Business expansion is a pivotal moment for any organization, but as teams expand, operations accelerate, and cultural dynamics change, existing leadership structures begin to lose their effectiveness.
“What supported a team of 50 may not support a team of 300.”
At this stage, many businesses recognize the need for strong people leadership at the top. They begin to ask what type of leadership role will best support their expansion journey. Should they bring in a Chief Human Resources Officer (CHRO) to strengthen systems? Or should they appoint a Chief People Officer (CPO) to shape workplace culture?
This choice carries long-term implications for how the organization builds, sustains, and grows its workforce. Therefore, many organizations turn to Executive hiring firms for help in defining priorities and choosing a role that aligns with their growth plans.
Start by Defining Your Growth Priorities
Before choosing a role, take a clear look at your organization’s current environment.
Ask yourself:
Do we need stronger systems, clearer policies, and better compliance for rapid growth?
Or do we need to strengthen culture, build leadership pipelines, and keep employees engaged during rapid expansion?
Your honest answers form the foundation for this leadership decision. Executive search firms often emphasize that clarity at this stage prevents expensive hiring mistakes later.
Once you understand where your organization stands, you can evaluate which leadership role will work best for you.
What a CHRO Brings to the Table
A Chief Human Resources Officer focuses on structure. This leader develops policies, systems, and workforce strategies that enable the organization to expand without compromising its stability. A CHRO brings operational strength to the leadership table and ensures that growth rests on a solid foundation.
Key responsibilities of a CHRO include:
Designing scalable HR systems that support workforce growth
Building compensation and performance management frameworks
Ensuring legal compliance and reducing operational risk
Leading strategic workforce planning in line with business goals
Executive recruiters often recommend CHROs for organizations moving from early-stage to structured mid-growth. At this point, businesses benefit from leadership that brings order to growing complexity. If your main challenges involve systems, compliance, or governance, this is the person your organization needs.
What a CPO Brings to the Table
A Chief People Officer focuses on the human side of growth. As teams expand and structures evolve, culture can drift. If this shift is not managed properly, employees may lose their sense of connection to the organization. A strong CPO addresses this by nurturing culture intentionally and creating meaningful employee experiences that strengthen trust and engagement.
This role emphasizes leadership behavior, communication, and shared values. A CPO works closely with executives to ensure that people strategies align with the company’s evolving goals. They focus on how employees experience the organization on a daily basis and how leadership decisions influence that experience over time.
Key contributions of a CPO include:
Strengthening Workplace Culture During Periods of Change.
Building leadership development programs that prepare teams for growth.
Designing engagement strategies that improve retention and performance.
Promoting inclusion, well-being, and shared values across the organization.
Let’s take the example of a fast-growing technology company that expands into new markets within a short period. The company hires people with diverse expectations and backgrounds. In this situation, a CPO ensures that communication remains clear, values stay consistent, and leadership develops the skills to guide diverse teams effectively.
When an executive search firm evaluates candidates for this role, it looks for leaders who combine cultural insight with strategic influence. The aim is to find someone who can keep people connected while the organization evolves.
Which Role Fits Your Scaling Journey?
The right choice depends on your organization’s stage and the challenges you need to address.
Choose a CHRO if your priority is building structure. This role suits organizations entering new markets, expanding teams, or facing operational and compliance complexities. A CHRO establishes robust frameworks for performance, payroll, and workforce planning that support long-term stability.
Select a CPO if you want to enhance your company’s culture. This role is suitable for rapidly growing organizations where communication, leadership continuity, and engagement are at risk of becoming fragmented. A CPO ensures that the culture and people strategy evolve in tandem with the business.
Consider a combined approach when both structure and culture are equally important. Some organizations bring in one senior leader who has expertise in both areas and can effectively manage both structure and culture. Others create two distinct leadership positions. In that case, the CHRO focuses on building systems and processes, while the CPO concentrates on culture and people experience. Clear role descriptions prevent confusion and make sure both structure and culture receive the focus they need to succeed.
An experienced executive hiring firm can help assess these priorities in depth. Their insight allows leadership teams to make informed decisions that align with strategic goals and future plans.
Final Thoughts!
Choosing between a CHRO and a CPO is a strategic leadership decision that directly impacts an organization’s growth scale. A CHRO strengthens systems and builds stability. A CPO protects culture and inspires connection. Both roles are valuable, but the right choice depends on your current priorities and the future you want to build.
Executive recruiters bring clarity to this process. Their perspective helps leadership teams identify real needs, align roles with strategy, and hire leaders who can drive sustainable growth. When you make this decision deliberately, you set a clear direction for your company’s next chapter and give your teams the foundation they need to thrive.
