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The Increasing Responsibility of CHROs Proving Strategic Value

The Increasing Responsibility of CHROS: Proving Strategic Value

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The Increasing Responsibility of CHROS: Proving Strategic Value

Much has been written about HR’s emerging role as strategic business partner. But, a study involving over 100 directors reveal that executives still view HR as a highly transactional support function that usually does a great job with compensation and benefits – but not as an influential strategic player in the boardroom. Consequently, chief human resources officers (CHROs) must often demonstrate their value as a true strategic partner.

Executive Perceptions of HR and CHROs

According to the Harvard Business Review, research shows that although CEOs worldwide view HR as a top challenge, they rank HR as the eighth or ninth most critical aspect of an organization. A survey by People + Strategy and the National Association of Corporate Directors concluded that 71 percent of directors rank the CHRO as an excellent or good leader of the HR function. But, less than 31 percent reported that the CHRO has a good or great amount of influence on board decisions.

Interestingly, the CHRO is reportedly one of the top earners in the C-suite. The Harvard Business Review reported in 2014 that CEOs and COOs are the highest-paid executives. CHROs are next, earning an average annual base salary of $574,000. If salary ranking is any indication, the CHRO is an important aspect of operations.

Redefining the CHRO’s Role

The CFO’s role is defined by the board, external auditors, regulators and investment communities. This is not the case for CHROs, whose role typically is defined by the CEO. Therefore, CHROs must ensure that the CEO has a clear view of potential contributions this C-suite position is capable of making, such as:

  • Improving business outcomes through strategic HR management

Organizational performance largely depends on the fit between individuals and jobs. A poor fit can severely damage the bottom line, which the CHRO can prevent by identifying gaps in skills or behavior. A consistent collaboration with the CFO can ensure that assigned jobs, key performance indicators and budgets will produce desired results. Of particular value is a CHRO who is able to make meaningful predictions about the competition by examining established and potential competitors.

  • Evaluating problems

The CHRO is in a unique position to detect why the organization may not be meeting objectives or performance goals. Instead of hiring outside consultants, the CHRO, CEO and CFO should work together to examine underlying external factors – such as economic slumps or falling interest rates. The CHRO can link external factors data to the company’s social system – that is, how employees are behaving or how they’re working together – to uncover areas causing unnecessary friction.

More Transformational, Less Transactional

To reshape their board’s traditional view of HR, CHROs must become increasingly involved in planning efforts, for example:

  • Leverage technology to engage your people. By measuring performance and providing feedback, you can empower your colleagues with information and give them the opportunity to accomplish tasks.


  • Listen to your people and be prepared to develop strategies with the board that take action and resolve key problems. Surveying your people is a great method to show your employees that 1) you are listening and 2) you care.  However, if you are going to listen, be prepared to take action.


  • The CEO and C-suite succession process – from identifying and developing candidates, to choosing successors, to supporting the new executives.


Studies show that most CHROs have some work to do before their board views them as the top influential strategic partner. But, CHROs can make headway by exhibiting their value to the CEO and becoming advisors to the board.

Chad Raymond

by Chad Raymond

Author Bio: With over 19 years of experience in employee engagement, benefits administration and government compliance, Chad has unparalleled knowledge in the fields of leadership and human resources. Chad has worked in several different capacities with Paycom including leading our product development team and HCM initiatives as well as the former director of Paycom’s service department. Chad’s vision and execution helped empower executives and their teams to reach their full potential, ultimately leading to his role as Paycom’s vice president of HR.

California State Law

Why California State Laws Matter Nationwide

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Employment law constantly evolves, bringing new challenges to your HR department. By keeping an eye on changing legislation across the country, you can prepare your organization to remain compliant and be ready when laws change in your neck of the woods.

On a recent episode of Paycom’s HR Break Room podcast, we talked with Coby Turner, senior editor of the California Peculiarities Employment Law Blog and a Seyfarth Shaw associate, about a few strange employment laws emerging from the Golden State. Here are three key takeaways from our conversation.

