In knowledge-driven companies, intellectual and social resources are the key drivers of success, rather than financial and physical capital (Finegold and Frenkel 2006). When success depends primarily on knowledge creation, knowledge sharing, and learning, it is crucial that innovative individuals are attracted, motivated, developed, and retained by firms in accordance with their strategies (Hall and Mairesse 2006). This was confirmed in an interview with the CHRO of a pharmaceutical company. He additionally explained that HR issues are not only more important, but also more challenging. Since knowledge-oriented workers more heavily prioritize interesting and challenging work environments, appropriate work-life-balance, and competence-based pay, managing them requires more sophisticated motivational and performance management measures. Further, it demands a categorized workforce structure that is managed differently depending on whether employees fulfill operational or innovative tasks (Finegold and Frenkel 2006). Managing successful knowledge-management systems requires the strong commitment of employees, which in turn is dependent on well-elaborated HRM concepts and frameworks (Hislop 2003). As Kostova et al. (2004) stated, “The importance of the human element in building effective knowledge-management systems cannot be overstated” (p. 284). A CHRO can support the handling of all of the implications of knowledge intensity. Thus, we propose the following hypothesis: