stay on course. Whether it’s setting up remote work tools or using data to identify cost-effective solutions, the CHRO ensures the HR function runs efficiently without losing sight of people’s needs. According to PwC’s HR Tech Survey, 88% of companies see technology as essential for keeping employees productive and engaged, especially during times of change.
The Covid-19 pandemic was a perfect example of this balance in action. After addressing safety concerns, companies had to quickly set up systems to keep employees connected and motivated, even in uncertain times. HR teams worked overtime, providing training, adapting to new roles, and making sure everything stayed financially sustainable.
A great CHRO goes beyond traditional HR duties—they’re the ones making sure the organization runs smoothly and stays focused on its goals. They step in to tackle big challenges, whether it’s fixing inefficient workflows or addressing gaps in company culture, so everything works better for both the business and its people.
One way CHROs do this is through organizational design. This means looking at how the company is structured and figuring out what’s working—and what’s not. For example, they might identify issues like a lack of diversity or outdated processes, then develop strategies to fix them. According to McKinsey, companies that do this well see up to a 30% improvement in efficiency and engagement, which is a game changer.
If employees feel undervalued or disconnected, the CHRO might create coaching programs for leaders or offer training to address those concerns. It’s not just about boosting morale—these initiatives reduce turnover and build stronger, more engaged teams.
A big part of the CHRO’s role is overseeing the entire talent life cycle—from hiring the right people to helping them grow and thrive within the company. They’re responsible for creating strategies and systems to manage critical areas like:
It’s no small task to get these systems in place, but a strong CHRO will bring expertise in at least a few of these areas. They’ll also have a proven track record of success—backed by experience, measurable achievements, and solid recommendations.
The way we work is changing fast, and HR is at the heart of it all. From managing remote teams to creating more inclusive workplaces, businesses need someone who can take charge of these shifts and make them work for everyone. Here’s why having a CHRO matters:
A CHRO’s role goes beyond managing people—they’re responsible for building strategies that align with the organization’s goals while fostering a thriving workforce. To do this, they rely on key metrics that provide actionable insights into employee engagement, satisfaction, retention, and well-being. Let’s break down the essential ones:
Engaged employees are a company’s greatest asset. They’re more productive, loyal, and deliver better customer service. But keeping people engaged takes a mix of effective communication and understanding human behavior.
How CHROs track it:
Why it matters: According to Gallup, only 30% of US employees feel engaged at work. This highlights why a CHRO must prioritize boosting engagement levels. Strong engagement directly impacts productivity and retention, creating a motivated workforce.
Job satisfaction directly influences how connected employees feel to their work and the organization.
How CHROs track it:
Why it matters: Understanding what drives satisfaction enables CHROs to address pain points and increase employee motivation. Whether it’s recognizing contributions or revising compensation structures, these adjustments can make a big difference in retaining top talent.
When employees leave, it costs the company—financially and culturally. CHROs monitor these rates to understand retention challenges and develop targeted solutions.
How CHROs track it:
Why it matters: High turnover disrupts workflows, impacts morale, and can lead to significant recruitment costs. By identifying patterns and addressing concerns, CHROs create a more stable, committed workforce.
Well-being is the foundation of employee performance and job satisfaction. It encompasses physical, mental, and emotional health.
How CHROs track it:
Why it matters: A healthy workforce is more engaged and productive. By identifying well-being challenges, CHROs can design initiatives like flexible work arrangements, wellness programs, and mental health support to improve overall satisfaction.
Glints TalentHub is our complete talent solution that covers all aspects of talent acquisition, management, and development. Our team can help you access the extensive talent pool across Southeast Asia and build great teams quickly and affordably. Simply schedule a call with us and our dedicated experts will be thrilled to guide you in your journey towards building a borderless team.
This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.
Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.
Schedule a no-obligation consultation with our experts to receive a tailored proposal today!
Never miss a beat! Follow our social media channels for specially curated insights, knowledge and best practices to help you hire, retain and improve on your human capital.
