hr business partner model case study

HR’s new operating model

The way in which organizations manage people used to be relatively straightforward. For more than two decades, multinational companies generally adopted a combination of HR business partners, centers of excellence, and shared service centers, adjusting these three elements to fit each organization’s unique nature and needs.

Today, this approach—introduced by Dave Ulrich in 1996 1 David Ulrich, Human Resources Champions: The Next Agenda for Adding Value and Delivering Results , first edition, Boston, MA: Harvard Business Review Press, 1996. —is rapidly evolving. In interviews with more than 100 chief human resources officers (CHROs) and senior people leaders from global multinational businesses, we identified five HR operating-model archetypes that are emerging in response to dramatic changes in business and in the world—including heightened geopolitical risks, hybrid working models, and the rise of majority-millennial workforces.

These emerging operating models have been facilitated by eight innovation shifts, with each archetype typically based on one major innovation shift and supported by a few minor ones. The key for leaders is to consciously select the most relevant of these innovation shifts to help them transition gradually toward their desired operating model.

Eight innovation shifts driving HR’s new operating models

Today’s increasingly volatile, uncertain, complex, and often ambiguous business environment is forcing companies to transform at an unprecedented pace. The global COVID-19 pandemic and rapid evolution of workplace technology have accelerated the adoption of various alternative, hybrid working models—as well as new challenges in monitoring employee conduct and performance. The emergence of majority-millennial workforces has led to a profound shift in employee preferences. And the “Great Attrition” of workers , 2 Aaron De Smet, Bonnie Dowling, Marino Mugayar-Baldocchi, and Bill Schaninger, “‘ Great Attrition’ or ‘Great Attraction’? The choice is yours ,” McKinsey Quarterly , September 8, 2021. exacerbated by demographic developments in many parts of the world, has intensified existing talent shortages.

HR plays a central role in navigating this upheaval, creating a need for the function to rise to a new level of adaptability and responsibility . 3 Laura Blumenfeld, Neel Gandhi, Asmus Komm, and Florian Pollner, “ Reimagining HR: Insights from people leaders ,” McKinsey, March 1, 2022. While every organization has its own trajectory and HR operating model, our interviews with senior leaders revealed that organizations are innovating in ways that are collectively changing the HR function from the “classic Ulrich model”:

• Adopt agile principles to ensure both strict prioritization of HR’s existing capacity and swift reallocation of resources when needed, enabling a fundamentally faster rate of change in the business and with people and how they work.
• Excel along the employee experience (EX) journey to win the race for talent in the time of the Great Attrition , 4 Aaron De Smet, Bonnie Dowling, Marino Mugayar-Baldocchi, and Bill Schaninger, “‘ Great Attrition’ or ‘Great Attraction’? The choice is yours ,” McKinsey Quarterly , September 8, 2021. enabling both employee health and resilience.
• Re-empower frontline leaders in the business to create human-centric interactions, reduce complexity, and put decision rights (back) where they belong.
• Offer individualized HR services to address increasingly varied expectations of personalization.
• ‘Productize’ HR services to build fit-for-purpose offerings with the needs of the business in mind, and to enable end-to-end responsibility for those services through cross-functional product owner teams in HR.
• Integrate design and delivery with end-to-end accountability to effectively address strategic HR priorities, reduce back-and-forth, and clarify ownership.
• Move from process excellence to data excellence to tap into novel sources of decision making using artificial intelligence and machine learning.
• Automate HR solutions to drive efficiency and capitalize on the power of digitalization in HR.

These innovation shifts are driving the emergence of new HR operating models, albeit with different degrees of influence depending on the nature of individual organizations (Exhibit 1). In analyzing the drivers, we identified five HR operating archetypes.

Five emerging HR operating models

These eight innovation shifts have enabled companies to rethink how they manage their people and the best way to do so. Exhibit 2 shows the five emerging HR operating models we identified, which are all enabled by two core elements: a strong, consistent data backbone and a user-friendly, highly reliable service backbone. When asked which two archetypes best fit their HR operating model, 48 percent of people leaders attending a recent webinar selected Ulrich+, 47 percent EX-driven, 36 percent leader-led, 31 percent agile, and 6 percent machine-powered. 5 Reimagining HR Webinar Survey, McKinsey, November 2022, n = 140 senior people leaders. Figures do not sum to 100%, because of the possible selection of multiple answers.

This model is an adaptation of the classic Ulrich model, with HR business partners developing functional spikes and taking over execution responsibilities from centers of excellence (CoEs). In turn, CoEs are scaled down to become teams of experts and selected HR business partners. They are supported by global business services and have a digital operations backbone. Many CHROs believe the classic Ulrich model is not up to solving today’s HR challenges, with HR business partners lacking the skills and time to keep up with the latest HR developments. Inflexible CoEs limit agile reactions, while other organizational boundaries have steadily become more permeable. Multinational businesses with mature and stable business models are often the ones that experience these pain points.

An agile transformation

A global financial institution underwent an agile transformation with a focus on IT delivery, supported by an agile HR operating model with 2,000 staff members. It first structured its HR function along the employee life cycle, aligning resources to the employee experience (EX) journey: when they join, work, develop, perform, and exit. The evolution to an agile model was supported by three HR innovation shifts:

• reducing the number of handovers by integrating run (servicing and operations) and change (product delivery) activities into “workstreams”
• setting up workstreams with end-to-end service responsibility (for example, design and delivery of recruiting), common goals, and steering
• allocating resources to agile pods with product crews for each workstream and agile ways of working

Projects that cut across multiple product crews were supported with a center-of-excellence initiative manager at the divisional level, and the stream-by-stream transition plan was phased over two years.

This model calls for a smaller number of HR business partners, with an emphasis on counseling top management, while CoE professionals focus on topics such as data and analytics, strategic workforce planning, and diversity and inclusion. The freed-up resources are pooled to implement cross-functional projects. CHROs who favor this operating model believe that HR needs to accelerate to keep up with the increased focus on execution exhibited on the business side and to prevent HR from hindering rapid transformation. Companies are applying this and other agile methodologies when experiencing rapid growth or discontinuity. (For an example of this model, see sidebar “An agile transformation.”)

Optimizing the employee experience

A global software company adopted a new business strategy to maximize the customer and employee experience, committing to a two-year transformation journey. Its first step was to mirror the customer experience for employees by identifying and revamping “moments that matter” along the employee life cycle. Three HR innovation shifts facilitated this: persona-driven HR services began following a customized approach; product owners took on end-to-end responsibility over HR concept, design, and delivery to deliver moments that matter; and HR, IT, and business operations combined into a comprehensive data function.

This model is meant to help CHROs gain a competitive advantage by creating a world-class EX journey. Putting EX first means allocating disproportionate resources toward “moments that matter.” For example, HR, IT, and operations experts could be granted full responsibility to jointly plan, develop, and roll out a critical onboarding process. By creating a world-class EX, HR becomes the driving force in bridging cross-functional silos and in overcoming the patchwork of fragmented data and processes that many organizations suffer from today. The companies employing this model are highly dependent on their top talent, with a small set of clearly defined competencies. (For more on this model, see sidebar “Optimizing the employee experience.”)

