3 Reasons why your growing business needs a CHRO Today

3 Reasons why your growing business needs a CHRO Today


In today's competitive business human resources are one of the most important parts of an organization driving the success of the organization. It's critical to hire the right talent, nurture talent, and provide an objective, fair, and transparent work environment. To achieve this, role of a chief human resource officer (CHRO) becomes critical, who is primarily responsible to take a wide, deep and long-term view of the organization, plan and execute policies to drive the organization to meet its goals from an HR perspective.

A CHRO is an indispensable position that every successful company possesses. The roles of the Chief Human Resources Officer (CHRO) have shifted dramatically in today’s downturn. Aside from that, having a CHRO has become a requirement. This is to maintain vigilance over the variety of responsibilities that lie under the HR umbrella. With the changing trends in the corporate and business worlds, all CHROs must step up their game

Problems faced by small businesses without CHRO

The lack of the CHRO can create certain problems in a growing business. Some of such problems are like:

Inefficient Recruitment Strategy

Finding an employee with relevant experience, skill, and mindset is a crucial factor. Because hiring an experienced employee and an inexperienced one on the same level is one of the root causes of people's issues. Hence, for small businesses, finding a perfect job-fit candidate that is too within a budget is a challenge.

Inadequate Training Exposure

Besides basic eligibility, additional training is inevitable for staff members to grow together as a team. So, it requires effort, time, and proper exposure spent on recruits.

However, due to improper management and staff, employees in small businesses sometimes suffer and fail to match up the pace. It ultimately raises people's issues and creates conflicts among employees. In such situation, CHRO has a great impact.

Why do small businesses face people's issues?

There may be various reasons for small businesses facing such issues. But we can point out some major reasons that are mostly responsible for creating problems in a growing business:

Presence of inexperienced HR Staff

If people are considered the backbone of any business, then HR must be given a place in the brain. Because HR hires people, takes care of their retention, training, and manages the workforce to achieve long-term goals.

Thus, HR must be professionally skilled, decisive, and well-experienced. It enables a small business owner to address, resolve, and even prevent people's issues.

Absence of Standard HR Policies

Standard HR policies hold the potential of making or breaking a business. They are responsible for proper management of an organization, employee profile, and facilitating employee needs.

Thus, if a business lacks standard HR policies, then a disbalance between the company’s goal and employee’s performance is certain to prevail. Also, it shows a non-strategic perspective leading to people issues and ultimately to organizational collapse.

Having inexperienced CHRO

Having an experienced CHRO in a team can do wonders for building a people strategy.

As a result, hiring an inexperienced officer cannot help you in developing the required positive mindset for an entrepreneur. Besides mentoring, maintaining confidential relations, and overseeing HR functions, an inexperienced CHRO will not be able to set up an organizational culture to help build a winning team.

Need of CHRO in a Start-up or Small businesses

The importance or need of CHRO in a start-up or small business are:

1. Strategic Planning

CHRO contributes to the company's bottom line through understanding how human capital influences organizational success. CHRO assists in strategic management and corporate decision-making. It underpins current engagement evaluations and future workforce predictions based on business demand.

2. Considering the Advantages

CHRO can analyse the benefits and can help cut the costs of turnover, attrition, and replacing employees. A CHRO is crucial to the organization because they have the skills and ability to negotiate group benefits packages for employees that are both within the company's budget and in line with market realities. The CHRO can also identify which employee benefits are most likely to attract and retain employees. This can help the organization save money on turnover, attrition, and replacing staff.

3. Risk Management and Safety

Human Resource management owes it to their employees to ensure a safe work environment. CHRO train, spread awareness and keep a close eye on maintaining safety in the work atmosphere. Employees are also involved in increasing knowledge and safe management of hazardous chemicals and equipment by CHRO.

Moreover, In the HR department, every company requires a chief human resource officer. This has become a crucial requirement in these ever-changing times. The enterprises that will emerge in 2021 will be in desperate need of a strategic plan for effective management. This is only possible with the involvement of a managing director and the HR department's chief. Employees that are happy, talented, and fulfilled are the Foundation of a successful firm. The CHRO is in charge of all policies and strategies that contribute to this goal.


Lastly, you cannot deny the importance of CHRO in a business. The Chief Human Resources Officer must stay current with industry developments and best practices. It entails doing whatever it takes to ensure the HR department's best functioning.

CHRO's role also includes working towards creating an objective, fair and transparent organization by creating the right functional and behaviour metrics with the right tools to capture and analyse the metrics.

About the Author

Ratnesh Jain is helping businesses succeed and making it happen for entrepreneurs. Runs a 15-year-old Boutique Executive Search & Talent Acquisition firm. Is Strategic Advisor to few growing companies. IIM Ahmedabad alumnus with 30+ yrs of professional and entrepreneurship experience in executive search, business consulting, fintech, Retail banking, FMCG, telecom, education, and wellness.

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