CEO, CFO, or COO? The Debate Over Who HR Should Report To

Every People Team looks different. Some put more emphasis on engagement, while others focus more on finding efficiencies. Some are only a few people while others run deep. And as a company evolves, so does its people team—adapting to new business priorities, challenges, and goals.

HR is a unique function in that its responsibilities span the entire organization, touching everything from compensation and compliance to morale and engagement. So, where exactly does HR fit in the org chart?

At CandorIQ, we believe HR leaders are the unsung heroes of a company. Their work is integral to business success, so reporting directly to the CEO generally makes the most sense (and the internet largely agrees). Yet, while many HR leaders report directly to the CEO, there’s been growing discussion about CHROs, CPOs, and VPs of People reporting to COOs or CFOs instead.

So, what’s the right move? And when might it make sense to shift reporting structures?

Who Might a CHRO or CPO Report To, and Why?

Depending on a company’s size, industry, and leadership philosophy, HR can report into different executives. Here are the most common reporting structures:

CEO
Reporting to the CEO positions HR as a strategic partner, ensuring that talent, culture, and compensation align with business goals. This structure helps HR:

• Influence high-level decision-making
• Manage a company’s largest expense—employee compensation—as an investment, not just a cost
• Reinforce that employees are a core company priority

COO
In some cases, HR reports to the COO, particularly when operational efficiency and process optimization are key priorities. This structure can work well when:

• HR is closely tied to workforce planning and operational execution
• The COO is deeply involved in company culture and employee experience

CFO
HR reporting to the CFO is often seen in companies with a heavy focus on cost control and financial planning. This structure is most common when:

• Compensation planning and budgeting are primary HR functions
• The company is smaller and lacks a dedicated finance business partner for HR
• Compliance and risk management are driving HR decisions

My Take: HR Report to the CEOWhile every company is different, having HR report directly to the CEO offers major advantages.

1. HR as a Strategic Partner
   Employees are a company’s biggest investment. When HR leaders have a direct line to the CEO, they’re better positioned to influence company-wide strategies, rather than being viewed as an administrative or compliance function.
2. Clear Prioritization of People
   Org structure is a powerful way to communicate what a company values. Having the CHRO/CPO report to the CEO signals that employee experience, talent strategy, and culture are top priorities.
3. Holistic Business Alignment
   People strategies impact every aspect of the business—from hiring and retention to engagement and performance. Direct access to the CEO ensures HR can align these strategies with the company’s vision and goals.

Regardless of Reporting Structure, Collaboration Is KeyAt the end of the day, the reporting structure matters less than how well HR collaborates with leadership across departments. A CHRO or CPO needs to work closely with finance, operations, and other key stakeholders to build a cohesive strategy for managing talent and driving business success.The best HR leaders don’t just focus on policies and processes—they build bridges between departments, advocate for employees, and drive meaningful business outcomes. Whether they report to the CEO, CFO, or COO, their impact should be felt across the entire organization.So, is it a red flag if HR doesn’t report to the CEO? Not necessarily—there’s hopefully a good reason. But if HR isn’t empowered to contribute strategically and advocate for employees at the highest level, that’s a much bigger concern.