In this model, CHROs transition HR accountability to the business side, including for hiring, onboarding, and development budgets, thereby enabling line managers with HR tools and back-office support. This archetype also requires difficult choices about rigorously discontinuing HR policies that are not legally required. Too much oversight, slow response times, and a lack of business acumen in HR have led some companies to give line managers more autonomy in people decisions. Companies exploring this choice typically have a high share of white-collar workers, with a strong focus on research and development.

Machine-powered

With this model, algorithms are used to select talent, assess individual development needs, and analyze the root causes of absenteeism and attrition—leaving HR professionals free to provide employees with counsel and advice. As digitalization redefines every facet of business, including HR, CHROs are looking for ways to harness the power of deep analytics, AI, and machine learning for better decision outcomes. Organizations that are experimenting with this are primarily those employing a large population of digital natives, but HR functions at all companies are challenged to build analytics expertise and reskill their workforce.

Innovation shifts shaping HR model archetypes

While innovation shifts have shaped the traditional HR operating model and led to the emergence of new archetypes, not all innovation shifts are equal. Each archetype is typically based on one major innovation shift and supported by a few minor ones (Exhibit 3).

For example, a leader-led archetype is mainly shaped by the shift of empowering the leaders and the front line. At the same time, it gives more flexibility to the needs of the individual (the “cafeteria approach”) because leaders have more freedom; it also builds on digital support so leaders are optimally equipped to play their HR role. Alternatively, an agile archetype is strongly focused on adapting agile principles in HR, but it typically also aims to move toward a productized HR service offering and strives for end-to-end accountability.

The critical decision for senior people leaders is to consciously select the most relevant of these innovation shifts to transition gradually toward their desired operating-model archetype. For example, the leader-led model puts business leaders, rather than HR, in the driver’s seat, allowing line managers to choose the right HR offerings for their individual teams. And for companies that decide to deploy machine-powered HR, the key is building and relying on deep analytics skills. This model uses integrated people data to make targeted, automated HR decisions.

In large, diversified organizations, CHROs may find that different archetypes fit the differentiated needs of specific businesses better and may adopt a combination of HR operating models.

Transitioning to a target operating model

Transitioning to a future-oriented archetype is typically a three-step journey. First, CHROs and their leadership teams align on the right operating-model archetype for their organization based on the most pressing business needs, expectations of the workforce, the wider organizational context, and the company’s dominant core operating model. In large, diversified organizations, CHROs may find that different archetypes fit the differentiated needs of specific businesses better and may adopt a combination of HR operating models.

Second, HR leadership teams prioritize the three or four most relevant innovation shifts that will move their function toward their chosen operating-model archetype. When doing this, people leaders need to reflect on strategic HR priorities and, even more important, the shifts required to establish the operating model given its feasibility, the potential limits to the speed of implementation, and the magnitude of change. (Today, we find that the capacity to change the HR information system is often the most limiting factor.) For example, if a company is operating in a traditional hierarchical “command and control” way, the sole shift of HR into an agile archetype requires profound and demanding changes to ways of working, likely beyond only HR. Similarly, a business accustomed to a “high touch, concierge service” HR approach will find that a shift to a leader-led archetype is challenging and requires significant effort to implement.

Finally, teams think comprehensively about the transition journey, working toward core milestones for each of the prioritized innovation shifts individually and ensuring a systemic, integrated transformation perspective at the same time. This requires mobilizing for selected shifts, building new capabilities, and acting on an integrated change agenda in concert across business and HR.

Sandra Durth is a senior expert and associate partner in McKinsey’s Cologne office, Neel Gandhi is a partner in the New York office, Asmus Komm is a partner in the Hamburg office, and Florian Pollner is a partner in the Zurich office.

The authors wish to thank Fabian Schmid-Grosse and Christian Winnewisser for their contributions to this article.

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Seven lessons learned from the HR business partner model

Having observed, studied and shaped the business partner model through rigorous empirical research and extensive work within specific organisations, done seven rounds of the HR Competency study, which studies the competencies of HR professionals and the capabilities of HR departments and worked on more than 100 HR transformations, we reflect on what we have learned about the relevance of the business partner model today

Dave Ulrich

1. The business partner model is not unique to HR; all staff functions are trying to find ways to deliver more value to either top line growth and to bottom line profitability.

Information systems, finance, legal, marketing, R&D and HR are all under scrutiny and pressure to create greater value for their companies. This is especially true of transaction and administrative work that can be standardized, automated, re-engineered or outsourced.

2. The intent of the business partner model is focus more on deliverables (what the business requires to win) than doables (what HR activities occur)

We have seen four phases of deliverables, moving from administrative efficiency to functional excellence to strategic HR to HR outside in. Instead of measuring process (for example, how many leaders received 40 hours of training), business partners move to measure results (for example, the impact of the training on business performance), then move to how training builds external value with customers and investors. For example, when HR builds better leadership capital, investors have more favourable images of the firm which shows up in market value .

3. Being a business partner may be achieved in many HR job categories 

As business partners, corporate HR professionals define corporate-wide initiatives, represent the company to external stakeholders, meet the unique demands of senior (and visible) leaders, leverage cross unit synergy, and govern the HR function. Embedded HR professionals work as HR generalists within organisation units (business, function, or geographic). They collaborate with line leaders to help shape the business strategy, conduct organisational diagnoses to determine which capabilities are most critical, design and deliver HR practices to accomplish strategy. HR specialists work in centers of expertise where they provide insights on HR issues such as staffing, leadership development, rewards, communication, organisation development, benefits, and so forth and they advise business leaders and HR professionals on how to turn insights into impact. HR professionals who work in service centers add value by building or managing technology-based e-HR systems, processing benefit claims and payrolls and answering employee queries. These individuals may work inside or outside the company.

4. HR professionals as business partners have unique information, insights, and recommendations to deliver competitive advantage  

In formal and informal business discussions, each staff group brings unique insights to drive business results: finance talks about economic performance with information about revenues, costs, and financial returns; marketing discusses customers with recommendations on targeting key customers, customer response (e.g., net promoter score), and customer connection; operations makes recommendations and systems, quality, and supply chain. When HR partners in these strategy discussions, we propose that they provide insight, information, and recommendations on:

• Talent: HR professionals are centrally involved in providing the right people with the right skills in the right job at the right time. Talent insights capture future competence as well as commitment and contribution. Upgrading the employee experience has been a long term important part of being a business partner 
• Leadership: HR professionals help prepare not just key individual leaders, but the collective leadership throughout the organization. They ensure that leaders have the knowledge, skills, and abilities to meet future demands and align with customer expectations 
• Organisation capabilities: HR professionals partner with line managers to identify and create organisation capabilities such as speed/agility, innovation, risk, collaboration, information leverage, culture/shared mindset, accountability, and efficiency. These capabilities become the identity and personality of the organisation.

As business partners, HR professionals provide analytics, insights, and recommendations on talent, leadership, and capability to deliver business results and to serve all stakeholders.

5. As talent, leadership, and capability issues increase in business relevance, HR professionals may help respond by being both architects and anthropologists

As architects, HR professionals design, blueprint, and facilitate investments in talent, leadership, and capability. As architects, HR brings what is called structured information where the information is in a spread sheet which allows for traditional quantitative statistical analyses to find trends. As anthropologists , HR professionals increasingly look beyond the borders of the organization to identify what external stakeholders (customers, investors, communities, regulators) and what business trends (social, technological, economic, political, environmental, and demographic) will shape future business success. In this case, HR often sources unstructured data where they use qualitative insights to anticipate trends.

