What is a chief people officer? Everything you need to know

Organizations understand that building a positive culture where team members can thrive is essential for success. Achieving this takes more than just HR expertise—it requires a leader who combines business acumen with people-focused strategies to attract top talent, support growth, and ensure the company is equipped to reach its goals.

This is where the chief people officer (CPO) comes in. As strategic partners to leadership teams, CPOs play a pivotal role in shaping the future of work. Nearly 90 percent of CEOs believe HR leaders like CPOs help drive long-term, profitable growth.

In this article, we’ll explore what a chief people officer does, how they contribute to business success, and how their role is evolving to meet future challenges.

What is a chief people officer? 

A chief people officer, or CPO, is the C-suite-level position responsible for building a company’s culture, managing an organization’s team members, and ensuring that HR strategies align with overall business objectives and goals. The role requires a blend of business acumen, HR expertise, leadership capabilities, interpersonal skills, and creative problem-solving capabilities. The role usually involves: 

• Developing strategies to hire and retain skilled people
• Ensuring the organization has the right people in the right positions at the right time through strategic workforce planning
• Upskilling and reskilling team members and managing their performance 
• Overseeing corporate culture and creating buy-in for the company’s values, mission, and goals
• Managing employee relations to foster collaboration and good relationships among team members 
• Implementing diversity, equity, and inclusion programs to build an equitable work environment 

Chief people officer vs. chief human resource officer

Although many businesses use these titles synonymously, the chief people officer and chief human resource officers (CHRO) have different functions. While CHROs focus on managing operational HR functions, CPOs drive strategic initiatives that shape how people work and create an environment where people thrive.

Chief human resource officers are primarily concerned with the operational side of HR. They handle compliance, payroll, benefits, recruitment processes, and the implementation of HR policies. Their role is essential for ensuring the business operates smoothly and adheres to relevant laws and regulations. CHROs often focus on managing the administrative aspects of the employee lifecycle, ensuring the organization remains compliant and competitive.

CPOs take a more strategic and people-focused approach. They aim to unlock people’s potential to drive long-term business growth. Their forward-thinking perspective emphasizes aligning team members with the company’s vision and fostering engagement. CPOs oversee people operations and create strategies to build a positive company culture, enhance the employee experience, and develop team members’ skills to ensure they thrive. 

How chief people officers contribute to business success

Chief people officers bridge the gap between business goals and people strategies, which is crucial in driving success. However, their responsibilities can vary depending on the organization. In smaller companies, CPOs may take a hands-on approach, directly implementing strategies and managing day-to-day people operations. In larger organizations, they often focus on overseeing broader initiatives, delegating tasks to specialized teams, and aligning strategies with long-term business goals.

Regardless of the specific role, CPOs typically contribute to business success by:

Creating talent management strategies 

CPOs ensure the company has top talent by identifying skill gaps and collaborating with HR teams to source people through diverse channels. They develop effective screening procedures to hire individuals who align with the company’s culture and values, helping build strong, cohesive teams.

In addition to hiring the right people, CPOs play a key role in talent development. They assess their team’s current skills against future organizational needs, implementing upskilling programs to ensure their workforce remains adaptable and competitive. 

Monitoring the HR department’s daily operations

The CPO serves as the backbone of the HR department, overseeing HR strategies and decision-making to align team member wellbeing and business success. This involves managing critical HR operations, managing workload, setting HR goals, and tracking progress.

Most importantly, the CPO provides guidance to build a high-performing HR team capable of driving business success through people-focused strategies.

Managing the performance management process 

The CPO works with the HR department to implement performance management strategies. This includes setting KPIs, developing skills to improve performance, and translating the company’s strategic goals into actionable objectives for team members. 

CPOs oversee the HR team’s performance management methods, such as 360-degree performance reviews, peer-to-peer mentoring, and continuous feedback. 

Improving employee communication 

Forbes reports that almost 50 percent of people say ineffective communication affects their productivity at work, and people also feel less valued when they don’t receive information about company-wide initiatives. In organizations struggling with top-down communication, CPOs bridge the gap. They keep people in the loop by communicating all company matters, including getting their opinions or feedback. 

Handling people-related issues and crises

With a combination of emotional intelligence, communication, and conflict resolution skills, CPOs can maintain a peaceful work environment. They mediate between people and start conversations that help people express their concerns, encouraging fair resolution. 

They prioritize employee wellbeing by addressing concerns, investigating complaints, and fostering a work environment where everyone feels safe and valued.

Developing compensation and benefits strategies 

An effective compensation and benefits strategy helps attract and retain top talent. Chief people officers guide and approve compensation plans that include competitive pay and employee benefits like life insurance, paid time off, and retirement savings plans. 

The right packages can improve team member morale, motivation, and productivity. 

