Building a successful startup is not solely the founder’s responsibility. Any CEO knows that having the right team is crucial for creating and developing a well-functioning company. As the company grows, the CEO’s responsibilities increase, consuming more time. Eventually, there comes a point when the founder can no longer adequately address the needs of their employees. If you find yourself in this situation, it’s a sign that you should start looking for a Chief Human Resources Officer (CHRO).
In this article, we’ll explain who the CHRO is and what they can bring to your startup.
What is a CHRO and How Do They Benefit a Startup?
A Chief Human Resources Officer (CHRO) is a role that combines strategic oversight of a company’s key HR needs with day-to-day HR activities, such as managing and hiring employees. In larger companies, the CHRO is often a senior role that oversees other HR managers.
Hiring a CHRO can benefit your startup and aid in its development. Here are the key advantages of this position:
- Know the People: The CHRO keeps you informed about the team’s day-to-day status, allowing you to focus on your tasks while staying updated on employee well-being.
- Time Economy Role: HR experts assess business priorities, determining what can be handled by internal talent versus what should be outsourced. This ensures the team is productive without being overstretched.
- Mediator: HR professionals act as a bridge between the CEO and employees, understanding the expectations of both sides.
When is the Best Time to Hire a CHRO?
Determining the best time to hire a CHRO is not an exact science. There are no specific guidelines on the number of employees or the length of time your startup should be operating before hiring a CHRO. It depends on your company’s unique needs and circumstances.
However, here are some signs that may indicate your company needs someone in HR:
- Employee Tenure: If your employees have been with the company for over a year, this is a positive indicator of a stable workforce that could benefit from professional oversight.
- Senior Team Composition: A workforce often benefits from a CHRO when senior leadership includes non-founding members. This indicates a need for specialized roles in management, as original members begin to focus on their specific priorities.
- Evolving Priorities: Founders should evaluate how the company’s priorities have evolved since its launch. For instance, if the people agenda has become one of the top three business priorities, it is an opportune time to bring on a specialist to ensure the team feels valued and well-managed.
Hiring a CHRO is a significant step for a startup. Remember not to rush the process and aim to find the “perfect moment” to add this new member to your team.
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