6. As with almost any change, we have seen an inevitable 20-60-20 pattern for HR professionals to fully adopt the business partner opportunities

Indeed, 20% of HR professionals get it, do it, and act as business partners while 20% will unlikely ever get there for a host of reasons (personal inability, lack of desire or organisational lack of support) and 60% are learning and moving in the right direction. While we see the HR profession moving in the right direction, some may never make it. Sometimes, critics of HR like to focus on the lingering 20% laggards and claim that HR professionals have not improved. This is as inaccurate as focusing on the 20% innovators and claiming HR has fully arrived. The business partner model is empirically supported and more of the 60% are making positive progress. A decade ago there was a clamor to 'get to the table' and to become part of the business. Today, most effective HR professionals are already at the table and they need to be clear about how their insights on talent, leadership, and capability will deliver business results.

7. Being a business partner requires HR professionals to have new knowledge and skills

There are many efforts to determine the competencies for effective HR professionals. Through the University of Michigan, the RBL Group, and partners throughout the world, we have spent 30 years studying (theory, research and practice) how competencies for effective HR professionals drive personal effectiveness, stakeholder results, and business performance 

Summary of business partner insights :

HR professionals must evolve into being the best thinkers in the company about the human and organization side of the business. The nature of business is dramatically changing. Changes are occurring in virtually every element of the social, political, and economic environments that impact business. Under such conditions, the human side of the business emerges as a key source of competitive advantage. Therefore, HR specialists in the logic, research, and processes of human and organisation optimisation become central to business success.

Many HR professionals are doing exceptional HR work. From ING in Hong Kong, to ICICI and TATA in India, to ADIA in the United Arab Emirates, to MTN in South Africa, to DHL and BAE Systems in the UK, to Arcos Dorados and América Movil in Latin America, and to Walgreens, Intel, and GE in the United States and in thousands of other companies around the world, HR professionals are making enormous progress towards delivering value as business partners. 

Human Resources As Business Partner by Dr. Tony Miller

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The HR Business Partner in Action Case Study

7.1   a quick recap.

So far in the book we have looked at:

• The design of HR to be effective beyond 2017

• How the HR strategic model works

• The specific skills needed to be an HR Business Partner

• Some of the processes that you need to master

• The importance of showing results in monetary terms

• Throughout the book we have stressed the need for creativity and innovation

What exactly does the HR business partner do on a regular basis and how does the job work in practice?

7.2   Putting HR the Business Partner into Practice

Based on a 2017 oil industry example, company size + 20,000 employees.

The company is a large employer employing over 20,000 staff. The HR function is ...

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Dave Ulrich

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Wayne Brockbank

The business partner model: 10 years on - Lessons learned

Dave Ulrich's business partner model was launched to great acclaim in 1997 in the book, Human Resource Champions. Here, Ulrich and Wayne Brockbank, fellow Ross School of Business professor at the University of Michigan, answer recent critics, who say it just doesn't work, by reflecting on what has been learned about the relevance of the model over the past decade

The business partner model is not unique to HR; all staff functions are trying to find ways to deliver more value to either top line growth or to bottom line profitability.

The need for greater business performance has put all support functions under a microscope. If they are not delivering definitive and sustainable value, they have been given the mandate to change, be eliminated or be outsourced.

Information systems, finance, legal, marketing, research and development and HR are all under scrutiny and pressure to create greater value for their companies. This is especially true of transaction and administrative work that can be standardised, automated or outsourced.

2. The aim of the model

The aim of the business partner model is to help HR professionals integrate more thoroughly into business processes and to align their day-today work with business outcomes.

This topic has been approached from several perspectives. For example, we have talked about focusing more on deliverables (what the business requires to win) than do-ables (what HR activities occur).

Instead of measuring process (for example, how many leaders received 40 hours of training), business partners are encouraged to measure results (for example, the impact of the training on business performance).

This approach focuses on HR's role in the creation and maintenance of the capabilities that an organisation must have in order to deliver value to its customers, shareholders, employees and communities.

More on the HR business partners and the Ulrich model:

HR business partner models fail to add strategic value, study says

Dave Ulrich on the evolution of the profession

HR in the boardroom: four tips for maximising HR’s business impact

3. Four main HR roles

Being a business partner may be achieved in many HR roles. HR professionals tend to fit into four categories: corporate HR; embedded HR; HR specialists; and service centres.

Corporate HR professionals define corporate-wide initiatives, represent the company to external stakeholders and meet the unique demands of senior leaders.

Embedded HR professionals work as HR generalists within organisation units (business, function, or geographic). They collaborate with line leaders to ensure that their organisations deliver value to stakeholders by defining and delivering competitive strategies.

They help shape the business strategy, conduct organisational diagnoses to determine which capabilities are most critical, design and deliver HR practices to accomplish strategy, coach business leaders to behave congruently with strategy, and manage the strategy development process.

HR specialists work in centres of expertise where they provide technical insights on HR issues such as staffing, leadership development, rewards, communication, organisation development, benefits, and so forth. They deliver value when their recommended HR practices are on the forefront of their respective areas of expertise and when they create new practices that add value beyond that of their competitors.

HR professionals who work in service centres add value by building or managing technology-based e-HR systems that enable employees to manage their relationship with the firm. They govern activities such as processing benefit claims and payrolls and by answering employee queries.

These individuals may work inside or outside the company. They deliver value to all stakeholders by reducing costs of processing employee information and by providing accurate and timely services.

Sometimes, one of the above roles is uniquely defined as business partnering when, in fact, each of the roles is a partner to the business as they work to create value for employees, customers, shareholders, communities and management.

4. Talent and organisational capabilities

Business success today depends more than ever on softer agendas such as talent and organisation capabilities. HR professionals are centrally involved in providing the right people with the right skills in the right job at the right time. The 'war' for talent rages and will likely continue in an increasingly global knowledge economy.

HR professionals also partner with line managers to identify and create capabilities such as speed to market, innovation, leadership, collaboration, fast change and culture management. These less tangible business activities increasingly have an impact on shareholder value and are top of mind among CEOs and general managers.

Effective HR professionals not only work with business leaders to draft strategies , they also focus and collaborate on how to make strategies happen.

Talent and organisational issues become the mechanisms to best deliver a strategy. Business leaders are increasingly attuned to the importance of talent and organisation as a way to turn aspirations into actions and strategic intent into business results as they co-ordinate closely with their HR professionals.

5. Intellectual and process leadership

As talent and organisation issues increase in business relevance, HR professionals may help respond by being architects , designers and facilitators. General managers ultimately are accountable and responsible for talent and organisation issues.

Just as they turn to senior staff specialists in marketing, finance and IT to frame the intellectual agenda and processes for these activities, so they turn to competent and business-focused HR professionals to provide intellectual and process leadership for people and organisational issues.

Effective HR business partners are those who respond to these general management challenges. The business partner model focuses on the issues that general managers need help with to deliver business results. And because of the changing nature of business, the requirements of a business partner model are more pressing than ever before.

6. Some will never be business partners

There is concern that some HR professionals cannot perform the work of a business partner and cannot link their day-to-day work to business results. Our research shows that the HR profession as a whole is quickly moving to add greater value through a more strategic focus.

We have shown that high-performing HR professionals have greater business knowledge than their low performing counterparts. Thus, there is empirical evidence to support the business partner model.

But also empirically supported is that some HR professionals are not able to live up to the new expectations. This dynamic is true for almost all change efforts. In any change there is almost a 20-60-20 grouping of those involved.

The top 20% of individuals asked to change are already doing the work the change requires. The lower 20% will never get there. With training, coaching and support, the other 60% can make the move.

Occasionally, some pundits and researchers selectively report either extreme: the 20% who either can or cannot make the change. Those that want to find failure focus their reporting on the bottom 20%; those that want to find success focus on the top 20%.

Likewise, some leaders often like to spend time with the successful 20% and claim they had caused it when they had not. Leaders often feel forced to spend time with the bottom 20% and try to ensure universal acceptance when they cannot. They should spend time with the middle 60% and work to inform, motivate and move them to be more successful. The same is true for HR professionals.

As with all support functions, it is undoubtedly the case that some HR professionals may never become business partners. They are mired in the past administrative HR roles where conceptually or practically they cannot connect their work to business results.

Other HR professionals are natural business partners, seeking first and foremost to deliver business value through the work that they do. Most are somewhere in between.

We see the majority of those in between moving towards rather than away from business relevance. If you look at the content of HR conferences over the past 20 years, it is clear that a shift is occurring in what HR professionals want and need to know. A decade ago there was a clamour to 'get to the table' and to become part of the business.

Today, many effective HR professionals are already at the table and need to know what to do now they are there.

Being at the table poses a new set of challenges in language and logic of being an HR professional. For example, historically many HR professionals use the term 'customer' to refer to internal customer. At the strategy table , the customer is generally the external retailer or end users.

When HR professionals are at the table, the question, 'what do we need to do to make our customers happy?', has a different meaning from that of HR's traditional meaning. As HR professionals assume the business partner role, the standards for HR success shift along with the expectations of their language.

7. Don't blame the gadgets - teach the users to use them

Being a business partner requires HR professionals to have new knowledge and skills. Traditionally, HR professionals have tended to focus on negotiating and managing terms and conditions of work and administrative transactions.

The required HR skills focused on admin issues such as policy setting and administration, union negotiation and managing employee transactions.

Today, the business partner model requires HR professionals also to connect their work directly to the business. Some HR practitioners lack these skills. If they fail to acquire them, their ability to function as business partners is diminished. This strongly supports the business partner model.

Our research indicates that as HR professionals acquire the skills and knowledge necessary to be business partners, they add significant value to financial and customer business results.

Likewise our research shows that those that do not make the transition in knowledge and skills are less likely to have business impact. When HR professionals are business partners, business success follows.

By way of metaphor, if a person cannot work the remote for the new electronic gadget, we should not blame the gadget, but should teach the user how better to use the gadget.

8. Reasons for failure

The inevitable failures in the application of the business partner model may be due to several factors.

As indicated above, 20% of HR professionals will probably never be able to adapt to the full business partner role. Asking HR professionals who have focused on policies and transactions to do talent and organisation audits and make major changes may be too great a shift for some.

Some may not make the shift to business partners because of personal interests that deter them from engaging in the business partner role. Their interests and abilities may make them focus administrative detail rather than embrace the larger and more complicated perspective of the business as a whole.

Some HR practitioners may want to be business partners but simply do not how to proceed. Such individuals need to understand the frameworks, logic, knowledge, and skills that are necessary for them to grow into the business partner role.

Substantial empirical evidence shows that HR professionals who are provided with such information can quickly apply it in adding greater value to the business.

For example, defence and aerospace company BAE Systems undertook a serious commitment to enhance the competencies of its HR professionals. As a result of the developmental programme, HR's perceived impact on business performance increased dramatically (the percentage of line managers rating HR as four or five in business effectiveness increased by 120%.)

There may be some cases where an organisation's success does not depend on individual abilities or organisational capabilities. For example, a company may have a monopoly, and may be protected from competitive pressures. In such circumstances business performance may be dictated primarily by the maintenance of that monopoly. Internal dynamics will have relatively less to do with business success than the maintenance of the monopoly.

Therefore, HR professionals who push for alignment, integration and innovation in talent and organisation are less likely to contribute to business success. In addition, our recent empirical work together with our colleagues, Alejandro Sioli and Arthur Yeung, shows that HR is most closely associated with business performance under conditions of significant change and has substantially less influence under conditions of little change. So, HR's impact on business may vary depending on the business setting.

Some line managers have trouble either accepting the importance of talent and organisation and/or accepting HR professionals as significant contributors to these agendas. This may be due to their having a limited perspective on the changing nature of business or due to past bad experiences.

Research by a number of consulting firms shows that senior level executives are focusing more on issues such as strategy execution, leadership, talent, and change - all HR agendas. Therefore, managers often want and need what effective HR professionals can help them deliver.

9. What's the alternative?

There are really few other options. When someone said to us that the business partner model was not working , we asked: 'What would you suggest?' The following are the two responses we received.

First, 'Some HR professionals do not know the business well enough to be able to function as business partners'. Second, 'Some HR professionals are too enmeshed in transactional administrative work to be able to function as business partners'. Both of these problems have direct and obvious solutions.

The solution to the first response is that HR professionals need to learn the business inside out. They must know it well enough not only to do better HR work but also to be able to contribute to the strategic decision-making processes of the senior management team. The solution to the second is that much of the admin work will need to be outsourced or digitalised for electronic processing.

The reality is that HR professionals must evolve into being the best thinkers in the company about the human and organisation side of the business. The nature of business is dramatically changing.

Changes are occurring in virtually every element of the social, political, and economic environments that affect business. They include technology, globalisation, communications, regulations, competitiveness, demographics, shareholder demands and a tight labour market for key talent.

Under such conditions, the human side of the business emerges as a key source of competitive advantage. Therefore, specialists in the processes of human and organisation optimisation become central to business success. These specialists should reside in the HR department as business partners.

Read part two, The Challenges Ahead , published in our Year Ahead publication with the 2009 January issue.

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Further reading

Is the Ulrich model still valid?

Exclusive: The six competencies to inspire HR professionals for 2012

The Year Ahead 2009: View from the top - Evolutionary forces are at work

How does the business partner model work for learning and development professionals?

Dave Ulrich: Don't blow up HR, appreciate and evolve it

Dave Ulrich: The evolution of the profession

HR influence: The next 10 years

What we’ve learned about culture over the past 10 years

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Case Study: How HR became trusted business partners

When Merle Mendonca started at the Australian Financial Security Authority (AFSA) six years ago, she noted the talent function was seen more as a recruitment administration function than a professional advisory area of the organisation. There was a reliance on using recruitment agencies to find talent, and the churn seemed fairly high.

With her 15 years of experience working in HR across both the private and public sectors, she saw the opportunity to reinvent the organisation’s recruitment processes by positioning HR as professional talent partners.

While the business and corporate landscape AFSA operates in has changed significantly over time, the lessons learned in this process remain the same. Communication, engagement and unpacking relevant issues to tailor a response to current business needs are key and will always ensure HR partners effectively.

We sat down with Merle and her business client to learn more about this process.

