In an exclusive conversation with CXO Media and APAC Media, Punit Puri, Non Executive Director & Fractional CHRO, Soft Hear delves deep into how the shift from operational leadership to advisory roles enables experienced CHROs to drive impact across multiple businesses, shape boardroom decisions, and contribute to long-term corporate success.
What motivated you to take on the role of a Fractional CHRO for this organization?
I had initially discussed the role of Non-Executive Director with Soft Hear. It was supposed to be more mentorship and guidance for them. However, as per my experience of previously working with fast growing smaller organizations, they face significant people and retention challenge as they grow. I had previously played CHRO roles and knew the challenges they will face, so I suggested that I will not just play a director but will also be more hands-on and spend 20-30 per cent time as a Fractional CHRO and help guide on all the people related areas. I listed all the challenges they will face and how I will help them navigate these as the growth happens.
How do you plan to assess the company’s existing HR strategies and identify key priorities in your initial days?
This is a company that runs its medical devises business on clinic model. The HR set-up is currently only focused on hiring, induction, and salary / incentive pay-out. As they scale-up quickly I have in mind some key areas of focus including the following:
- HR Strategy and org design – think through workforce need and organisation structure with clear roles, responsibilities, and reporting structure.
- Talent acquisition – develop recruitment plans for various roles, identify vendors where support is needed, help build employer brand to attract good talent, design robust on-boarding and induction for new hires, etc.
- Talent Development / Retention – Design required training programs including soft skills, leadership skills, etc. Define career path for various roles. Implement retention programs such as voice of employees, communication, mentorship, etc.
- Performance management – this is a huge area as well. Work with business to define performance metrics and targets, ensure structured review process including feedback, design incentive schemes linked to business outcome, etc.
- Culture and engagement – foster appropriate culture based on industry and company aspirations (including areas like collaboration, innovation, etc); have right recognition program to enhance engagement.
- Compensation & benefits – design competitive packages and benefits like insurance, wellness program, etc. Advise on ESOP plans for senior talent post benchmarking, etc.
What are the biggest advantages of having a Fractional CHRO compared to a full-time CHRO?
A full time CHRO with experience will look for stability and employee count before leaving the previous organization. Also, the cost will be 2 to 4x depending on the time they will devote to the role. A smaller start-up can’t afford the cost and will also find difficult to attract the right talent. Fractional CHRO will fit the bill with win-win for both sides. The CHRO can spent their time in other ventures or follow their other passion while the company gets an experienced hand at fractional cost.
How will you drive organizational change and transformation while working in a fractional capacity?
In a start-up the focus is on scaling up and setting the culture. The roles and hierarchies need to be defined and career paths need to be set first. Once the organization scales up, we’d do benchmarking and see what are the changes needed in organization structure and maybe look at delayering or automation of processes – it will typically happen once stability and maturity is achieved. Once the organization is bigger and scales-up it will need a full time CHRO, fractional roles may not work given the role expectations.
As a Fractional CHRO, how would you establish credibility and influence key stakeholders quickly
It’s the same process to follow whether you are a fractional CHRO or full-time CHRO. It requires investment of time in many areas including the following areas:
- Build credibility by understanding the business deeply, meet vendors, do field visits, spend time in listening tours as you meet key employees as well as identify some quick wins like obvious policy changes or streamlining hiring or employee referral process.
- Align HR strategy with business goals – this is a broad topic and will include areas like workforce planning (planning for talent right from hiring to retention to development), driving strong performance culture by aligning performance and rewards, and culture and engagement to ensure listening and addressing concerns as well as shaping workplace culture that is aligned to company’s mission and goals.
- Ensuring data driven decision making by using HR analytics to present workforce trends, attrition insights and productivity metrics to make informed decisions. Also, link HR metrics to business outcomes by showing how engagement, talent retention and leadership development impacts customer satisfaction and higher revenues for the company.
What leadership approach do you take to ensure alignment between HR, executives, and employees?
This is a very broad question and I believe the leadership approach should be strategic, agile and influential to ensure alignment. While I’ll need to factor that I’ll have less time given the fractional mandate that I’m signing up for, but some upfront investment may be needed to execute on the following elements of the strategy:
- Strategic Business Partnering – Align HR with Business Objectives by deeply understanding the organization’s strategic goals, speak the language of business to ensure measurable business outcomes such as revenue growth, productivity, cost efficiency, and employee engagement.
- Agile Leadership and Adaptability – I’ll prioritize quick wins (i.e., high-impact initiatives that can be implemented swiftly to build credibility and show immediate value) as well as adopt an iterative approach (i.e., use flexible approach to implement HR strategies, allowing for rapid adjustments based on feedback and evolving business needs)
- Culture Builder and Change Agent – HR should be custodian of culture along with the CXOs. I’ll ensure that I act as a steward of organizational culture by ensuring HR policies and leadership behaviours reflect company values and mission. Additionally, I’ll try to design programs that enhance employee experience across the employee lifecycle, from onboarding to offboarding.
There are many other softer areas like transparent communication, influence without authority, etc that will be more on-going elements thru-out my tenure.
What strategies do you use to drive accountability across teams while not being a full-time executive?
To me fractional vs. full-time is a matter of prioritisation. As the organisation scales up some of the areas will need more focus and will need a full-time CHRO or a very strong 2nd layer. Broadly speaking, some of the following elements will need priority to establish accountability –
- a) Establish Clear Expectations and Metrics – collaborate with executives and team leaders to define clear performance expectations tied to business goals as well as establish SMART goals.
- b) Implement a Robust Performance Management System – Use Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs) to track progress and outcomes; ensure regular performance reviews (monthly / quarterly based on goals) to maintain momentum and alignment; and finally use 360-degree feedback for holistic performance evaluations and peer accountability.
- c) Foster a Culture of Ownership and Accountability – setting the right ownership culture is critical. There should be no finger pointing internally. This is more long-term culture that needs transparent, fair, and consistent communication. Also, right recognition and consequences needs to be established to make it a long-term culture.
- d) Align Incentives and Rewards with Accountability – I’ll establish performance driven objectives and metrics that ensures transparency and clear accountability linked to business objectives. This will be not just for incentives but also for growth and salary changes.
Do you see more companies adopting the Fractional CHRO model as a new trend? Why or why not?
Yes, there is a growing trend of companies adopting the fractional Chief Human Resources Officer (CHRO) model – many of my friends are playing this role too. I believe this approach allows organizations to access high-level HR expertise on a part-time or project basis, offering several advantages like –
- Cost Efficiency: Engaging a fractional CHRO provides strategic HR leadership without the financial commitment of a full-time executive salary and benefits. This is particularly beneficial for small and mid-sized businesses with limited budgets.
- Flexibility and Scalability: Fractional CHROs offer adaptable solutions, scaling their involvement based on the organization’s evolving needs. This flexibility is advantageous for companies undergoing growth, restructuring, or those with fluctuating HR demands.
- Access to Specialized Expertise: Many of the fractional professionals bring a wealth of experience from various industries, providing diverse skill sets and innovative solutions tailored to specific business challenges. Their external perspective can introduce fresh insights and best practices.
The rise of the gig economy and technological advancements have further propelled the adoption of fractional executive roles, including CHROs. Companies are increasingly recognising the value of flexible, on-demand expertise to navigate complex HR landscapes without the long-term commitment of full-time positions.
Sugandh Bahl Vij, CXO Media
