Does Your Company Need a Chief People Officer? We Think So

HR isn’t just about hiring and firing—it’s about strategically building a team that aligns with your company goals and accelerates growth. 

When you hire the right Chief People Officer (CPO), ​​you bring on board a multifaceted leader who’s part marketer, part strategist, and part coach.

CPOs are the crucial link between your workforce and the executive team. They oversee your employees’ well-being while syncing HR functions with overarching company objectives. They put the “human” into human resources.

The impact? A thriving workplace where everyone, from interns to key stakeholders, feels valued and driven to contribute to the company’s success. 

TL;DR — Key Takeaways

• CPOs are at the heart of company culture, hiring employees that are both talented and organizational fits
• While Chief Human Resource Officers tackle operational tasks, CPOs are focused on high-level, strategic initiatives
• If you’re experiencing transformative changes or spotting weaknesses in your HR department, it might be time to hire a CPO
• Skills-based hiring is one of the best ways to find the right CPO for your company (and Toggl Hire can make the process much more efficient)

What is a Chief People Officer and what do they do?

The Chief People Officer role is an executive-level position responsible for creating a human resources strategy that drives progress toward company goals.

Today’s CPO shapes corporate culture and champions employee development by tailoring recruitment, training, and retention programs to align with business strategy. For example, if a business wants to improve its digital presence, the CPO would create upskilling programs that make current employees more tech-savvy. 

They also focus on increasing employee engagement and ensuring workers are set up for success. For example, they might introduce remote-friendly HR policies when the company’s workforce is scattered globally.

Chief people officers do (much) more than people management. They tackle human resources from a human-centric, strategic viewpoint to ensure employees and the business have everything they need to manage change and business growth.

According to Ewelina Melon, chief people and culture officer, Tidio, “They are responsible for finding the perfect balance between improving a company culture that benefits employees and developing a successful and profitable business.”

Common Chief People Officer responsibilities

Every company is different, but your CPO will likely oversee the following (or some variation of the following).

People development and workforce planning

CPOs design employee development programs by pinpointing skills gaps and setting up relevant training. This forward-thinking strategy prepares the team for future challenges and ensures the company stays competitive.

Diversity and inclusion initiatives

CPOs are at the heart of equitable and inclusive workplaces because they set policies that welcome varied perspectives and backgrounds. A successful DEI initiative could be a mentorship program that pairs senior leaders with employees from underrepresented groups.

This strengthens employee relations through understanding and teamwork and paves the way for growth and success for everyone involved.

Organizational culture

CPOs mold a workplace culture that mirrors the company’s core values. They rely on regular training and clear communication strategies to promote positive traits and curb negative behaviors. Positive reinforcement leaves workers feeling valued, boosting employee engagement and morale.

Talent acquisition

CPOs continuously develop innovative recruitment strategies to snag top talent. Talent acquisition isn’t just about finding the most skilled workers—they must also be a perfect fit for the company’s long-term goals.

This alignment builds a talented team that’s deeply connected to the company’s mission, driving success from the inside out.

Leadership development

CPOs need to be both external and internal talent scouts.

They’re instrumental in preparing high-potential employees for leadership roles and designing development programs, such as mentorship initiatives and leadership training workshops, for internal recruitment.

Succession planning motivates employees because they can see clear career paths and opportunities for advancement within the company.

Performance management

CPOs want to create an environment that encourages continuous feedback and recognition to drive exceptional performance. They do this through various performance management systems, often trying to make them feel more like a two-way conversation rather than a report card.

Compensation and benefits

CPOs oversee the design of compensation packages designed to catch top talent’s eye and keep them happily on board. They balance competitive salaries, enticing benefits, and unique perks to ensure the company stands out in the crowded marketplace.

Change management

CPOs steer the company through sudden market shifts. They keep the team motivated and engaged during these transitions and ensure everything runs smoothly.

Strategic HR planning

CPOs take on a proactive role in creating HR policies that anticipate and adapt to business needs. Their initiatives construct a team that wants to innovate and grow.

CPO vs. CHRO: What’s the difference?

The Chief Human Resources Officer (CHRO) has been around longer than the CPO. Both roles share similarities, but the main difference is that the CHRO role is reactive, while the CPO role is proactive.

CHROs are tasked with day-to-day duties like ensuring HR teams comply with relevant employment laws. 

However, modern organizations put people first to scale their success, and the CPO is at the heart of this. They wear the broad-brimmed strategic hat that complements the CHRO’s operational one. 

Who does the Chief People Officer usually report to?

The CPO reports directly to the company’s CEO and works hand-in-hand with the rest of the C-suite team. This collaboration keeps HR strategies in sync with the broader business objectives. Why?​​​​ 👇

Our study findings reveal how rapid technological innovation and the democratization of work are expanding the role of the CPO. In this more expansive role, the CPO serves as the architect of new strategic initiatives, anticipating workplace trends and challenges, proactively advising the CEO and the board, and shaping talent and work solutions that fuel business growth.

SHRM

How much does a Chief People Officer make?

The average Chief People Officer salary differs from country to country but is mostly six figures or more.

• In the US, the average annual salary for a CPO is $202,929
• In the UK, it ranges between £89,000 to £188,000
• In Germany, the average salary is EUR157,473
• In India, the range extends between ₹7L – ₹30.0L
• In Australia, the range is from A$185,000 and A$250,000
• In Colombia, the average is COP126,326,261

6 signs it’s time to hire a Chief People Officer

Now that we’ve cleared the logistics, it’s time to get serious and answer the burning question: Do you need a Chief People Officer?