Merle, what was the recruitment process like when you joined AFSA?

When I joined the organisation in 2016, the talent recruitment followed a reactive approach. This approach was – ‘A staff member has now left, let’s contact HR’.

The business was facing an above-average attrition rate, mostly in entry level positions. While the processes worked to fill vacant roles in the short term, it followed a one-size-fits-all approach and there was no partnership between the HR and the business teams.

What did you do to change this approach?

I decided to focus on the recruitment process for the Trustee Services division. This area looks after case management of complex bankruptcy and insolvency matters, so it’s quite technical. They were looking to recruit people with higher education in law or accounting, even for our entry-level positions.

However, I noticed that we weren’t questioning the underlying issue of staff turnover. Why were people leaving and why did we have such a high turnover?

We knew from the APS Census that only 40% of staff expressed satisfaction with recruitment processes at that time, with key issues being resourcing and mobility practices. This indicated some issues with recruitment practices, so we dug deeper. We did three key things:

• We commissioned a working group , with two executive sponsors. This was critical to establishing commitment to making this a success. The working group had representatives from the business and HR who interviewed staff and managers to understand the issues.
• We undertook extensive research into the existing job descriptions and capabilities required.
• We developed recruitment personas where we expanded the focus to widen the scope of suitable candidates by outlining personal attributes and experience that could compliment requirements in the roles.

We ran recruitment for roles across multiple sites and approached it as a campaign. We added value by working in true partnership with the business area. HR played a key role in shortlisting candidates by developing targeted questions during recruitment, using a comparative rating scale, and allocating a score across multiple variables such as targeted capabilities, motivation/job fit and technical competence. We partnered with the business through the entire process to build capability in resourcing and selection of talent.

What results did you see?

By keeping the recruitment process for the campaign in-house, upskilling the business area and undertaking the necessary research, we saw some tangible results. The results included a significant reduction in recruitment costs, a reduction in the ‘time to fill’ from 52 to 18 business days, enhanced manager capability, reduction in attrition rate and increased career mobility. With these results we got a commitment from senior levels to work more closely and proactively with HR, and a commitment from staff to make it a success.

The APS can’t afford to undervalue HR as business partners. It’s critical the HR business partner concept is alive and well nurtured because otherwise we’ll go back to HR as administrative support.

What do you think are the main considerations that really turned the perceptions of HR around?

Most importantly, you need to demonstrate commitment to really uncover the issues. The talent team dedicated a lot of time to understanding employees’ perspectives on different issues. It was an extremely lengthy process, getting multiple perspectives from all levels and finding a solution that would suit all stakeholders.

Previously, there was a strong reliance on recruitment agencies to fill positions quickly and the churn was quite high due to attracting the wrong candidates. By implementing the new process, we were able to reduce recruitment costs quite significantly and from a business perspective, there was more openness to work with HR after seeing the numbers. We made it clear we wanted to work with the business to address their resourcing issues and this demonstrated our value, which in turn helped build their confidence.

Once our final approach was developed, we rolled this process out across the division. SES travelled to all sites with HR to demonstrate their commitment in addressing the challenges staff faced on the ground. We were very fortunate to have a great team of business leaders who wanted to make this a success.

We decided to reach out to Merle’s business stakeholder, Dipen Mitra, Director AFSA, to get his side of the story.

When Merle joined AFSA she took a step back and looked at the bigger picture. Merle took the time to understand what was going on by conducting deep-dive sessions and created personas. This added immense value as it uncovered why we were facing these issues. For example, we were targeting the wrong candidates which impacted our staff turnover rate. She probed deeper and helped us realise recruitment is a two-way street.

The mindset across the division has significantly changed and when we’re now looking at filling positions, the first thing we look at is the skill sets we already have in the team. We don’t just pick up a generic job description. We tailor it to attract the right talent and enhance team capability. I then call HR to discuss what I think I need, and they will work with us to ensure we’re recruiting the right people, for the right jobs. It’s been a lasting legacy. With the capability that has been built, continuous recruitment process enhancements are underway.

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Home › HR Career Path › What Does an HR Business Partner Do? › What is the HR Business Partner Model?

What is the HR Business Partner Model?

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Looking for the HR business partner model? You’re at the right place then.

The human resources business partner model is when the HR department participates in planning in a strategic way to elevate the business growth and supports it in its present and future goals.

Rather than limiting itself by concentrating on HR duties such as payroll, employee relations, and benefits, HR departments seek to add business success to the company by overseeing training, recruiting, advancement, and placement of all employees. In addition, the HR business partner model can organize how HR functions are carried out.

To learn more via video, then watch below. Otherwise, skip ahead.

The HR business partner role carries the expertise and a comprehensive understanding of how the HR function works and how to make a line of business within the company prosperous.

Their job responsibilities include coaching business leaders about human resources issues such as developing supportive HR, business strategy planning, analyzing talent requirements, onboarding, and recruiting.

HR business partners exhibit solid business knowledge and specific experience within the employer’s business sector, using HR capabilities to support organizational business goals.

HR as a function is close to the top and the center of the organization’s structure. In this manner, HR can function to enhance organizational objectives and add value to the business. In addition, HR business partnering makes human resources a part of corporate strategy rather than a strict, reactive personnel function.

Why is the Human Resources Business Partner Model Important?

The HR business partner model structure is curated to elevate business growth on all levels over time. HR chooses and screens individuals best aligned for the roles involved in recruitment.

In the development and development process, HR locates which employees need detailed training and ensure that it is done correctly.

In knowing the company’s inner workings, the strategic nature of the HR partnership model is combined with a corporate game of employee and manager sequence to achieve the most effective business outcomes.

Our top-rated HRBP certification provides insightful information on the HR business partner model. Take a look here and make sure to enroll to upskill your knowledge with the advanced HRBP skills:

What is an HR Business Partner?

A human resources business partner is a senior HR member with a deep knowledge of the correlation of the HR department’s role with the company’s success.

Their role includes supporting, guiding and coaching other HR staff members, as well as strategies, recruiting, and onboarding.

An HR business partner differs from an HR manager. The HR manager is focused on looking over the running of the HR department, while the primary goal of an HR business partner is to ensure HR contributes to the broader success of the organization.

Why is it Important to have an HR Business Partner?

An HR business partner ensures that the HR is treated as an essential business division to develop the business and drive more profit. Processes like intelligent recruitment decisions, smooth internal communications, and effective onboarding all contribute to the broader success of the company. An HR business partner helps lend these things the prominence and attention they deserve.

For HR business partners to work in practice, HR must shake off its lack of self-esteem. However, when done in a strategic way, HR adds immense value to the organization . 

HR business partnership, defined by a more expansive definition, is the future role of HR. It walks away from the limited functions of training, recruitment, etc., and makes these functions work for the business.

Reasons for Considering Human Resources Business Partner Model

Here are a few reasons to consider the HR business partner model structure for your organization:

Companies’ primary reason for considering and implementing the HR business model is due to change and evolution.

Change is necessary to expand the business or make it more productive, efficient, competitive, and problem-solving. Therefore, change in the business paradigm is a continuous necessity.

The HR leaders recognize that the business model handles the required changes and improvements by investing in human capital and people.

The supporters of the model understand that the success and job satisfaction of the employees is one of the primary keys to business success. Where a well-run HR partner model is most suited to focus on the needs of both the company and the individuals.