Leading succession planning

Great CPOs understand the importance of building a pipeline of effective leaders. They work with HR managers to create succession plans by identifying roles key to an organization’s operations, assessing current team members to determine potential successors, and developing training plans and a career path to prepare them for future roles. 

How to become a chief people officer

The role of chief people officer requires a combination of education, practical experience, career planning, and problem-solving skills.

Educational background 

Most companies consider education level when hiring a chief people officer. According to research, 77 percent of CPOs hold at least one advanced degree. 

People can start with a bachelor’s degree in human resource management, business administration, or a related course. Prospective CPOs can enhance qualifications with a Master’s degree in human resource management (HRM)  or business administration (MBA). 

In addition to formal education, regularly taking courses from accredited institutions helps develop the strategic thinking and leadership skills needed for success. 

Skills needed to be chief people officer 

CPOs combine hard and soft skills to manage people and meet organizational goals. They: 

• Apply strong business acumen, compliance knowledge, data analysis, and strategic thinking to improve HR processes, foster a positive work culture, and align HR strategies with broader organizational goals
• Demonstrate soft skills such as effective communication, leadership, adaptability, conflict resolution, teamwork, and empathy to connect with people and inspire team members to achieve shared objectives
• Utilize HR technology, including applicant tracking systems (ATS) and human resources information systems (HRIS), to automate manual HR processes, enable data-driven decision-making, and focus on strategic activities

Chief people officer career paths 

The typical career path for a chief people officer begins with gaining foundational experience in human resources. Many CPOs start in entry-level HR roles, such as HR assistant or HR coordinator, where they build expertise in recruitment, employee relations, and compliance. From there, professionals progress to mid-level positions such as HR manager or HR business partner, taking on greater responsibilities, including overseeing teams and implementing people-focused strategies.

After several years of experience, aspiring CPOs may advance to senior roles, such as HR director or head of talent, where they lead departmental initiatives. With proven success in these roles, professionals may be promoted to executive-level positions, such as vice president of HR, where they focus on company-wide strategies, leadership development, and long-term planning.

Finally, those with a strong track record of strategic leadership and people management may step into the C-suite as chief people officers. While studies find that chief people officers with prior HR expertise are 35 percent more likely to help an organization grow its revenue, people can transition from other leadership roles if they have transferable experience and skills. 

Challenges CPOs manage 

A chief people officer addresses various people-related concerns, such as:  

• Managing employee retention and preventing high turnover
• Navigating hybrid work models
• Supporting a diverse workforce 
• Creating an inclusive work culture that prioritizes team members 
• Identifying and providing the right development opportunities for people 
• Navigating legal and regulatory changes to maintain compliance 

The future role of chief people officers

Developing innovative, people-focused strategies is becoming increasingly vital for organizations aiming to attract and retain top talent. CPOs who successfully balance fostering a positive team culture with achieving business objectives will drive organizational growth and maintain a competitive edge in an evolving market.

The most effective CPOs will also stay ahead of emerging trends like automation, artificial intelligence, and the gig economy. Preparing their teams for these changes ensures their people remain adaptable and skilled in today’s workplace. CPOs will continue to play a critical role in shaping the future of work, leveraging their expertise to create environments where people and businesses thrive.

Chief people officer FAQs

Does a chief people officer hire people?

While a chief people officer may not directly hire everyone themselves, they help lead the talent acquisition team responsible for hiring people. They review and approve the company’s hiring strategy, including the criteria for attracting and selecting team members that align with the company’s culture and needs. They also provide guidance where necessary, evaluate top candidate profiles, and make the final hiring decisions. 

What is a chief people officer’s salary?

A chief people officer’s salary depends on many factors, including the country of employment, specific work location, experience, industry, level of education, and company. For example, in the United States, most CPOs earn between $265,480 and $330,080 yearly. In the United Kingdom, the estimated salary range for a CPO can be between €88,000 to €146,000, with people in London earning more due to the demand for senior roles and the cost of living. In addition to their salary, chief people officers can receive stock options, generous employee benefits packages, and yearly bonuses. 

What is another name for chief people officer?

Many organizations refer to the chief people officer as the head of the HR department or the chief human resources officer (CHRO). However, the CPO is not the same as a CHRO. The CPO role focuses on people-related initiatives and implementing strategies that improve team member engagement, happiness, and the organization’s culture. Depending on the organization, the CPO may also handle traditional HR functions such as training and development, performance management, and recruitment. 

Who does the chief people officer report to?

The chief people officer reports directly to the chief operating officer (COO) and chief executive officer (CEO). This reporting structure can be effective because the CPO has to align human resource management initiatives with the company strategy and goals. It enables the CPO to stay informed about key business decisions. The CPO also reports to a board if it’s directly involved in management and strategic decision-making.