The Chief People Officer (CPO) has become a pivotal role in modern organizations, responsible for aligning people strategy with business objectives. According to a
recent survey, 89% of CEOs believe CHROs should have a central role in driving long-term growth. Companies are increasingly turning to CPOs to lead efforts in creating a people-first culture, enhancing employee engagement, and developing workforce strategies that directly contribute to overall organizational success.
1. Understanding the Role of a CPO
The Chief People Officer plays a pivotal role that goes beyond traditional HR functions. More than just managing Human Resources, a CPO acts as a strategic partner to the CEO and other senior leaders, ensuring alignment between people operations and business goals. This requires a deep understanding of the organization’s vision and the ability to influence key areas such as people analytics, workforce planning, employee experience, building organizational capability and capacity, and championing culture.
In today’s rapidly evolving corporate environment, CPOs are tasked with fostering a workplace that attracts top talent while enhancing employee engagement and retention. They craft strategies that support both short-term workforce needs and long-term business growth. By driving initiatives such as diversity, equity, and inclusion (DEI) efforts, leadership development, and HR technology integration, CPOs ensure that the human side of the business contributes directly to organizational success.
CPOs also serve as champions of employee experience, ensuring that the workforce feels valued, engaged, and aligned with the company’s mission. Their strategic influence enables them to anticipate future talent needs, navigate complex workforce challenges, and guide the organization through periods of transformation.
Key Responsibilities of a CPO:
- Talent Management: Chief People Officers are pivotal in attracting, developing, and retaining top talent. They align hiring strategies with business goals to recruit high-potential employees and create development programs that nurture talent through career progression. Their retention efforts focus on fostering engagement and reducing turnover, ensuring that top performers are supported in their career growth and remain committed to the organization’s success.
- Culture Building: CPOs shape organizational culture by promoting an inclusive, engaging workplace. They ensure that the company’s values resonate with a diverse workforce and cultivate an environment that supports collaboration and innovation. A strong, inclusive culture enhances employee satisfaction and contributes to higher retention rates.
- Leadership Development: CPOs are responsible for creating leadership pipelines to sustain business growth. They identify and develop high-potential employees, ensuring the organization is equipped with skilled leaders prepared for future challenges. By aligning leadership programs with long-term business objectives, they help secure the company’s strategic direction.
- HR Technology: By integrating cutting-edge HR technologies, including AI-driven recruitment and predictive analytics, CPOs are streamlining operations, improving talent management effectiveness, and generating insights that fuel organizational success.
- Total Rewards: CPOs design and administer a foundational aspect of every workplace: pay. While compensation design can be complex, savvy CPOs develop expertise in this area and regularly update, monitor efficacy, and ensure solid communications are in place for these programs. Speaking with confidence about compensation philosophy, including incentives and equity, is critical to establishing credibility as the People Executive.
2. CPO vs. CHRO: What's the Difference?
The CPO role is often confused with the Chief Human Resources Officer (CHRO), but there are key differences. The CHRO typically focuses on operational aspects like compliance, payroll, and benefits. In contrast, the CPO is more strategic, playing a crucial role in aligning HR practices with overall business goals. Additionally, the CPO often sits at the executive table, directly influencing the company's direction and transformation.
According to
Gartner, the CHRO oversees the organization's HR management and labor relations policies, practices, and operations, while a CPO often focuses on more strategic areas like
holistic employee wellbeing, culture, and talent readiness. While both positions are vital, the CPO’s focus on strategy and transformation distinguishes it from traditional HR leadership roles.
3. Top Priorities for CPOs in 2025
Considering the latest trends and expert insights, Chief People Officers in 2025 will concentrate on steering through a challenging environment influenced by swift technological progress, changing workforce expectations, and ongoing economic uncertainties. Here are the top priorities for CPOs in 2025:
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Strategic Workforce Planning and Agility:
In a recent survey posted to our CPO Collective group on LinkedIn, we found that 44% of Chief People Officers consider workforce planning their top priority for the year.
CPOs must transition from traditional headcount planning to cultivating a versatile workforce that can swiftly adapt to technological and market changes. This requires pinpointing essential skill gaps, forecasting future workforce demands, and crafting adaptable talent strategies. Emphasis will be placed on skills-based hiring and the rapid re-skilling of employees. The objective is to ensure the organization has the right talent, is equipped with the necessary skills, is positioned appropriately, and is ready at the right moment to achieve business success in a constantly evolving landscape.