2. Considerations

Businesses considering the human resource business partner model must understand the nature of different model aspects and train outsourced individuals or hire HR specialists.

Expecting a sole HR office to handle HR generalist duties on top of interviewing, training, recruiting, strategic planning, and reviews results in frustration and eventual program failure for all involved. Instead, the HR business partner model requires a conscious HR strategy to change and hire a force of technical HR talent to see it through.

An HR business partner plays a crucial role in acquiring top new talent and verifies business objectives. As a result, they place current employees in the proper position with the correct managers and team partners and have access to vital training opportunities that permit long-term advancement. In addition, by promoting employee satisfaction and individual success, an HR partner aids in publicizing business success.

What areas in which the human resource business partner model adds the most weight? The answer might differ from business to business, the best HR partners work with the upper management team to specify the organization’s short and extensive goals. Then, they develop techniques for achieving these goals and discuss the organizational structure to pinpoint problem areas.

Advantages of a Human Resources Business Partner Model

In a traditional model, the HR manager is accountable for hiring and recruiting employees, administering benefits and payroll, and handling employee relations.

Digital HR technology now takes care of many of those traditional tasks, often freeing up space for HR to take on new responsibilities. Many companies are now looking at the HR role as a business partner, which plays a vital role in driving growth and profitability.

The business partner model reduces and takes away pressure from management to sharpen employee job skills for efficiency and productivity. Also, they identify, develop, and groom the best employees for success.

HR personnel is also responsible for assessing and reviewing employee data. This allows HR personnel to figure out strengths, which they may develop further to place employees more smartly, and disadvantages, which they may correct with further job skill training or corrective action.

Limitations of a Human Resources Business Partner Model

Suppose the HR department already works in a dynamic way and faces employee relations problems. In that scenario, you will not have enough time and people to assign to partnering with the company for other functions.

The business partner model requires the involvement of HR in almost each and every aspect of the enterprise, including financial status, production statistics, and sales numbers.

Management buy-in may is also a difficulty, as the traditional role of HR is inflated to that of an overseer of the whole business in the business-partner model.

There are multiple shortcomings of a human resource business partner model. The most fundamental ones are mentioned here:

1. Capability Shortfalls

The implementation of the HRBP role often displays pressing shortfalls in vital areas, such as how good the HRBP’s understanding of the necessary drivers of organizational success is and how progressive the HRBP is.

2. Reactive, not Proactive

The HRBP exists to benefit the client, i.e., the internal customer, but, that means pausing for the client to approach them rather than taking a functional approach. This means not concentrating on real value due to unaligned requests.

There is a risk that the client’s demands are based on activity not in line with the strategic goals. Therefore the HRBP does work that is not even aligned with the strategic objectives.

3. Unnecessary Assumptions

There may arise a few assumptions about what parts need attention rather than the ones that need actual requirements.

For example, an HRBP may take the task in seclusion, so when it fails, that HRBP will look at the reasoning behind the loss of that individual project. Yet only about thirty percent of initiatives are ever executed. Therefore, the HRBP needs to look at the business signs rather than take an isolated view.

4. Unsuitable Solutions

There is a trend to give internal customers the best practices. However, this is not always what the customer requires or wants. So instead, HRBPs are responsible to serve the best current outcome.

HR business partnering is gaining popularity amongst organizations to organize their HR function. This is because it’s proving to add meaningful professional value. Human resource is the instigator of both change and balance through business partnering, balancing different stakeholders to the overall organizational ambitions. On the base, this means HR professionals hire the right talent and encourage it here without losing the picture of the more extensive goals and performance in the long term.

The mission of the HR business partner model is to add actual value to the company by adding HR into all areas of business operations and strategic planning. As experts on the human element of the business, HR is best qualified to figure out how every employee fits into the organization’s goals and put each employee in a position to deliver positive results.

Human resources business partners identify employee morale, support new perks, and benefits that provide a competitive edge and build a strong company culture from the latest employee to the oldest one.

Companies must focus on results instead of the process to measure an HR partner’s value. For example, instead of changing the performance review process, Human resource experts need to assess and measure the impact of those changes. There are several trackable HR metrics that companies can use to gauge results.

For the HR business partner model to become a success, an HR professional must develop proficiency with all angles of the business. This will need digitalization or outsourcing primary administrative duties to free specialists up to focus on more significant outcomes.

If you are new to human resources and are looking to break into an HR Business Partner role, we recommend taking our HR Business Partner Certification Course , where you will learn how to build your skillset in the human resources business partner realm, build your HRBP network, craft a great HRBP resume, and create a successful HRBP job search strategy.

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Jon Lester was working in the future. And he didn’t want to come back to the present. 

Why not? Because Jon was in a future where the skills of his colleagues in IBM’s HR department were being used effectively, such as on workforce planning, and not wasted on busywork, such as gathering data from multiple systems. It’s a future where once-onerous data gathering tasks are done automatically, helping save time and energy for HR staff to focus on delivering equitable processes and reviews in support of personnel and promotion decisions.

We could all benefit from this future. So how did Jon get there? 

Faster deployments

In a pilot for IBM Consulting in North America, IBM saved 12,000 hours in one quarter

Faster execution

In the same pilot, completed work that normally took 10 weeks in 5 weeks

Jon was Director of HR Service Delivery & Transformation at IBM, managing HR operations teams in six delivery centers around the world. The role meant that he regularly received new IBM innovations in the AI and automation space—before they became available to external clients—to test their limits in real-world business scenarios.

One day in 2021, Jon and his team received a new technology developed by the IBM Watson® Research Lab—a trial version of software now known as the IBM watsonx Orchestrate solution. 

They thought it was a new iteration of familiar digital assistant and conversational AI technology, until they began working with it. Soon they were creating a digital worker to assist real IBM HR employees, automating 12,000 hours of previously manual data-gathering and data-entry tasks in one quarter (see detail later in this article). They understood that the capabilities of this new software were about to transform daily work not just for IBM’s HR department, but potentially for businesses everywhere.

Following the success of this first digital worker project, Jon was offered a new role within IBM HR. He was looking forward to extending the new capabilities to a new area. As Jon puts it: “I told them I want to take the future of work with me.” 

IBM HR Business Partners are HR employees who help IBM business units develop and retain talent. One IBM HR Business Partner and their teammates faced a large workload related to IBM HR’s quarterly promotions process, the purpose of which is to distribute promotions in a fair and timely manner and to help form promotion plans for employees not selected in the current quarter. The process’s success is critical to developing and retaining top talent within IBM. 

But the process was extremely time and labor intensive. It stretched up to 10 weeks out of every 12-week quarter, putting serious time pressure on the HR Business Partners’ other job responsibilities, such as strategic workforce planning, including organizational and skills transformation with a focus on inclusion.

“It was heavily reliant on collecting static data from various systems,” the IBM HR Business Partner explains. This IBM HR Business Partner covered the North America region for IBM Consulting™. But this still involved pulling data on 15,000–17,000 employees, from several systems, into spreadsheets with about 75 columns of data. She’d share that data with the appropriate IBM Talent, HR and business managers and leaders—hundreds in all. “This manual work was a huge obstacle of time and effort standing in the way of our  real work:  helping the business units evaluate the data and identify who was ready for promotion, who was getting close to being ready and who was not, in addition to helping them identify what’s needed to get those that are not ready, ready for a future cycle,” says the IBM HR Business Partner.

