Chief people officer touted as a pathway towards CEO role 

The role of a chief people officer is becoming incredibly critical to the operational aspects of a business, with the workers residing in these roles taking on a number of added duties.

A new report from Hays has touched on the growing importance of chief people officers (CPOs) throughout Australian organisations, with many moving beyond the traditional HR parameters.

The report found that 85 per cent of CPOs are focused on upskilling, focusing on strategic leadership, influencing decision making, and aligning HR strategies with overall business objectives.

According to the findings, a chief people officer is in more demand than ever, with one of the survey respondents stating: “There is only going to be an increased requirement for C-suite HR professionals.”

At the same time, two-thirds of CPOs are considering leaving their roles, seeking out better corporate culture, more meaningful responsibilities, and improved work/life balance. Intertwined with this employee turnover was the finding that 62 per cent of senior HR professionals are finding it increasingly difficult to source skilled talent.

“The chief people officer role has broadened in terms of remit and accountabilities. HR leaders are now heavily involved in business strategy, culture, and operational decision making,” said Eliza Kirkby, managing director at Hays Australia and New Zealand.

“This shift means they must not only understand people but also drive transformation at the highest level.”

In terms of finding the right talent for these roles, many of the respondents pointed towards employee value proposition (EVP) as being a key pathway to attracting the needed talent. Not having EVP at the forefront of recruitment or retention strategies can be an organisation’s downfall, according to the report.

“You ignore the EVP at your peril. In a market where skills shortages are rife and labour costs are rising, top talent have the ability to shop around – it’s important they know instantly why working for you is their best option,” said the report.

Kirkby said: “Chief people officers are clearly busier than ever, with large-scale business transformation, compliance, and leadership responsibilities now at the core of their role. However, with two-thirds considering a career move, organisations must focus on supporting and retaining their senior HR talent.”

Residing in the CPO role for an extended time can offer insight into how the business operates – carving out a pathway towards more senior roles in the future. Leon Izmiritlian, executive general manager of people and operational services at DT Infrastructure, who’s featured in the report, noted that the CPO experience can directly lead to a CEO role.

“It’s starting to become that way because the HR remit now has a strong interface to all aspects of the business functions. It’s a good role to get into to get a complete understanding of an entire business,” said Izmiritlian.

“You definitely need to be able to have strong influencing skills, be highly collaborative and proactive, as you’re intersecting into so many other areas of the business, you have to ensure you’ve got a holistic understanding.”

“The stereotype of the old personnel manager has definitely changed, and you play a greater role at the exec table now.”