Introduction to the Strategic HR Business Partner

Strategic HR Business Partners help the company’s leaders and managers align their people-related decisions with business goals. They develop, implement and manage effective recruiting strategies, employee retention programs and compensation models.

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They also facilitate the development of a high-performance work culture and employee engagement. These activities require advanced skills in human resources, such as: business acumen, communication, and relationship-building.

Strategic Thinking

In order to truly be a strategic partner, HR Business Partners need to think strategically, and have the skills needed to translate the company’s goals into human resources initiatives. They must also have the ability to identify and assess future challenges and opportunities, including workforce trends and technology adaptation. Having strong communication and relationship-building skills is necessary for HR Business Partners to effectively collaborate with diverse stakeholders and build trust. They should be able to help managers develop and implement talent strategies that will support the company’s goals. Additionally, they should be able to design and conduct frequent "pulse" surveys that will provide the data they need to respond quickly to issues as they arise.

Embedded HR Business Partners need to be able to prioritize and determine which tasks they should spend time on as well as which projects they should defer or cancel. This requires a mindset shift from viewing administrative work as "urgent" to recognizing that not all HR work is equal. It also means being comfortable with the concept of a “future lens,” which is critical for understanding the pace and progress of organizational change.

Lastly, a strong grasp of financials and an ability to be a “cash advocate” are important for embedded HR Business Partners to have. This allows them to make informed decisions about what to invest in, when to defer spending, and how to measure ROI on their investments.

Business Acumen

Business acumen is a necessity for HR leaders, enabling them to translate business needs into human resources strategies and measure their impact. It involves a portfolio of knowledge and skills, including strategic thinking and relationship-building. It enables the HR team to contribute to the success of the company, align internal efforts with profitability and empathize with the financial goals of customers.

This skill requires strong communication and an understanding of the company’s products and services. It also includes an understanding of budgeting, forecasting and financial analysis. A good strategic HR Business Partner knows how to align internal processes with the company’s profitability goals and understands how each process impacts P&L.

Developing acumen requires time, commitment and active learning. Taking advantage of opportunities for learning from mentors who have experience in your industry and company is a great way to accelerate your acumen development. Keeping up with the business landscape and your competitors is crucial as well. Reading business publications and attending conferences, networking events and webinars can h​elp.

In addition, it is important to understand the role and responsibilities of your key executives and how their decisions impact the business. Having strong business instincts allows you to be a force multiplier, and it increases the legitimacy of your role in the organization. It will also make it easier for you to make sound decisions, as your business acumen improves.

People Management

HR Business Partners need to be adept at managing employees and building a strong team culture. This involves ensuring that people are in the right roles, developing leadership potential, and addressing performance issues. It also means fostering growth and encouraging innovation.

Another necessary skill is ensuring that the company’s corporate culture stays consistent and supports its mission and values. This involves communicating the culture to internal and external stakeholders, promoting it through programs, and ensuring that all employees understand what it is all about.

Lastly, a Strategic HR Business Partner needs to be familiar with employment laws and regulations. This includes understanding the legal implications of automation and AI, as well as keeping up-to-date with new HR tools and technology.

For HR Business Partners to be effective, they need to focus less on administrative work and more on strategic projects that add value to the organization. To do that, it is important to rethink how the role is structured. A model that clearly defines the responsibilities and accountability of HR Business Partners can help avoid the “jack of all trades” trap. This approach allows HR to be more proactive and to create greater alignment with the business.

Organizational Development

HR departments can provide a powerful competitive advantage by delivering human capital management strategies that directly impact key business goals. However, many organizations struggle to make the transition from traditional siloed HR operations to strategic partners. This can be a result of a lack of organizational culture change or a lack of HR leadership support for this transformation. In this episode of America Back to Work, we speak with HR expert Tiffany Montgomery who shares her insights into how to position HR as a strategic partner and create value for the organization.

HR Business Partners work as internal consultants to business leaders, guiding them through people-related challenges and issues that affect productivity, performance, and engagement. They collaborate with managers on employee relations and development initiatives, help them navigate the people aspects of changing business strategies, and ensure that company policies are aligned with legal and ethical requirements.

A critical capability for the HR Business Partner is organizational development, which focuses on creating a positive working environment through employee feedback systems, team-building activities, and developmental opportunities that support higher levels of productivity, engagement, and retention. OD also addresses how to improve organizational structures and processes that impact the performance of individuals, teams, and the overall organization.

This requires a solid understanding of what the organization’s business objectives are, as well as how they are being fulfilled and what needs to be improved or changed to enable the achievement of those objectives. This is another reason it is critical for HR Business Partners to attend strategy meetings and build strong relationships with business leaders to gain a full understanding of what business needs are being met, and where the gaps are in terms of human resources’ contributions to those needs.

Legal and Ethical Compliance

HR Business Partners must be able to interpret workforce data and turn it into actionable strategies that empower teams to improve performance. They also need to be able to promote a culture of diversity and inclusion, ensuring that HR is a positive influence in the organization.

HR BPs with strong interpersonal skills can build credibility and foster trust. They can use these skills to communicate policies and initiatives effectively across the organization, as well as support managers during change management processes. They must be able to identify high-potential employees and design leadership development programs to nurture future leaders within the organization.

Finally, it is necessary for HR Business Partners to understand and comply with labor laws and ethics, as they may need to implement or modify policies based on legal changes. This requires a thorough understanding of employment law, as well as the ability to monitor compliance with labor standards and ethical guidelines.

While there are many permutations of the HR Business Partner role, there is consensus that the traditional administrative HR roles should be replaced by a more strategic focus. The most effective HRBPs have a strong business acumen, are able to translate human resources processes into business outcomes, and have the right blend of soft and technical expertise. By focusing on these competencies, HRBPs can move away from simply handling administrative tasks and become an integral part of the business team.

Analytics

The HR Business Partner’s role is to be a conduit between the business and the more centralized HR function. They’re an internal consultant that helps leadership navigate and execute human resources-related initiatives with impact. They’re also the “go to” person for any questions about employee relations, culture, compliance, or even leadership development and management.

Strategic HR Business Partners have a unique perspective that allows them to see how their people-related activities contribute to the overall success of an organization. They’re able to identify key performance indicators and create metrics that support those goals. Additionally, they understand how to use data to inform decision-making and help leaders develop their teams.

Achieving the status of strategic HR Business Partner is possible but only if the HR department and its leadership team are ready to take on a new mindset. The goal is to enable these HR colleagues/leaders to become a true business partner, not an additional set of hands to carry out transactional work.

This means making the appropriate investments in developing these individuals to ensure that they have time and space to focus on strategic activities. This could include implementing technology that systematizes the transactional creating more time for the strategic, and/or providing a more flexible work environment so these leaders can be nimble in meeting company needs. It’s also critical to be clear about what a strategic role is for an HR professional.