Thus, pulling and displaying the data necessary for the promotions process was the first task for which Jon and his team decided to try IBM watsonx Orchestrate. A collaboration between the HR Service Delivery & Transformation team, IBM Watson Research, the IBM IT department and the IBM HR Business Partner and their HR colleagues led to the creation and implementation of IBM’s first digital HR worker. 

The digital worker is called HiRo, and it is dramatically transforming day-to-day work during the promotions process. “HiRo is a rules-based system,“ explains Jon. “It performs many of the repetitive, manual activities that the IBM HR Business Partner or their teammates used to have to do  alongside  their higher value, more strategic work.”

HiRo now handles the information compiling and formatting tasks that used to take so much of the IBM HR Business Partner’s time. The spreadsheets are gone. The employee managers and leaders now receive an updated view of their employees’ data that displays whether the employees have met objective promotion criteria and what steps need to be taken—by the employees and the managers—for fulfilling baseline requirements.

A concern with automation, of course, is that eliminating human work may eliminate human jobs. The use of HiRo shows how automation can  elevate  human jobs. By pulling and displaying data, HiRo gives the IBM HR Business Partner and the employee managers more time to consider which of the employees who meet the baseline, objective criteria should be nominated for promotion. It also affords more time for coaching other employees to help them meet the criteria, if not in the current cycle then in the next. As the IBM HR Business Partner puts it, “The time the HR Business Partners and the managers are saving frees us up to do all the other things that we have to do anyway, and we don't have to work long hours to keep up.”

And although HiRo does not include machine learning capabilities, it does adhere to the ethics underlying IBM’s AI technology by ensuring data privacy and security for personal information (PI), and transparency around where the data is stored and pulled from. The balance of duties between HiRo, the IBM HR Business Partner and the other stakeholders ensures that the actual workforce decisions are made  by people . “Any decision that involves a pay raise or a nomination is made by the manager, the HR Business Partner and the practice lead,” Jon explains. Further, the cross-functional team completed an assessment to ensure that HiRo aligns with these five principles of tech ethics: 

• Explainability:  earning and maintaining trust by making clear that promotion decisions are made by humans and HiRo makes no decisions or recommendations
• Fairness:  applying rules consistently and displaying the same data for each employee
• Robustness:  guarding against adversarial threats and potential incursions to keep systems healthy
• Transparency:  sharing information with stakeholders of varying roles to reinforce trust 
• Privacy:  safeguarding data through the entire lifecycle, from training to production and governance

Before the HiRo project, the first question Jon had about IBM watsonx Orchestrate was what makes it different than a chatbot or an RPA robot. One of his team’s recent successes with new technology was creating IBM’s AskHR conversational AI, which automates more than 80 common HR processes. AskHR has strong adoption rates, and it saves the HR department, IBM employees and managers significant amounts of time spent completing or supporting HR processes. 

“Conversational AI and RPA are also useful and valuable for automating manual, objective tasks,” says Jon. But there are things they can’t do that IBM watsonx Orchestrate can. “AskHR does its tasks really well, but it can only do them one at a time. It can’t link transactions across multiple processes or systems. And a chatbot lacks long-term memory. The moment you switch it off, it forgets that you exist. It has no memory of what you did before.” 

When the team began working with IBM watsonx Orchestrate, they quickly noticed the capabilities that set it apart. Jon explains: “It can engage with multiple people, of different roles, at the same time. It remembers what you told it yesterday and can apply that information to actions today, where applicable. Once the rules are set by humans, HiRo will uniformly apply them. And it lets you build its skills: you can train it do certain tasks within one process, but you can easily have it apply those same skills to other processes. So you can build use case after use case. It blows chatbots out of the water. It really is changing our understanding of the future of work.” 

IBM HR first piloted HiRo in the second quarter of 2022, for IBM Consulting in North America. In previous quarters, for each employee manager, it took about eight hours to gather all of the necessary data and fill in the relevant nomination forms. Approximately 1,800 managers used HiRo during the Q2 2022 pilot, and they completed the data-gathering and data-entry work in about 1 hour each, collectively saving about 12,000 hours in that quarter’s promotions process.

The time savings, of course, greatly accelerated the promotions process for the quarter. “We did the work of ten weeks in five weeks,” says the IBM HR Business Partner.

Based on this success, HiRo has some growth opportunities of its own. It’s about to be rolled out to other IBM Consulting regions worldwide. “We anticipate that the other regions where we roll this out will achieve similar results. The potential savings over four quarters could be 50,000 hours per year,” says Jon.

Beyond saving time, HiRo and other digital workers’ highest value may be their potential to transform jobs. We are in the midst of a global labor and talent shortage. People are expected to do more with less all the time. This technology can help. “It’s not just that the work of four people can be done by one, it’s also that that one person's role is totally changed,” says Jon. “They can spend a much greater portion of their time on the most strategic work—like workforce planning and equity, and they can use IBM watsonx Orchestrate to supply the data they need to do that important work.”

So what’s next? While HiRo itself will be rolled out to more regions in late 2022, it is about to gain several digital colleagues. The HR department is already using learnings from the promotions cycle to develop new digital workers for other processes. The new prototypes include an Onboarding Assistant and Learning Event Manager, and more processes are in the pipeline for evaluation. 

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The Evolution of the HR Business Partner by Dave Ulrich

• In HR , Leadership

In 1997, Netscape was the browser of choice; Motorola StarTAC dominated cell phone popularity; the Apple PowerBook led in innovative laptops; cordless home phones emerged; Sony PlayStation with a 128k memory card was state of the art; Windows 95 was released. And I published the book Human Resource Champions, the ideas therein helped to define the HR business partner in terms of roles and outcomes within an organisation.

Changes over time

In the ensuing 20 years, much has changed in the world of technology; and much has changed in the world of HR. The business partner concept has dramatically evolved (transformed, been disrupted, evolved, or whatever word you choose) from roles and outcomes to a logic of how HR delivers value to employees, organisations, customers, investors, and communities through individual talent (competence, workforce, people), leadership throughout an organisation, and organisation capabilities (culture, workplace, systems).

In these 20 years, my colleagues and I have published over 25 books and hundreds of articles, chapters, research monographs, and blogs, and have given hundreds of talks on how HR is not about HR but about delivering value to multiple stakeholders.

Often critics of HR compare the 1997 HR business partner 1.0 model with the 2018 business requirements, assuming that HR logic and ideas have not evolved. This would be like saying the StarTAC phone should perform the functions of today’s smartphones. So it is useful to capture the concepts defining business partner 2.0. It is difficult, if not impossible, to summarise all the business partner 2.0 ideas, but the following table highlights thirteen pivots (because they build on the past, but they could be called disruptions or evolutions as well) each of which has been the focus of our (and many others’) thinking, research, writing, and practice.

Evolution in HR

We are incredibly grateful for HR professionals and thought leaders whose work we so readily assimilate, learn from, and build upon. The ongoing evolution of HR to a true value-creation stage comes from so many innovators. We appreciate their work and are grateful to be part of the HR value-creation movement.