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Leadership Development:
The demands on leaders will continue to change, necessitating their ability to handle complexity, nurture inclusive cultures, and spearhead digital transformation. CPOs will emphasize leadership development programs that aim to cultivate these essential skills. This involves developing expertise in change management, improving digital literacy, and encouraging inclusive leadership practices. Leaders must be capable of inspiring and motivating teams in both hybrid and remote work settings and effectively guiding them through significant organizational changes.
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Leveraging AI and HR Technology:
CPOs will need to embrace AI and other advanced HR technologies to streamline processes, gain data-driven insights, and enhance the employee experience. This includes utilizing AI for talent acquisition, performance management, personalized learning, and employee engagement. People analytics will be essential for making informed decisions about workforce planning, talent development, and organizational effectiveness. CPOs must ensure ethical implementation and address potential biases within these technologies.
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Cultivating a Strong Organizational Culture:
Forbes reports that 77% of people would consider a company’s culture before applying for a job there, and over half consider it more important than salary when it comes to job satisfaction. Building a positive and inclusive organizational culture will be essential for attracting and retaining top talent. CPOs will focus on creating a culture that fosters employee engagement, well-being, and a sense of belonging. This involves fostering open communication as well as creating a supportive and inclusive work environment. CPOs will strive to create a culture that aligns with the organization's values and promotes a sense of purpose among employees.
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Employee Experience and Engagement:
CPOs will focus on improving the employee experience to boost engagement and retention. This involves adjusting to the changing dynamics of flexible work setups, emphasizing employee well-being, and offering tailored experiences. They will aim to create smooth and intuitive employee journeys, covering everything from onboarding to offboarding. Additionally, CPOs will leverage employee feedback and data to consistently enhance the employee experience.
4. Top Skills for Chief People Officers to Look for in 2025
As organizations face unprecedented changes in workforce dynamics, the role of the Chief People Officer (CPO) continues to evolve, requiring a unique set of skills that blends strategy, emotional intelligence, and technological insight. To successfully navigate the future of work, CPOs must hone several core competencies to ensure they can lead their teams and organizations through the challenges ahead.
- Strategic HR
One of the most important skills for a CPO is the ability to lead and manage organizational change effectively. As businesses constantly adapt to market shifts, technological advancements, and global disruptions, CPOs must be proficient in organizational change management—the skill to foster adaptability and resilience across the workforce. This involves overseeing large-scale transformations, such as mergers, restructuring, or new business models while ensuring minimal employee engagement and productivity disruption. Additionally, talent development and retention remain critical for success, as developing robust succession plans, career pathing, and performance management programs are key to keeping talent engaged.
- People Analytics
67% of business leaders report that their organizations are not effective at using data in workforce planning. As organizations increasingly rely on data to track employee performance, engagement, and productivity, CPOs need to develop expertise in using people analytics to assess the workforce's health. By utilizing data-driven decision-making, CPOs can align their people strategies with business goals, ensuring that employee initiatives directly contribute to measurable outcomes. Additionally, predictive analytics is becoming an indispensable tool for workforce planning, enabling CPOs to forecast future talent needs, identify potential skills gaps, and proactively manage recruiting efforts. With the rapid growth of HR technology solutions, CPOs must also be technologically proficient and capable of navigating complex HR platforms and interpreting data to enhance workforce strategy and improve the overall employee experience.
- Change Management
Leading a workforce through change requires a high degree of resilience and flexibility, and change management will be a crucial skill for CPOs in the coming years. As businesses continue to face disruption—from economic uncertainty to technological innovations—CPOs must thrive in these fluid environments, embracing and leading through change with confidence. Resilience and adaptability are key qualities that enable CPOs to model positive behavior and help teams transition smoothly. Moreover, the ability to manage internal and external stakeholders effectively is critical; successful CPOs need to communicate the rationale behind change initiatives clearly and transparently to gain buy-in from executives, managers, and employees alike. Change leadership also goes beyond logistics—it’s about inspiring teams to embrace change, fostering a growth mindset, and driving organizational shifts that lead to greater innovation and long-term sustainability.
- Emotional Intelligence
In 2025, the growing emphasis on emotional intelligence is undeniable, as the most effective CPOs understand the importance of creating human-centric organizations. Empathy and compassion are critical components of emotional intelligence, enabling CPOs to support employees in both their professional roles and emotional well-being. As workplaces become more employee-driven, leaders who listen, respond, and provide solutions to their workforce's needs can foster a positive work environment that enhances both engagement and productivity. Building strong relationships with both employees and leadership teams is also essential, as relationship building lays the foundation for trust and collaboration. Effective conflict resolution helps navigate interpersonal challenges in moments of tension or conflict and ensures the organization remains cohesive, innovative, and resilient.
- Ethical Leadership
Lastly, ethical leadership is a critical skill that will continue to define the role of a CPO in the coming years. In an era where transparency, integrity, and social responsibility are not just valued but expected, CPOs must lead with integrity and transparency. This means fostering an organizational culture where ethical practices are upheld, and employees feel confident that their leadership prioritizes fairness and accountability. Ensuring compliance with labor laws, regulations, and corporate governance is another vital responsibility of CPOs, as failure to do so can have significant legal and reputational consequences for businesses. Furthermore, CPOs are often at the forefront of social responsibility efforts, aligning corporate social responsibility (CSR) initiatives with the company's mission and values to create a lasting positive impact on both employees and the community.
5. The Importance of a CPO & CEO Partnership
In today's ever-changing business world, it's crucial for the Chief People Officer (CPO) and the Chief Executive Officer (CEO) to work closely together. This collaboration ensures that people strategies align with the overall business goals. A strong partnership between the CPO and CEO supports both short-term efficiency and long-term growth, addresses evolving workforce challenges, fosters innovation, and ensures a strong corporate culture.
"There’s nothing more important for a CPO than building a strong relationship with their CEO. A common philosophy around talent, business priorities, and leadership is key. The CPO’s ability to keep culture and talent at the forefront of the business strategy is essential. Strong trust between these two individuals provides the foundation for a healthy organization."
- Lisa Letizio, Chief People Officer at livingHR
Effective CEO/CPO relationships are built on several key pillars:
- Shared Vision and Goals: Alignment on the company's mission, vision, and long-term goals is fundamental. This shared understanding allows the CPO to develop people strategies that directly support business objectives, ensuring the workforce is engaged and working cohesively towards common aims.
- Talent Strategy: The CPO's expertise in talent acquisition, development, and retention, combined with the CEO's business acumen, creates a powerful engine for building a high-performing team. A collaborative approach to talent management ensures the organization has the right people in the right roles, prepared to meet current challenges and future growth demands. This includes succession planning, leadership development, and creating a sustainable talent pipeline.
- Organizational Culture: The CEO and CPO are jointly responsible for shaping and nurturing the company's culture. A strong, values-driven culture is essential for attracting and retaining top talent. Their partnership ensures the culture reflects the company's mission and resonates with employees, fostering a positive and productive work environment that drives engagement, innovation, and satisfaction.
- Change Management: In today's dynamic business landscape, change is constant. The CPO and CEO must work together to effectively manage organizational change, providing clear communication, support, and guidance to employees throughout transitions. This collaborative approach builds resilience and adaptability within the workforce, enabling the organization to navigate change successfully.
- Risk Mitigation: The CPO plays a critical role in identifying and mitigating HR-related risks, such as compliance issues, employee turnover, and talent gaps. By partnering with the CEO, the CPO can proactively address these risks, minimizing their potential impact on the organization and safeguarding its reputation.
These collaborative efforts translate into tangible benefits:
- Improved Decision-Making: Combining the CEO's business insights with the CPO's people expertise leads to more informed and well-rounded decisions. This ensures that decisions not only align with business goals but also consider the impact on employees, resulting in better outcomes for the entire organization.
- Enhanced Organizational Performance: A strong CPO-CEO partnership drives employee engagement, productivity, and innovation. When employees feel valued and supported and talent strategies align with business objectives, performance levels naturally rise, creating a more agile and competitive organization.
- Stronger Employer Brand: Collaboration between the CPO and CEO strengthens the company's reputation as an employer of choice. A positive and supportive work environment and a commitment to employee development attract top talent and reduce hiring costs. A strong employer brand enhances the organization's long-term success.
A united CPO-CEO partnership is vital in today's competitive landscape. It allows companies to build adaptive workforces, drive business results, and maintain strong organizational cultures. This leadership duo aligns people strategies with business objectives, paving the way for sustainable growth and success.
To Sum Up
In summary, the role of the Chief People Officer continues to grow in significance as organizations recognize the crucial link between
people strategy and business success.
Today's CPOs must possess a unique blend of leadership, data proficiency, and emotional intelligence to thrive in the ever-evolving HR landscape. Whether you require ongoing support through Managed Services, assistance with specific projects, or retained consulting, our team at livingHR can tailor solutions to meet your unique needs and help your people strategy drive exceptional results. Get the support you need by requesting a complimentary consultation with us, and be sure to check out our library of resources tailored for people leaders.
For Chief People Officers seeking a community for connection, shared insights, and collaborative opportunities, we invite you to join our CPO Collective Group on LinkedIn today.