1. Historically, California has been a trendsetter in employment law

Given California’s history as a trendsetter in U.S. law employment, business professionals should consider how the state’s laws may impact their company in the future.

One example is paid sick leave, which started in the city of San Francisco before spreading statewide. Other West Coast states – including Arizona, Oregon and Washington – since have passed similar legislation. Other California laws that have expanded beyond its borders include local minimum wage and medical marijuana initiatives.

2. Prepare your business beforehand

When a city implements a law, other cities and states wait to see how successful it is. Did the law hurt businesses? Did businesses leave the city or state? In most recent cases, like San Francisco’s paid sick leave, the answer is no.

According to Coby Turner, these changes often improve the lives and engagement of employees, which leads to organizations experiencing less turnover and more success. Turner said once a “test” city’s new legislation plays out, other cities or states may petition similar legislation on ballot measures, and employees may be the ones who push their representatives to enact such initiatives.

It’s important to be aware as these changes occur, so you never play from behind. Prepare for such changes to come to your own city or state, as word spreads fast. When top talent hears that paid sick leave or predictive scheduling are requirements in another state, they may want – and expect – the same. For employers outside of California, this makes paying attention crucial, especially if your organization wishes to attract and employ millennial talent from across the country.

3. Watch for updates on predictive scheduling and equal pay laws

Getting a lion’s share of attention is California’s measure on predictive scheduling, currently in the state’s legislature. Such laws in the cities of Berkeley and Emeryville require employers to give employees a certain amount of notice of their weekly schedule; employers making last-minute changes are penalized. Those cities also require employers to offer part-time employees more hours before hiring new people or temporary workers.

California also has instituted one of the stiffest pay equity laws in the country. Several similar laws already have been enacted, particularly on the West Coast and in various metropolitan areas across the U.S.

Additionally, the Golden State also recently required supervisors to undergo training against sexual harassment and bullying – topics expected to grow more popular within the larger national conversation about workplace harassment.

To learn more about California and its laws that gained nationwide impact, check out our posts dedicated to the golden state:


Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in Blog, California, Compliance


by Caleb Masters

Author Bio: Caleb is the host of The HR Break Room and a Webinar and Podcast Producer at Paycom. With more than 5 years of experience as a published online writer and content producer, Caleb has produced dozens of podcasts and videos for multiple industries both local and online. Caleb continues to assist organizations creatively communicate their ideas and messages through researched talks, blog posts and new media. Outside of work, Caleb enjoys running, discussing movies and trying new local restaurants.

NCAA Tournament

Swish! 5 Talent Lessons I’ve Already Learned From the NCAA Tournament This March

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If you’re like me, you’re involved in the NCAA Tournament in some form or fashion. If you’re not actively watching the games, you are connected to the spectacle in one of two ways:

You filled out a bracket.

It’s team-building 101 in many organizations and goes something like this:

  • You complete your bracket.
  • It gets busted in the first weekend (meaning you have no chance to win after the first two rounds).
  • Then the inevitable happens: Someone with zero knowledge of basketball leads your office pool and just gives you a shrug when you ask about their secret. (Their secret, by the way, is that they don’t overestimate their knowledge of college basketball.)


You connected to the tournament via the inevitable Cinderella story.

This year’s Cinderella stories in are many, but none are better than history’s first No. 16 seed, University of Maryland, Baltimore County, knocking off a No. 1 seed, University of Virginia. If you didn’t hear about that upset, chances are you live under a rock and consume no media whatsoever. The upset was so perfect that Final Four legend turned color commentator Chris Weber noted that UMBC could stand for “U Must Be Cinderella.” Corny? Yes. Perfect? Also yes.

Swish! 8 Engagement Strategies to Drive Game Winning Performance, a bracketology webinar for management styles! 

