The power of people within an organization has never been more evident. In fact, “given the growing importance of the human element at work and the continued gap in HR readiness, will HR remain as a distinct function?” That is a “fundamental question” raised by Deloitte’s 2020 Global Human Capital Trends report, according to Deloitte’s Human Capital experts conducting the annual global survey.
The report findings indicate that 75% of respondents feel “the evolving role of HR [is] important or very important for their success over the next 12 to 18 months, but only 11% say they [are] very ready to address this trend.”
Effectively addressing this trend requires investment from the top of an organization, and to make this happen, many companies are turning to the emerging C-suite position of chief people officer.
What is a Chief People Officer?
The chief people officer (CPO) is responsible for coordinating and overseeing all of an organization’s human resources efforts, such as hiring and retaining employees, creating development opportunities and fostering a productive corporate culture.
The CPO sits at the table with other C-suite executives, such as chief operating officer (COO) and chief financial officer (CFO), focusing on big-picture, strategic issues, rather than day-to-day operations The CPO usually oversees direct reports from the HR department, such as managers or directors of human resources, talent acquisition, benefits and training and development. Previously, these duties were often held by a director or vice president of human resources.
The chief people officer is a newer role at many organizations, as companies now see the need to elevate the role of HR because of its strategic importance, particularly for organizations wanting to become more employee-centric with their human resources departments.
What Does a Chief People Officer Do?
As this is a more strategic role in an emerging field, today’s CPOs are blazing the path for what the position can be for their organizations.
“There are no typical days for me, and I love that!” says Kathleen Hogan, Chief People Officer and Executive Vice President of HR at Microsoft, emphasizing, “I wear many hats.”
As Hogan can attest, the chief people officer has many different duties in their day-to-day, which can range based on the organization’s needs and structures. Some of a CPOs duties may include:
- Communicating with other top-level executives to facilitate organizational change
- Creating a communication strategy for remote workers (even more critical as remote work has become the standard due to the COVID-19 pandemic)
- Establishing a feeling of community among company employees
- Encouraging collaboration with employees to complete projects efficiently
- Finding ways to guide employees toward making ethical choices in the workplace
- Offering coaching and/or mentoring programs within the organization
- Facilitating learning and development strategies
- Leading organizational change management
- Increasing employee retention and engagement rates
There may be many more tasks that a CPO will take on during their tenure since the role and responsibilities of the chief people officer continue to evolve.
While the core of Kathleen Hogan’s role at Microsoft is leading HR, it’s also about representing employees, as she explains: “My job is really to listen and learn from them and make decisions that help us create an empowering culture where everyone can do their best work.”
What is the Career and Salary Outlook for a Chief People Officer?
According to the Bureau of Labor Statistics, top executive positions should grow by 4% through 2029, about as fast as the average growth for most occupations.* However, for the role of chief people officer, the outlook is far more fluid. As the organizational role of human resources overall continues to evolve and the workforce picture continues to be shaped by the global pandemic, the position of chief people officer will more than likely continue to grow.
Not surprisingly, top executive positions are among the highest paid, with a median annual wage of $184,460 as of May 2019.* For chief people officers, the average annual salary is $150,517, according to PayScale.
Less pay and less respect when compared to the other executive leadership roles can occur, as the CPO often struggles to be seen as “equals” with more traditional C-level roles, such as COO and CFO. Those “function and facts” leaders of operations and finance may see the chief people officer, and all things HR, as being more “touchy feely,” especially in more established companies.
While the importance of giving HR a seat in the C-suite is being realized by more and more organizations, only a small percentage of companies have this executive-level position, so the availability of CPO roles and competition for them can be tight.
How Do I Become a Chief People Officer?
As this is a role that continues to evolve and is very much tied to an organization’s culture, strategy and needs, there is no fixed path towards becoming a chief people officer.
Most C-level executives have at least a bachelor’s degree, but many go on to earn a master’s degree. Many top executives of large corporations may have a master’s degree in business administration (MBA) with a concentration related to their role. For example, chief financial officers may have an MBA in accounting and finance. For aspiring chief people officers, a master’s in organizational leadership may be the ideal fit.
Continual education and development are critical for this executive leadership role, and substantial years of experience in the workplace, particularly in human resources management, may be the best professional preparation for the role of chief people officer.
Is Chief People Officer a Good Career Choice?
The most important asset in any organization is its people. Combine that with the ever-growing people needs and evolving employee expectations, particularly in the face of COVID-19, and you see the impact the role of chief people officer can have on the culture, trajectory and even bottom line of an organization.
For those with a passion for people, a strategic mindset and the desire to make an impact on every level of an organization, the chief people officer could be a good career choice for the right individual with the right experience and education.
If you aspire to become a chief people officer and want to invest in your development as a leader, earning your MA in Organizational Leadership from Florida Tech could be your next step!
*Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Management Occupations. Top Executives. https://www.bls.gov/ooh/management/top-executives.htm. (accessed September 24, 2020).
National long-term projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Information provided is not intended to represent a complete list of hiring companies or job titles, and degree program options do not guarantee career or salary outcomes. Students should conduct independent research on specific employment information.
