Improving HR Business Partner Effectiveness

[Pages:28]Corporate Leadership Council?

Improving HR Business Partner Effectiveness

A Comprehensive Look at Competencies and Development Strategies

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The Corporate Leadership Council has worked to ensure the accuracy of the information it provides to its members. This report relies upon data obtained from many sources, however, and the Corporate Leadership Council cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the Corporate Leadership Council is not engaged in rendering legal, accounting, or other professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither the Corporate Executive Board nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in their reports, whether caused by the Corporate Leadership Council or its sources, or b) reliance upon any recommendation made by the Corporate Leadership Council.

Roadmap for Our Discussion

Understanding the HRBP Job Defining the HRBP Competency Model Assessing and Developing HRBPs

CLC1ABHXAP ? 2008 Corporate Executive Board. All Rights Reserved.

1

A Challenging Mandate

CHROs have asked their HR Business Partners to expand their work beyond just transactional HR activities...

HRBPs' Growing Importance

"We're relying more and more on our HR Business Partners to help drive strategy in the business units and to be the face of HR with our clients."

Chief Human Resources Officer Fortune 500 Bank

Strategy Changes the Role

"As the talent market gets tighter, we need to get more strategic, but that's not the role our HRBPs grew up with."

Vice President of HR Financial Services Organization

...but HR Business Partners have to learn a complex array of new competencies to perform well at old and new roles

HR Cannot Split the Job

"One thing we know for sure: we can't separate the strategic job out, and that means that our people are going to have a lot of different jobs to play."

Chief Human Resources Officer

Retail Member

New Competencies on the Horizon

"The role is continuing to evolve, and let's face it, we constantly add competencies, not subtract them."

Manager of HRBPs Financial Services Organization

CLC1ABHXAP ? 2008 Corporate Executive Board. All Rights Reserved.

2

Source: Corporate Leadership Council research.

Understanding Which Activities Matter Most

Four Roles That HR Business Partners Play

HRBP activities include operations managing, strategic partnering, employee mediating, and emergency responding

Operations Manager

OM

HRBP Operations Manager Activities ? Assessing employee attitudes ? Communicating organizational culture to employees ? Communicating policies and procedures to employees ? Ensuring HR programs are aligned with culture ? Keeping the line updated on HR initiatives ? Tracking trends in employee behaviors

Strategic Partner

SP

HRBP Strategic Partner Activities ? Adjusting HR strategies to respond to changing needs ? Developing the next generation of leaders ? Identifying critical HR metrics ? Identifying new business strategies ? Identifying talent issues before they affect the business ? Prioritizing across HR needs ? Redesigning structures around strategic objectives ? Understanding the talent needs of the business

Emergency Responder

HRBP Emergency Responder Activities ? Preparing for different situations ? Quickly responding to complaints ? Quickly responding to line manager questions ? Responding to employee needs ? Responding to manager needs

ER

Note: Factor analysis identifies which HRBP activities cluster together naturally. CLC1ABHXAP ? 2008 Corporate Executive Board. All Rights Reserved.

Employee Mediator

EM

HRBP Employee Mediator Activities ? Managing competing personalities in the organization ? Managing conflict between employees ? Managing conflict between managers ? Responding to organizational changes ? Resolving political problems in the execution of business plans

Source: Corporate Leadership Council's HR?Line Support Effectiveness Survey; Corporate Leadership Council research.

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Balancing the HRBP Job

The HRBP Job Is Actually Four Jobs

HRBPs must balance tensions between the different roles they play

Differences Between HRBPs' Four Roles

Operations Manager

Measures and monitors existing policies and procedures

OM

Execute Existing Plan

Measure and Monitor Policy Management

Craft and Implement Chronic Challenges

Strategic Partner Crafts and implements

SP enterprise-wide strategies

to chronic challenges

EnterpriseWide

React to Variations

Emergency Responder

ER Provides immediate fixes

to acute emergencies

Acute Challenges Immediate Fixes

CLC1ABHXAP ? 2008 Corporate Executive Board. All Rights Reserved.

People Management

Individual Employees

Sustained Solutions

Employee Mediator

EM Creates sustained solutions

to individual employee challenges

Source: Corporate Leadership Council's HR?Line Support Effectiveness Survey; Corporate Leadership Council research.

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Identifying the Contribution of Each Activity to HR Effectiveness

HRBPs Drive HR?Line Support Effectiveness Across All Four Roles

While strategic HR activities consistently have a greater impact on HR?Line support effectiveness, transactional activities remain important

HRBP Activities' Impact on HR?Line Support Effectiveness

Strategic Partner

(Average Impact = 33%)

50%

50%

Operations Manager (Average Impact = 11%)

Emergency Responder (Average Impact = 8%)

Employee Mediator (Average Impact = 8%)

7% 35% 35% 31%

38% 37% 35% 35% 31%

38%

37%

Strategic activities provide an t3o5e%ffec3ti5ve%ness because they

extra boost provide

longer-term so3lu1ti%ons with high returns...

Maximum27% 26% 26%

Impact on HR? 25%

Line Support

20%

Effectiveness

27% 26% 26%

25%

20%

15% 11% 10% 9%

4% 3%

27% 26% 26%

20%

1157%% 1113%% 1101%% 9%

46%%

6% 3%

...but HR's essential day-today tasks are indispensable to supporting the line.

1157%% 11% 111131%%% 111010%%% 9%

5%

463%%%

6% 3%

17%

11% 1131%% 1110%% 9%

5%

6% 3%

6%

0%

0%

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Note: Each bar represents a statistical estimate of the maximum total impact on strategic role effectiveness that each driver will produce. The maximum total impact is calculated by comparing two statistical estimates: the predicted impact when an HRBP scores "high" on a driver, and the predicted impact when an HRBP scores "low" on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with appropriate control variables.

CLC1ABHXAP ? 2008 Corporate Executive Board. All Rights Reserved.

5

Source: Corporate Leadership Council's HR?Line Support Effectiveness Survey; Corporate Leadership Council research.

Identifying Time Spent on Each Role

HRBPs Must Divide Time Between Four Roles

Despite the importance of the Strategic Partner role, HRBPs spend much more time on operations management

Average HRBP (Without Managerial Responsibility) Time Allocation per Week

(Average Hours Worked per Week = 42)

50

6

Average HRBP (With Managerial Responsibility) Time Allocation per Week

(Average Hours Worked per Week = 45)

Strategic Partner

Operations Manager

Emergency Responder

8

Employee Mediator

Hours 25 26

6 4

0

CLC1ABHXAP ? 2008 Corporate Executive Board. All Rights Reserved.

24

Even HRBPs with

substantial managerial

duties still divide their

time between all four

roles across a typical

workweek.

8

5

Source: Corporate Leadership Council's HR?Line Support Effectiveness Survey; Corporate Leadership Council research.

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