The Evolving Role of a Chief People Officer (CPO)
Let’s talk about people. Not policies. Not procedures. Not performance ratings. People.
Because at the heart of every business transformation, product launch, cultural shift, or five-year growth plan, you’ll find the same core element: people. And when it comes to driving how people thrive inside a company, no role is more central today than the the role of a Chief People Officer (CPO).
The workplace isn’t what it used to be, and neither is the HR function. From hybrid work and AI integration to rising employee expectations around purpose and well-being, businesses today need more than just HR oversight. They need people leaders who can align workforce strategy with business goals. That’s where the Chief People Officer (CPO) steps in.
The modern CPO is a business leader, a strategist, a culture architect, and yes, still very much a human connector. This isn’t just a trend. It’s a transformation.
So, what exactly is the role a Chief People Officer? How is the role different from traditional HR leadership? And why are more companies racing to hire one?
Let’s break it down.
Who is a Chief People Officer?
The Chief People Officer (CPO) is a senior executive responsible for designing and executing an organization’s people strategy. They lead HR, yes. But their focus goes beyond administration and compliance. CPOs drive culture, build talent pipelines, and align the workforce with business goals.
Typically reporting to the CEO, the CPO works alongside the executive team to shape everything from workforce planning to leadership development. It’s big-picture thinking that requires business acumen, data literacy, and the courage to challenge the status quo.
What Does a Chief People Officer Do?
The CPO doesn’t just ask, “How can we improve employee retention?”
They ask, “How is our turnover impacting revenue projections—and how do we solve it at the source?”
This is where people strategy becomes business strategy.
Let’s say a growing tech firm is struggling with a 30% attrition rate. Employee engagement is low, and managers are burning out. Enter a newly appointed CPO.
Within a year, they:
- Overhaul the onboarding process
- Introduce performance coaching
- Launch a DEI strategy
- Build an internal mobility platform in partnership with IT
The result? Turnover drops by half. Internal promotions rise. Customer satisfaction improves thanks to more engaged employees.
That’s the CPO difference.
The CPO is responsible for the entire people strategy across the employee lifecycle, including hiring, onboarding, development, performance, succession planning, and exit strategies.
But what sets the CPO apart is not just what they oversee. It is how they think.
What Are The Roles Of A Chief People Officer (CPO)?
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Strategic HR Leadership
The Chief People Officer (CPO) shapes an organization's human resources strategy. Their primary responsibility is developing and implementing strategic HR initiatives that align with business objectives, ensuring the workforce supports organizational goals. -
Talent Acquisition and Retention
CPOs focus on attracting top talent and retaining high performers to maintain a strong, competitive workforce. We offer modular talent acquisition solutions that provide flexible options that adapt to changing needs. -
Diversity, Equity, and Inclusion (DEI)
Creating a diverse and inclusive workplace stands at the core of the role of a CPO's. By championing diversity and belonging, CPOs build environments that enhance innovation and problem-solving. This drives our commitment to advocating for diversity and inclusion. -
Employee Engagement and Experience
CPOs prioritize employee engagement, working to maintain high levels of motivation and satisfaction that improve productivity. Through our talent consulting, we help optimize employee experience and engagement strategies. -
Compliance and Risk Management
CPOs oversee adherence to labor laws and regulations, protecting organizations from legal risks. -
Organizational Development and Change Management
Organizational development and change management fall under CPO responsibilities, helping companies adapt to evolving business environments. We support this agility with our AI-driven talent insights, enabling informed decision-making and strategic growth.
Why More Companies Are Prioritizing the Role of a CPO
This isn’t just a title shift. It’s a business necessity.
According to a recent Gartner survey, workforce considerations—including talent and culture, are now ranked as the third most important business priority for CEOs in 2024-2025, following growth and technology. This marks a significant shift, as 57% of CEOs plan to increase investment in people and culture.
Attracting and retaining talent remains the top workforce priority, with 26% of CEOs citing talent shortages as the most damaging risk to their organizations. This delta between business needs and HR delivery is exactly where a strong CPO steps in. Organizations that have elevated the CPO role are already seeing the impact.
It makes sense as well. Businesses are now realizing that it is not about status. It is about recognizing that the people function drives business outcomes. And when led correctly, it creates measurable value.
And the CPO is the executive shaping that asset. Whether it’s leading the charge on DEIB, adopting AI in talent workflows, or responding to a talent shortage, the CPO is increasingly the one making it all work.
In the 2022 Fortune 200, 25% of companies titled their top HR leader as Chief People Officer (CPO). This is not a coincidence. It is a correlation that speaks volumes.
How Can HR Professionals Grow Into the Role of a CPO?
There’s no one-size-fits-all path to becoming a CPO, but successful candidates often share a few key experiences and traits:
1. Build Broad Experience Across HR Functions
Exposure to areas like L&D, workforce analytics, talent acquisition, and employee relations helps future CPOs develop the pattern recognition needed to lead at scale.
2. Pursue Advanced Learning
77% of CPOs appointed in 2023 held an advanced degree, typically in HR, business, or law. Certifications from SHRM, SPHR, or AIHR signal commitment and help keep you future-ready.
3. Seek Mentorship from Senior Leaders
Learning from experienced executives provides valuable insight and often, career-changing opportunities.
4. Strengthen Business Acumen
The best CPOs think like business leaders. Understand how the company makes money. Know your customers. Stay tuned to market trends. This cross-functional awareness boosts credibility and impact.
5. Lead Without Waiting for the Title
Step up to lead initiatives that impact people and culture. These experiences help you build a leadership portfolio that speaks louder than a resume.
6. Grow Your Network and Stay Informed
Stay connected through communities like SHRM, CIPD, and AIHR. Attend conferences, subscribe to HR podcasts, and follow talent thought leaders on LinkedIn. Staying informed is how today’s HR professionals become tomorrow’s CPOs.
How the Role of a CPO Differs from a Traditional CHRO
The role of a Chief People Officer (CPO) and Chief Human Resources Officer (CHRO) are distinct within an organization:
While the Chief Human Resources Officer (CHRO) traditionally focuses on operational HR and compliance, the Chief People Officer prioritizes employee engagement, development, and culture.
- CHRO: Optimizes HR systems and ensures legal compliance
- CPO: Focuses on growth, well-being, and building inclusive, future-ready workplaces
This shift in mindset is not just semantics, but it’s strategic. Companies led by visionary CPOs consistently report higher engagement, stronger retention, and more sustainable performance.
Final Thoughts
The role of a Chief People Officer(CPO) is one of the most influential, dynamic, and rewarding positions in any company. It’s where people strategy meets business execution, and where HR leaders become true architects of culture and performance.
If you’re thinking about stepping into that role, remember: it’s not just about the title. It’s about your mindset, your skill set, and your ability to lead with empathy and impact.
At AMS, we believe the future belongs to organizations who put people first; and that starts with bold, visionary CPOs leading the charge.