What is a Chief Human Resources Officer (CHRO) – And Why a Fractional CHRO Could Transform Your People Strategy

With hybrid and remote work on the rise, skills gaps widening, constant organisational change to contend with, expanding teams and changing employee expectations, people strategy has never been more important for businesses of all sizes. Not only when it comes to keeping the business running smoothly, but also capturing the attention of skilled workers in a competitive talent market. This is why building a people strategy that drives sustainable growth is key. Unfortunately, that’s not easy to navigate alone. When you have an entire business to run, it’s hard to make people leadership a priority, but that’s where a Chief Human Resources Officer (CHRO) comes in.  

CHROs are responsible for aligning people, culture and business performance. But, what happens if your business can’t currently cover the cost of hiring a full-time CHRO? What if you can’t commit to a permanent CHRO working five days a week? What if you need HR leadership help, but you don’t need it every day or for very long? A fractional CHRO could be just what you’re looking for.  

What Does a Chief Human Resources Officer (CHRO) Do? 

A CHRO leads the HR department of a business. They’re not just responsible for the day-to-day HR processes, they build the systems, people strategies and culture that allow businesses to thrive. There’s a lot that goes into what a CHRO does, ranging from building the right team at the right time to ensure business goals are met, to ensuring future leaders are being developed and are ready to take over when others leave.
 

A CHRO bridges the gap between business strategy and people strategy, structuring teams and workflows in a way that supports efficiency and growth. They create a workplace where employees are motivated, connected and aligned with your values, designing structures that encourage accountability and reward excellence.  

The Importance of Having a People Strategy That Works for Your Business 

A people strategy sets out how a business manages its people. It defines how you attract talent, retain and engage employees, and develop your workforce in a way that aligns with your business goals. Everything from ensuring talent acquisition aligns with business values and growth plans, to employee training and learning opportunities, are factored into your people strategy.  

The right people strategy ensures that every employee interaction, from recruitment to retirement, goes towards business success. If you’re not in a position to commit to a full-time and permanent CHRO, the same benefits can be achieved from working with a fractional CHRO. 

Fractional CHROs vs. Full-Time CHROs 

CHROs are HR executives who provide strategic leadership, and fractional CHROs do this on a part-time, project or contract basis. They provide the same expertise as a full-time CHRO, but in a more flexible and cost-effective way. Instead of working with your business full-time, they work with multiple businesses, stepping in as little or as much as you need. This could be for a few hours per month, or for several days each week. It all depends on your business’ needs. With so much flexibility, you’re able to scale HR leadership up or down as your business evolves, all without having to worry about the cost of a full-time, permanent hire. 

CHROs always used to be long-term, full-time members of a business’ leadership team. They were part of the day-to-day operations and decision-making, leading a large HR department, managing recruitment budgets, and they were involved in every aspect of people management. Fractional CHROs do a similar job, but they also provide bespoke, strategic support where it’s needed most. Instead of managing day-to-day HR issues, they focus on building frameworks, perfecting your people strategy and empowering your existing HR team. 

• Fractional CHROs work on a part-time or project basis, often for multiple clients at once, whereas full-time CHROs work for one business.
   

• Fractional CHROs focus on putting strategic initiatives in place – including restructuring, scaling systems or leading change – whereas full-time CHROs focus on daily HR.
   

• Fractional CHROs offer access to senior leadership expertise without the cost of a full-time salary, benefits and long-term commitment.
   

• Fractional CHROs are onboarded quickly to address immediate needs, whereas hiring a full-time CHRO can be a lengthy, stressful process and there’s no guarantee that you’ll choose the right person. 

Though both types of CHRO bring value to a business, the fractional approach offers agility, affordability and speed to businesses that aren’t ready to commit to a permanent hire. 

When and Why Businesses Hire Fractional CHROs 

A growing number of businesses are enjoying the benefits of fractional leadership, especially when it comes to CHROs. During key moments of growth or change, a fractional CHRO provides the experience needed to help your business navigate an evolving people strategy with confidence. 

• A startup or small business might use a fractional CHRO when they’re lacking HR structure, needing them to design staff systems and processes that scale. 

• For businesses in a growth phase, a CHRO helps to restructure teams, establish leadership frameworks and align HR practices with business goals as the team grows. 

• Mergers, acquisitions and reorganisations often require expert guidance to maintain company culture and continuity, and fractional CHROs are there so people don’t suffer when everything is changing around them. 

• From implementing a new HR system and updating compliance practices, to developing a succession plan, fractional CHROs can step in and execute specific projects with unmatched precision. 

• Businesses on the lookout for investors often hire fractional CHROs to formalise HR operations, ensuring people practices showcase organisational maturity and give investors confidence in the team’s ability to scale.
   

As fractional CHROs aren’t bound to one business, they bring fresh perspectives and experience from different industries to the table. They apply proven strategies from various business environments, and tailor them to your unique challenges. 

How a Fractional CHRO Can Transform Your People Strategy 

• Strategic Alignment – Fractional CHROs align HR initiatives with your business goals, ensuring every hire, staff policy and program drives measurable results. 

• Scalable Infrastructure – They design repeatable, efficient processes for recruitment, onboarding and performance management, ensuring all systems can grow as your business does. 

• Culture and Engagement – Fractional CHROs help to define your company culture intentionally, rather than hoping for the best and letting it evolve by itself. They build programs that reinforce values and drive engagement, ensuring the company culture is perfect for your team. 

• Leadership Development – They coach executives and managers to lead effectively, helping new leaders to transition from operational employees to strategic thinkers. This ensures there’s a steady stream of leaders ready to take over, either when someone leaves or the business grows and needs more. 

• Change Management – Whether your business is scaling, restructuring or integrating new technology, fractional CHROs guide the people side of things to minimise disruption. They make change as seamless as possible for your team. 

• Cost Efficiency – With a fractional CHRO, you gain executive expertise without having to find the funds to cover a hefty salary, bonus or long-term financial commitment. This makes a fractional CHRO ideal for growing businesses with limited budgets. 

With Fractional CHROs, the Future of HR Leadership is Flexible 

With hybrid teams, the increasing need to access global talent and markets that are always changing, businesses need HR leadership that’s both strategic and adaptable. With a fractional CHRO, you can work with a leader who can join your team and hit the ground running, leading with insight and building systems that are effective long after their time with you ends. 

Whether you’re a small business laying the groundwork for growth, or an established brand that’s going through a period of transformation, a fractional CHRO can help you to build the perfect people strategy, culture and leadership structure that your business needs to thrive. 

Book a people strategy session with a fractional CHRO.