We love our Head of People and believe they are integral to building the culture that makes Toggl so unique. However, we understand that not every business needs a person in a role like this.

There’s really no standard team size or revenue that indicates it’s time to bring on a CPO. Everyone’s circumstances are different. Check out these example situations—and if you find yourself nodding along, that might be your sign to start looking for a CPO.

1. You’re about to hit a high-growth phase

An acceleration in revenue or market expansion is great news, yet it can also bring a whirlwind of challenges as your operations and workforce must scale quickly to keep up with the demand.

If you sense this phase is rapidly approaching, hiring a CPO can put you at ease with workforce planning. You can feel more confident knowing they’re nurturing a motivated, supported team to meet these new needs.

2. Your company culture needs a shake-up

If your leadership team is the only function that cares about the company’s mission, or you’re experiencing rapid turnover, it may be time to reassess your hiring strategy. 

A CPO can identify candidates who are great culture fits, not just tactical hires. Implementing a proper talent management strategy can increase retention and improve overall employee well-being. The cost of hiring an employee isn’t cheap, so it’s best to hire superb talent who’s in it for the long haul. 

3. You need to invest in your human capital

Executive-level leaders don’t typically have the time to be drivers of career development opportunities or training programs. They’re better off acting like a consultant.

A CPO can promote growth internally, allowing your company to scale and retain top talent via internal mobility programs.

4. You need to drive transformational changes

All companies will experience change at some point, whether that be a big shift like a merger or acquisition or something internal like a digital transformation.

A CPO is integral in managing the change, ensuring your employees are supported throughout the process and any period of adjustment.

5. You’re experiencing HR department challenges

Many companies have great HR management and leaders, but not enough experience executing strategic initiatives. According to Gartner, a shocking 47% of HR leaders don’t know how to drive change to achieve the desired culture.

Bringing in a CPO with years of experience can free up the HR department’s time. Now, they can focus on operational and routine tasks rather than strategic problem-solving.

​​To keep up with the changing work environment, it’s more important than ever for people leaders (and employees) to plan more thoughtfully and clearly communicate expectations to achieve the best results. It is a constant adjustment — no workplace model will work forever. What works today, might need to be adjusted in four months.

Miriam Partington, Sifted

6. You need to focus on lifecycle management

The employee lifecycle is just as important as the customer lifecycle—after all, happy employees create satisfied customers. With a CPO at the helm, your people strategy is in the right hands.

However, a CPO needs to have many skill sets as they facilitate everything from onboarding to offboarding. If you’re having trouble with one (or all) stages of the employee lifecycle, that’s your sign to consider hiring a CPO. They can help you build a data-driven recruiting funnel.

The role of a Chief of Staff can be quite dynamic and multifaceted. On one end of the spectrum, you might find yourself being a secretary on steroids, while on the other end, you could be taking on the responsibilities closer to a Chief Operations Officer or Chief Strategy Officer. However, more commonly, the Chief of Staff serves as a versatile generalist, navigating the company’s various departments and acting as the glue that holds everything together.

Antoni Olendzki

How to hire a great Chief People Officer: Tips from our Head of People

Just as the CPO ensures new hires are a great cultural fit, you need to make sure you’re hiring the right CPO for your organization. How do you do that? We spoke to Toggl’s Head of People, and here’s what she recommends.

Identify the right skills for your organization

Talented CPOs will have the same basic skills: great emotional intelligence, business acumen, interpersonal skills, HR expertise, and solid communication skills.

But, you need to identify the specific skills that’ll allow this new hire—and your company—to thrive. We recommend using full-cycle recruitment software (like Toggl Hire) to save time during the process and hire confidently.

To be sure you’re hiring the right CPO, you first need to craft a job description that hits all the key responsibilities for the role. Then, conduct a targeted skills assessment test to evaluate leadership skills and get an idea of their decision-making process. This test should focus on critical competencies like:

• Strategic thinking
• Data analysis
• Change management

When you take a skills-based hiring approach, you broaden your talent pool. Maybe the right CPO doesn’t have a bachelor’s degree or master’s degree in human management, but they have all the skills you’re looking for.

Skills-based hiring boosts retention rates, making it a win-win for employees and employers.

Whatever approach you take, though, include department heads in the hiring process. Their input will ensure that potential candidates’ skills align with your business’s current objectives and evolving challenges.

Behavioral interviews can gauge a candidate’s capabilities in the identified areas. Check out our article for some ideas on what behavioral interview questions to ask. 

Ensure cultural fit and strategic vision alignment

The CPO serves as both a role model and overseer of your company culture. You should have the utmost confidence in your CPO’s abilities here, as they ultimately shape the employee experience.

On top of being an organizational culture fit, CPO candidates must display a strategic vision in sync with your company’s long-term objectives. Try out some of these methods to assess both cultural and strategic fit:

• Scenario-based interviews: Role-play specific situations candidates will likely face in the position. See how their responses align with your mission.
• Cultural fit panels: Gather your department heads to get diverse perspectives on candidates’ compatibility with the company.
• Homework assignments: Build custom take-home tasks to assess candidates’ ability to contribute to your growth trajectory. Or, pick a ready-made assignment from Toggl’s homework template gallery. 

Hire great talent with Toggl Hire

Off-the-shelf candidate assessments don’t give you the unique insights you need when hiring a CPO. To fill a role as influential as a CPO, you need to hire with confidence. 

And to hire with confidence, you need Toggl Hire.

Automated, expert-created skills assessments and data-driven insights help you make confident hiring decisions for critical roles like this. Ready to find your best-fit candidate? Try skills-first, full-cycle hiring with Toggl Hire and create your free account today!