What is a CHRO | 2025 Guide to Skills, Responsibilities, Salaries, & More
A CHRO is responsible for managing, acquiring, and developing organizational talent. Learn more about a CHRO’s responsibilities and how to hire a CHRO.
May 9th, 2025
A CHRO is a senior executive responsible for overseeing all aspects of an organization's human resource management, including talent acquisition, employee development, and compensation. The CHRO plays a strategic role in designing and implementing HR policies that meet business goals and foster an engaged workforce.
What does CHRO stand for?
CHRO stands for "Chief Human Resources Officer."
What does a CHRO do, exactly?
As executive people leaders, CHROs can wear many hats. And, with a growing remote workforce and evolving AI tools, their roles are always changing. In years past, CHROs might've been seen as just administrators, dispute managers, and the people you go to for questions about benefits packages. But now, they're considered strategic leaders with the power to build company culture and implement processes that retain top talent.
What services does a CHRO provide?
Successful CHROs are responsible for managing one of the most important and complex assets of an entire organization: the people. To that end, CHROs can support organizations by providing a range of critical services, including:
- Talent management and acquisition: CHROs develop strategies to attract, hire, onboard, and retain the right employees. This goes beyond just creating a smooth recruitment process. CHROs also have to continuously nurture employees and make sure they have the support to succeed in their careers.
- Company culture development: CHROs help manage company culture by setting standards and shared values that create a welcoming and productive workplace---in-person, hybrid, or remote.
- Compliance and legal oversight: Since labor laws and regulations are always changing, CHROs have to ensure their organization complies with these standards, like anti-discrimination laws, safety requirements, and privacy regulations.
- Leadership training and succession planning: As HR executives, CHROs can implement learning and professional development programs, prepping talent to meet future business needs. According to the Society for Human Resource Management (SHRM), more than half of CHROs are prioritizing this service for 2025.
- Change management: CHROs can collaborate with other C-suite executives to navigate organizational changes, like mergers and acquisitions, and keep employees engaged and satisfied in their roles.
- Technological innovation: CHROs have their fingers on the pulse of changing HR tools and trends, suggesting new technologies to improve talent acquisition and retention. As SHRM reported, 90% of CHROs expect AI integrations to become more widespread in their field.
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What skills do CHROs need to succeed?
Even in their high-level positions, CHROs can't just bury their heads in data platforms and strategy meetings. They often have to be on the front lines, ready to nurture talent and build direct relationships with employees and team leaders.
Essentially, they need the skills to help other people develop skills and advance their careers. To make that happen, CHROs should be equipped with key competencies like:
- Strategic business skills: CHROs must be able to connect their people strategies to business results and boost company performance.
- Leadership skills: Basically, CHROs are the ultimate team leaders, responsible for helping people at all levels succeed in their roles---from other executives and managers to newly hired employees.
- Decision-making skills: CHROs have to use HR analytics to make data-backed decisions, predict workforce trends, and measure the impact of their initiatives.
- Emotional intelligence: Beyond just building strategies, CHROs need the communication and EQ skills to manage relationships and resolve conflicts. They must be ready to hear and understand employees' needs across the organization.
- Technical skills: CHROs should be consistently up to date with HR technologies and AI-driven tools to optimize their processes. As PwC reported, for example, 84% of CHROs say they're increasing investments in skills-based talent architectures to create a more engaged workforce.
What's the difference between a CHRO and a CPO?
The titles CHRO and chief people officer (CPO) are often used interchangeably. But the truth is they can be distinct roles within an organization. A CHRO, for instance, is usually responsible for managing all aspects of the HR department, like employee acquisition, compensation, and leadership development. And they're tasked with developing efficient, data-driven strategies to meet specific business goals.
A CPO, on the other hand, often takes a broader approach, focusing more on building company culture and employee engagement. So instead of optimizing benefits offerings and succession plans, they might work on creating a productive and supportive work environment to foster innovation. They also might be called in to help navigate major changes, like going remote or expanding rapidly, and ensure long-term growth.
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Who does a CHRO report to?