Watercooler chat about basketball is hard to avoid in the month of March, and it’s also hard for HR pros like me to avoid turning it into a learning opportunity. With that in mind, here are five talent lessons I learned from the first weekend of The Big Dance:

1. Uniqueness wins because it’s hard to prepare for.

Whether it’s hoops or business, being different from others means you’re hard to prepare for. Syracuse deploys a defensive scheme called the 2-3 zone, while most other schools use a man-to-man approach. That means they are hard to prepare for, which was key when knocking off one of the tourney favorites, Michigan State. When you have a strategic plan that’s different than your competitors and the talent to pull it off, your organization will get unexpected wins – simply because you look and feel different from others.

2. Conservative approaches decrease your margin for error.

UMBC’s aforementioned upset of Virginia is a great example of this truth. The UMBC Retrievers play a conservative style on both offense and defense; they aren’t incredibly talented, but they execute their base strategy very well. That conservative approach wins a lot, but in a “lose one game and you’re out” type of environment, it can be deadly. The other team gets hot, and suddenly, you’re out.

The moral of the story? Even if you have a great team, never stop trying to upgrade the talent you have. Conservative approaches in basketball (the “grinding out wins” mentality) are used because they are the best way to win with average talent. The same thing is true in business.

3. Great individual talent can overcome huge disadvantages in company size and resources.

If you ever find yourself going up against Microsoft, Google or whoever the 800-pound gorilla is in your industry, never forget that a key hire with high talent can help you win more than your share, regardless of the product or service you’re providing. This is shown to be true time and time again in this month’s tournament. Whether it’s UMBC beating Virginia, or Buffalo taking down Arizona, once you step onto the court, only five players can play. Get yourself some great talent and unbelievable things can happen.

4. Matchups matter a lot – whether you’re competing on the court or responding to an RFP.

Every project, implementation or sales pitch is different. The most successful companies have managers who know how to get the most out of human capital – and tweak their approach based on the client or prospect in front of them. The most successful coaches do the same thing: Create new plans for each game, based on the challenges that are presented.

5. Great leadership is easy when you win, but more valuable when you lose.

It’s easy to look great as a coach when you win. But take a look at this compelling video of Virginia coach Tony Bennett after the UMBC loss. Being able to console your team members and show them the way forward after a crushing defeat, layoff or other negative event is key. Bennett does this with grace, which means he’s teaching and supporting in a way that transcends the game at hand. Your best managers do the same.

Every year, I’m reminded how much commonality there is between the NCAA Tourney and our lives as talent professionals.

I just wish my bracket weren’t busted after the first weekend.

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Posted in Blog, Featured, HR Management, Leadership

by Kris Dunn

Author Bio: Kris Dunn is a partner and CHRO at the Atlanta-based Kinetix, a national recruitment process outsourcing firm for growth companies. He is the founder of two industry-leading blogs – Fistful of Talent and The HR Capitalist – and has written more than 70 feature columns for Workforce Management magazine. He previously served in HR leadership roles at DAXKO, Charter and Cingular.

How to Build a Harassment-Free Workplace Culture

How to Build a Harassment-Free Workplace Culture

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Sexual harassment quickly can deteriorate – and even derail – any organization, making anti-harassment training vital. However, most companies address the issue with employees by pushing training that is routine, which is often ineffective on its own. Effective prevention of harassment in the workplace starts with creating a culture that identifies and rejects unacceptable behaviors.

Although an HR department’s role is primarily to protect the interests of the company, adopting policies and procedures for harassment and discrimination can help align the interest of both the organization and its employees. What steps can businesses take to balance both interests?

Join Matt Paque April 17, 1 p.m. CST, as he co-hosts the SHRM webinar, A Safer Workplace: Discussing Sexual Harassment, with HR Manager, Tiffany Gamblin.

Accountability from the top down

Workplace culture is the reflection of an organization’s values, behaviors and attitudes. A healthy culture is critical to attracting top talent, driving employee engagement and retention and improving performance.

