Having a Chief People Officer (CPO) in your business could be a game changer for businesses struggling with people management. In particular, in today’s constantly changing and evolving business landscape, a CPO could be that helping hand to keep your business afloat, especially when it comes to your employees.
So, why does your business need a CPO?
In this blog, we will cover what a CPO is, their role and responsibilities, and why they are important for any business. Don’t stop reading!
What is a Chief People Officer?
A Chief People Officer, sometimes abbreviated as CPO (not to be confused with Chief Product Officer), is a person who is responsible for developing and maintaining the strategies, policies, and processes in place relating to the growth and retainment of the business’ most valuable assets – its people.
The main duties of a CPO can vary depending on the needs of the organisation, but some of their key responsibilities include:
- Creating a company culture that fosters innovation, collaboration, and employee engagement
- Identifying areas of improvement regarding the organisation’s talent pool
- Planning and executing initiatives on diversity, inclusion, and equity
- Implementing human resources (HR) strategies in line with organisational values and goals
- Managing and overseeing employee benefit and employee reward programmes
- Ensuring that compliance with HR related regulations and policies are met
As you can see, the CPO appears to have a crucial role in a business’ processes in terms of managing their employees. A CPO will often be a senior executive, most likely to be working alongside the CEO of the company. This means that a CPO will usually be a person with valuable experience and expertise in their field. In fact, in one survey, understanding and analysing data and people analytics is a skill that 90% of respondents cited as being important for a CPO to have.
Is it the same as a Chief Human Resources Officer?
Although a CPO and a Chief Human Resources Officer (CHRO) are terms and titles that are often used interchangeably, the latter is increasingly being seen as a legacy term, with the former being what is now considered as the modern CHRO.
CPOs and CHROs are similar to an extent, but in today’s business world, CPOs take on more responsibilities than a CHRO traditionally would have – especially when it comes to cultivating the company culture.
Why is a Chief People Officer important for businesses?
Since the COVID-19 pandemic and today’s cost-of-living crisis, the importance of having a CPO within businesses is increasingly being acknowledged. An excellent CPO not only helps to effectively manage the company’s employees, but it also focuses on building the company’s brand and image to attract the top talent.
Whether that’s focusing on implementing valuable employee benefits schemes that include employee benefits insurance, flexible working hours, private healthcare, and more, or simply developing better methods in retaining employees, a CPO’s role is critical in any business.
As more awareness is being raised on mental health and wellbeing in the workplace, a CPO is a person with high emotional intelligence who’s able to respond to these demands and meet the needs of the business’ people.