HR’s evolution will continue as current business issues place HR centre stage (e.g., digital information age, #MeToo movement) and HR needs to continually upgrade to respond; but it is useful to move at this time from business partner 1.0 to business partner 2.0. I should note that each of these thirteen dimensions is the topic of a book, article, webinar, or other public data that is readily accessible on our website ( www.rbl.net ) or on LinkedIn.

As these pivots continue, it’s a great time to be in HR!

Author: Dave Ulrich

Source:  https://www.hrdconnect.com/2018/08/21/dave-ulrich-hr-business-partner-2-0/

HR STRATEGIC POSITIONING EVENTS

Ensure HR contributes to the bottom line… Too often Human Resources is an afterthought in the strategic planning process. Many of our HR delegates come with problems such as how to help the business achieve its growth targets, how to integrate cultures, ensuring alignment, to achieve strategic business goals, how to excel at talent management and how to effectively engage their people. We regularly run these events, check out the event page here

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• September 26, 2022

Best HR Case Studies

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HR as a function has undeniable importance from a business management perspective. With the advancement in technology, 2022 saw a huge technological shift in this aspect of business management as well. Apart from digitizing all other business aspects, organizations have begun to incorporate technology and data into HR practices as well.

HR Analytics Case Studies with Business Impact and its benefits are listed below:

An american mnc reduces attrition using people analytics and forecasting.

Case: This American MNC is a client of PeopleStrong and is suffering from a high turnover of employees at five locations. The company intended to install analytics in order to evaluate the main drivers of attrition and do forecasting for their occurrence at different business locations.

Solution: An integrated tool for workforce analytics was created and implemented. This tool could capture attrition results and their drivers and do a forecasting based on trends.

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Result: The forecasting report predicted that 500 of the 5000 employees were going to quit in the next 6 months. Better employee retention policies were designed which included rewards and incentives apart from better people strategies. Even though 250 people still left, the figure was 50% lower than the prediction.

Under Armour digitized employee recruitment and enhanced employee experience

Case: Under Armour, an American organization dealing with the manufacture of sports and casual apparel and footwear, is a global company. With more than 130 global outlets and 8500 employees, their ATS system received more than 30,000 resumes in a month. Thus, hiring was a cumbersome process for them as well as candidates applying for a job.

Solution: They engaged in a digital recruitment system called Hirevue. With Hirevue, managers could create interviews with candidates with the help of pre-recorded questions. This screening process helped managers call in only employees who met their requirements for webcam or mobile recorded interviews.

Result: Managers could now hire new employees much more quickly. There was a 35% reduction in time in the overall interview to the hiring process. Talent quality also improved.

These above case studies show the emerging trend of incorporating analytics in the HR function of business management . This can also be seen to have positive results in the recruitment and retention processes. 

Human resource management is quite a recent term. Employees are treated with a lot of respect and regard nowadays compared to earlier. There were times when workers were considered to be expendable and they had few rights. Working conditions were miserable and people had no say in how organizations are operated or in the way they were treated. The industrial revolution is what brought changes. Companies started realizing that keeping employees loyal was essential for running businesses smoothly.  

Caring For Employees During The Industrial Revolution

Courses for human resources certification online teach that before the industrial revolution there were hardly any large industries and a need for managing workers was not felt. Working conditions were dangerous for them and pay was hardly commensurate with what work they did. In the late 1900s, companies like the UK-based Cadbury and Jacob from Ireland appointed welfare officers. These firms introduced a system of payment during sick leaves and cheap housing for employees.

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It was F W Taylor during the early twentieth century who introduced a system for managing staff. He believed that people could be trained to become experts in certain jobs. The famous carmaker Ford adopted his methods. Tools in manpower management like job analysis, employee selection procedures, and training methods were introduced during this period. Certain fast food organizations also adopted Taylor’s theories. His mistake was that he did not think people can get bored with doing the same job.

Employee Management During The World Wars

Two events that changed many things for us are the first and second world wars. Employee unions had been formed during the first world war. As men went to fight wars, women came to be seen more in workplaces. In your HR training certification by IIM Raipur , you will learn how companies had to think about managing workers and form new rules. Recruitment, dismissal, bonus, and absence from work came under the scope of manpower management.

Researchers like Elton May opined that factors like motivation, job satisfaction, leadership skills, and group dynamics could influence performance. The improvement in the economy after the war saw many firms adopting a more flexible approach to staff members. Big companies used employee benefits to lure and retain people. Personnel and welfare work was in full swing during the second world war, but it was done in a bureaucratic style as government-run firms influenced law-making.

The Post-War Scenario

The 60s were not good times for industrial relations as it was found that none of the entities involved in negotiation had skills to discuss issues of employees. As the decade came to an end, employment opportunities improved, and along with this, people management techniques began to be used. When you study human resources certification online courses you will know that terms like motivation, organizational behavior, and management training were heard more commonly.

Also Read:  Executive Development Program In Talent Management

In the seventies, much was talked about rewarding employees. The next two decades saw economies sliding and companies becoming less profitable. But it was also then that many organizations realized the importance of retaining people. They began looking at workers as an asset that must be taken care of if the firm wants to have an edge over competitors. Humans started to be regarded as resources that need to be effectively managed. Human Resource Management was born.

The Nineties To Now

It is no more only personnel management and administrative tasks for workforce heads. The HR training certification by IIM Raipur will tell you that it is more about employee engagement and development that people managers are tasked with now. Human resource departments are strengthening the culture in an organization and finding people who can fit that environment. They are also tasked with ensuring that every employee gets an opportunity to use his or her talents for the benefit of their companies.

Also Read:  Why is it Important to Study Human Resource Management?

HR managers are more focused on workers than on processes. This department is also gaining more importance as management’s realize a need to attract and retain the best talents available in the market. HR leaders find themselves among the C-suite as their role in getting the best out of employees is increasing. They must understand the needs of a more diverse, multicultural, and multigenerational workforce and ensure to fulfill them. Retention of good hands has assumed much importance nowadays.

The Future Of HR Management

  The human resources certification online courses will teach that it is not just enough to employ and retain people, but they must also be trained and developed. The speed at which new technologies emerge, there is a need to keep employees abreast of modern developments. HR managers must continuously update themselves with modern technology and arrange training programs to empower workers with new skills. The journey of staff members in an enterprise will be that of continuous learning.

Acquiring best talents and retaining them will remain the focus of any progressive organization. People managers will have to find innovative means to attract those who are equipped with the latest skills required for a job. Engaging with prospective employees through social media platforms will be practiced by more HR heads. There will be increased use of automation for screening resumes and conducting initial interviews. This will speed up the process and reduce costs.

HR departments will be trying innovative methods to improve employee experience in the company. They will find out the requirements of the new breed of recruits. Learning opportunities will be improved. Promotions and salary hikes will no longer be based on experience or seniority. New procedures for evaluating employees will be used. Getting HR training certification by IIM Raipur will teach new methods that are used by global enterprises for appraisal and rewarding.

Looking at the evolution of human resource management can show you that there has been a shift from looking at employees as only a means to achieve company objectives, treating them as individuals, and satisfying their needs. There is a realization that it is equally important to ensure that their goals are achieved and these objectives are in line with that of the organization. HR departments will play a more important role as retaining good talent becomes crucial. Combining the human force with machines and using that synergy will be highly important in the future.

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