According to the Equal Employment Opportunity Commission (EEOC)’s June 2016 report, “Select Task Force on the Study of Harassment in the Workplace,” leaders can take several steps to improve workplace culture surrounding harassment:

  1. Emphasize the importance of diversity and inclusion. Harassment prevention based solely on a compliance mindset is unlikely to be successful.
  2. Conduct surveys to determine whether employees experience harassment in the workplace. The results should determine whether employees feel harassment – if it exists – is tolerated.
  3. Implement effective policies and procedures, then conduct trainings on them.
  4. Support the policies, procedures and training with resources, whether time or money. There is no better way to convey to employees that efforts are authentic and credible than by dedicating sufficient company resources.
  5. Vest any department, team or task force charged with creating and maintaining a harassment-free workplace with the authority to make decisions.


Training that does not simply check a box

A healthy culture of equality starts with the tone from leadership. Organizational leadership must take an active role in defining acceptable workplace behavior, ensuring these behaviors are part of the company’s stated values, and investing in programs to promote a positive environment.

Although most people could identify blatant harassment such as “quid pro quo” – that is, offering to give an employee something in return for the employee’s satisfaction of a sexual demand – not all forms of harassment are universally recognized.

Anywhere from 25% to 85% of men and women report having experienced sexual harassment in the workplace, according to the EEOC. The wide divergence in the percentage is due, in part, to a knowledge gap of what actually constitutes sex-based harassment. When asked whether they have experienced unwanted sexual attention or sexual coercion at work, the percentage of women claiming harassment was much lower. However, when explained that sex-based harassment includes “gender harassment,” which are hostile behaviors without sexual interest, the percentage increased dramatically. Gender harassment differs from unwanted sexual advances in that the behavior aims to insult and reject a person based on gender stereotypes.

To create an environment free of harassment, employees throughout the organization must understand clearly conduct that is acceptable and that is not. Implementing interactive training on reporting procedures, unacceptable conduct and, more importantly, applying policies consistently – regardless of position within the organization – can dramatically improve culture.

A compelling business case

Put simply, employers should invest in preventing harassment not only because it is wrong, but because they have a legal obligation to do so. However, a deeper dive reveals organizations have an incentive beyond moral and legal to mitigate harassment: a financial one.

The direct costs to an organization are staggering. According to the EEOC, since 2010, employers have paid $698.7 million to employees alleging harassment through the agency’s administrative enforcement pre-litigation process. If a claim advances to litigation, the impact tends to grow even more substantial; for example, according to eBossWatch’s review of all harassment litigation in 2012, employers paid more than $356 million for workplace harassment complaints.

Although less measureable, the indirect costs can be considerable. Reports of pervasive sexual misconduct within high-profile organizations have dominated the headlines for months. Allowing – or in some cases, encouraging – a culture of harassment and discrimination has caused substantial reputational damage to those organizations.

More importantly, the human toll is significant. Employees subject to a hostile work environment can experience mental and physical harm. Depression, anxiety, chronic headaches and sleep, respiratory and cardiovascular problems have been linked to those experiencing harassment. When employees experience these conditions, companies suffer from decreased productivity and increased turnover.

When organizational leadership prioritizes creating a harassment-free workplace culture by emphasizing values of diversity and inclusion, implementing effective training, allocating sufficient resources and applying policies and procedures consistently, the interests of the company begin to align with those of its employees.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

Tags: ,
Posted in Blog, Compliance, Employment Law, Featured

Matthew Paque

by Matthew Paque

Author Bio: Matthew A. Paque is Paycom’s Director of Legal and Compliance. In this role, he is responsible for Paycom’s legal affairs including compliance and risk management. He has served in a variety of leadership and legal positions in both the private sector and in government. Before joining Paycom, Paque was an attorney at the law firm of McAfee & Taft and previously was Assistant General Counsel at Tronox a global mining and chemical company. He holds a J.D. from the University of Oklahoma and a B.A. from Oklahoma City University. Paque is also an adjunct professor at Oklahoma City University’s Meinders School of Business.


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