Managerial hierarchies exist in nearly every department of a company, and the Chief Human Resource Officer (CHRO) is the highest position within a human resources department. The CHRO is responsible for overseeing the human resources department and can assist with the overall efficiency of how a company runs.

Smaller companies or start-up businesses might not have the resources to fully fund a CHRO position, so fractional CHROs can be hired to temporarily fill this role. This article will look more closely at typically business hierarchies and examine how fractional CHROs function within a company.

Hierarchies in a Company

Many companies follow a hierarchy that includes employees, first level management, middle management, and top level management such as CEOs, COOs, Managing Directors, Presidents, and Vice Presidents. It should come as no surprise that human resource departments within companies follow a similar structure.

HR specialists complete day-to-day administrative tasks such as processing payroll while  recruiters post job ads, conduct screening interviews, and coordinate background checks for job candidates. HR managers are the next level up, and they oversee specialists and recruiters while also looking for ways to improve HR workflow and processes.

The level above HR managers are HR executives. These individuals look broadly at company policies and analyze whether they are working effectively for employees. The CHRO sits at the top of the human resources hierarchy and oversees all aspects of a human resources department.

Responsibilities of a Chief Human Resource Officer

The work of a CHRO includes supervising the work of specialists and recruiters as well as working with managers and executives to create and implement policies that help the company achieve its goals, whether through higher employee productivity, cost-effectiveness, or efficacy in overall organization.

Because CHROs are in charge of all aspects of a human resources department, leadership and collaboration are crucial characteristics in this role. The CHRO must be able to communicate vertically among all levels of the human resources department as well as horizontally with other departments in the company. In some companies, the CHRO is seen as a key advisor to the CEO with the ability to synthesize information and advise the CEO about risks and opportunities.

CHROs also shoulder unique responsibilities due to globalization. They must have a thorough understanding of a company’s human capital requirements – hiring initiatives, training, and development – yet they must also be able to translate these requirements on a global level. Gone are the days of a few local HR departments headed by one administrative office; today entire companies can be spread out across the globe with a mix of part-time and full-time employees working in-office or remotely.

Technological advancements have also presented new challenges for CHROs. While they might not fully understand the science behind artificial intelligence, blockchain, machine learning, or automated processes, CHROs must understand that these digital transformations have a direct impact on their human resource department as well as their company. CHROs must be willing to adapt and incorporate these technologies into their companies as this technology becomes more common and mainstream.

Fractional CHROs

Companies without a CHRO can take advantage of a fractional executive who can assume the role of a CHRO but not be a permanent fixture in the company. The term “fractional executive” refers to individuals who work part-time in an executive capacity. Because they only spend a fraction of their time with a particular company, they act more like consultants instead of full-time executives.

One of the main reasons for hiring fractional executives over traditional executives is cost. The average salary of a CHRO is $150,513 which might be a steep cost for companies which have just formed. By hiring a fractional CHRO, companies can greatly save on payroll, taxes, retirement benefits, and hiring expenses.

Additionally, smaller companies might find that they do not require a dedicated CHRO and that hiring a fractional CHRO for certain projects or durations will perfectly suit a company’s needs. Fractional CHROs are often seasoned professionals with years of HR experience looking to tackle new projects and challenges, and they are often able to begin working more quickly than traditional executives who must go through a company’s full training process.

Whether a company is tackling a new project, is growing rapidly, or is having trouble retaining employees, fractional CHROs can assist companies in all sizes in a variety of situations. Just like regular CHROs, these fractional executives can work on both macro levels and micro levels within a company.

Macro tasks include acting as a strategic business advisor, assisting with human capital planning, defining a company’s mission, transforming processes and workflow, and setting up policies and procedures. Micro tasks include crafting employee benefit plans, promoting diversity in hiring practices and culture, choosing new software and implementing it across the company, and ensuring that the company is staying compliant with state and federal regulations.

Bhr Consulting

There are many benefits to hiring a fractional CHRO for your company. With years of experience at companies like Encoda Systems, Adeptus Health, and TridentUSA Health Services, Bhr Consulting can provide a cost-effective and experienced CHRO for your organization. Contact us today to discover how we can transform your human resources department!