The CHRO usually reports directly to the CEO. With a seat in the C-suite, CHROs are strategic partners who advise other executives on the best talent management and development strategies. In some organizations, however, the CHRO might also report to other executives like the chief operating officer (COO), who's often considered the number-two to the CEO.
Who reports to a CHRO?
The CHRO typically oversees a range of senior HR leaders and teams. In their never-ending quest to build and optimize an organization's workforce, they might receive direct reports from the HR director, VP of HR, compensation and benefits managers, talent acquisition managers, health and safety officers, and diversity, equity, and inclusion (DEI) leaders.
How does someone build a career as a CHRO?
Since the CHRO role combines a lot of different skills and responsibilities, people can take varying paths to get to this executive position. Typically, however, the steps to building a CHRO career include:
- Degree programs: According to The Talent Strategy Group, a whopping 100% of people appointed CHROs and CPOs in 2023 had at least a bachelor's degree in a field like psychology, political science, or economics. Meanwhile 77% held at least one advanced degree, like a master's in human resources, legal degree, or MBA.
- Relevant work experience: Future CHROs might start their careers in lower-level roles like HR coordinator or benefits administrator, and then move on to leadership positions like HR manager and director of HR. Some HR execs might also have experience in other departments, like finance or operations.
- Certifications: CHROs might earn specialized credentials like SHRM-SCP or SPHR to enhance their skills and prove their expertise.
What is the difference between a CHRO and a fractional CHRO?
Traditionally, CHROs are full-time, internal executives who are deeply integrated into their company's leadership team. Fractional CHROs, on the other hand, provide the same level of expertise and strategic guidance, but they work on a part-time or project basis instead of as a permanent employee.
That's why fractional CHROs are usually brought on to help companies that need HR leadership but don't need---or can't support---a full-time hire. Unlike traditional CHROs, these fractional executives offer flexibility and cost savings, making them ideal for companies navigating transitions or growth phases.
- Fractional Head of People
- Head of People
- Advisor
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How do I hire a full-time CHRO?
So, how do you make the right hiring decision to hire the person responsible for overseeing hiring decisions? Unsurprisingly, this can be a complex and time-consuming process, often taking several months. As with any new executive hire, bringing on a CHRO requires a great deal of planning, due diligence, and decision-making from organizational leaders.
First, hiring teams and other executives will have to audit their HR needs and establish what they want from this new C-suite member. Then they have to go through the motions of creating a job description and leveraging job boards, executive search firms, or other professional networks to find quality candidates.
Once those candidates are found, the rigorous vetting and interviewing process begins. After board members and stakeholders come to an agreement on their top choices, they have to craft competitive offers and compensation packages. With contracts signed, the CHRO can begin the onboarding process to become acclimated to the internal systems, databases, and standards of their new company---and finally get to work.
How much does it cost to hire a CHRO?
The average CHRO salary is $318,000, but it typically ranges from $292,000 to $358,000. Of course, the overall cost to hire a CHRO can vary widely based on each executive's skills, experience, location, and industry. Beyond just their annual salary, CHROs are also usually compensated with benefits packages, stock options, and bonuses.
Why should I hire a fractional CHRO?
Fractional CHROs are a natural progression from full-time CHROs, especially if organizations don't have the resources to support their people-focused executives. As SHRM found, 31% of CHROs said HR budget constraints and limited resources were their biggest challenges in their roles.
Evidently, many companies are struggling to give their full-time HR leaders the tools they need to succeed and make an impact. That's where the fractional model can help. It presents a more affordable and flexible alternative to the traditional route of making a full-time hire.
By going fractional, organizations can bring on and scale their executive talent as needed, paying hourly, per project, or on a monthly retainer---no benefits packages or bonuses required. Many fractional CHROs also bring vast experience from across industries and companies, since they're not tied down by the needs of one organization. Plus, as outside hires, fractional CHROs can bring a fresh, unbiased perspective to each company's needs, using the latest trends and tools to help them optimize their talent management and fuel growth.
Ready to find your next top-tier HR leader? Learn more about how to hire fractional CHRO for your business.
