Sunday, January 19, 2025

CHRO’s Role in Building a People-First Culture

CHRO: Driving People-First Culture Through Well-Being, Diversity, and Leadership

Employees are increasingly vocal about what they want from work—purpose, respect, inclusion, and growth opportunities.

Meanwhile, organizations are laser-focused on performance, profitability, and innovation. This glaring disconnect—what employees want vs. what companies demand—is the silent productivity killer, impacting engagement, stifling innovation, and eroding trust.

Gallup’s latest report reveals that only 23% of employees globally are engaged at work, and just 33% feel their job gives them a sense of purpose. These numbers point to a critical opportunity for transformation.

Who’s in the best position to close this gap? The CHRO.

Breaking away from HR-as-usual, the CHRO is uniquely positioned to lead this shift, and here’s how CHROs lead this transformation.

CHROs Bridge the Expectation Gap

Gallup estimates that disengagement costs the global economy $8.8 trillion annually in lost productivity impacting customer outcomes. The root cause? Many employees feel disconnected from their company’s purpose and unsupported by leadership.

A people-first culture hinges on the recognition that employees are more than resources; they are human beings with aspirations, challenges, and individual strengths. And CHROs address this issue by creating a “harmony zone,” where organizational objectives align with employee aspirations.

In practical terms, this involves creating policies and practices that encourage open dialogues, welcoming diverse perspectives, and addressing issues like burnout proactively.

By encouraging emotional connections and making space for employees to bring their full identities to work, CHROs cultivate an environment where people are inspired to do their best work.

Balancing Metrics with Meaning

Historically, HR departments have measured success through quantitative metrics—retention rates, headcount growth, time-to-hire, etc. While these are still essential, a people-first CHRO understands that culture is ultimately about qualitative impact.

Building a people-first culture requires CHROs to expand their metrics toolkit. Engagement surveys, exit interviews, and stay interviews are useful tools but only tell part of the story. Through employee feedback channels and monitoring cultural “pulse checks,” CHROs can detect shifts in employee sentiment before they impact productivity.

CHROs Shift the Culture from Competition to Cooperation

High-pressure, competitive environments often undermine morale and teamwork, as employees feel driven to “win” at any cost. When collaboration is sidelined in favor of individual performance, employees disengage, and productivity suffers. CHROs replace this competitive mindset with cooperation.

They create team models that reward collaboration, developing a framework for mutual respect, shared accountability, and regular team agreements to reinforce a cooperative spirit. This makes people want to come to work, bringing positivity and motivation into daily interactions.

CHROs Make Work Meaningful and Manageable

Underperforming teams are bad for business and signal a cultural breakdown. When work feels uninspired or overly stressful, people disengage. “Just enough” becomes the norm, and teams stagnate. McKinsey finds that 70% of employees define their sense of purpose through work, yet few companies actively cultivate this connection.

The role of the CHRO here is to set clear expectations, remove redundancy, and encourage meaningful challenges. Empower managers to balance workload and create environments where employees see a clear impact of their work, burnout drops, and purpose drives productivity.

CHROs Lead with Empathy to Build Trust

Leadership without empathy is a fast track to disengagement and toxicity. Employees can’t thrive in a culture where politics, bias, and indifference overshadow genuine leadership. CHROs can—and must be catalysts for change, emphasizing a people-first leadership model that values authenticity, transparency, and human connection.

Invest in leadership training that covers emotional intelligence, unconscious bias, and inclusive practices. Champion a culture where leaders are approachable, transparent, and engaged. When leaders are empathetic, trust grows—and with it, loyalty and performance.

CHROs Instil Accountability at Every Level

In people-first cultures, accountability is essential, not as a tool for micromanagement but as an empowering framework. CHROs establish a culture where employees feel responsible for their contributions, behaviors, and personal growth. This creates a positive cycle of trust, performance, and engagement.

CHROs lead by example, creating an environment where employees feel safe to voice concerns and give honest feedback without fear of retaliation. Establishing formal and informal feedback mechanisms, open forums, or even anonymous channels can be effective ways to gather genuine insights.

Transparent communication around what feedback has been received, what changes will be implemented, and why certain decisions are made can reinforce trust and give employees a sense of agency.

Strategic Actions for CHROs to Build a People-First Culture

  • Identify Your Harmony Zone: Regularly align company objectives with employee goals by creating spaces for open, honest feedback and close expectation gaps to ensure a foundation where both sides feel heard.
  • Anchor Policies in Human-Centric Values: Infuse empathy, transparency, and inclusivity into every policy, practice, and process to ensure every employee feels valued and respected.
  • Conduct a People-First Culture Audit: Go beyond traditional metrics—identify and close gaps in psychological safety, inclusivity, and well-being in the workplace.
  • Build Teams on Trust, Collaboration, and Shared Purpose: Establish team agreements that outline mutual respect, collaboration, and shared success, so everyone is committed to helping each other grow.
  • Equip Employees and Leaders with the Right Mindset and Tools: Training on emotional intelligence, and programs like Virtue Compass and Unconscious Bias Awareness give employees the tools to work harmoniously and productively.

The Business Case for a People-First Culture

A people-first culture is no longer optional. CHROs who champion this shift help their organizations attract and retain top talent and create a business advantage that’s hard to replicate.

Gallup’s data reveals organizations with highly engaged employees see 23% higher profitability and 10% higher customer ratings—tangible benefits that underscore the power of people-centered leadership.

Perhaps the most defining quality of a people-first CHRO is empathy. In times of change and uncertainty, employees look to leadership for reassurance.

An empathetic CHRO doesn’t shy away from difficult conversations or inconvenient truths; instead, they lead with transparency and a willingness to address issues head-on.

As a CHRO, how ready are you to align employee fulfillment with organizational success and drive sustainable growth?


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Sriram Sadras
Sriram Sadras
Sriram is an award-winning thought leader, author, Happiness@Work expert and he actively promotes Human Centricity. An ex-CHRO with over 27 years in HR he is also the author of Happiness Habits and is certified in several modalities including Happiness, NLP, Mindfulness, Life wisdom master coaching etc.