2016 HR Competency Model

1 2015 Dave Ulrich, the RBL Group All Rights ReservedHUMAN RESOURCE Competency CONFERENCE 2016 Mike Ulrich, Co-DirectorDavid Kryscynski, Co-DirectorDave Ulrich, PrincipalWayne Brockbank, PrincipalJacqueline Slade, Project Manager2016 HR Competency Model 2015 RBL Group All Rights ReservedOverall Goals2 IdeasAbout new business realities and how HR professionals add valueTalkEngage in new conversations and access new information ToolsCreate tools (processes and systems) to create valueTime Spend time on things that make a differenceHRImpactHow can HR improve the work that gets done in organizations?FutureWhat s next?Value addedWho uses?Taxonomy Simplify and applywith 2015 RBL Group All Rights ReservedGreat Time to Be in HR3 HR is not about HR Think outside in Connect HR to investors and customers Look beyond strategyPerspective Talent: competence x commitment x contribution Leadership: why, what, how Culture: behavior, pattern, identityOutcomes HR governance/department HR practices HR analytics HR competencies**Transformation 2015 RBL Group All Rights ReservedSpecial Thanks to Sponsors Michigan and RBL4 2015 RBL Group All Rights ReservedHR Competencies 2016 Thanks to Twenty-Two Regional Partners5 2015 RBL Group All Rights ReservedEvolution of HR Competency Study (1987 to 2016)6 What are the competencies of HR professionals?

2 How well do HR professionals exhibit the identified competencies?What competencies influence perceptions of individual effectiveness and business results?What personal competencies have greatest impact on business performance and value created for stakeholders?What HR department activitiesbest predict business performance and value created for stakeholders? 2015 RBL Group All Rights ReservedThe Most Comprehensive Assessment of HR CompetenceHistory: Conducted jointly by RBL/University of Michigan and regional partners Data collection seven times since 1987 The most comprehensive and rigorous empirical review of HR competencies and outcomesComposition: global participation Small, medium, and large firms Good mix of industries 360 methodology Factor analytic approach to Competency identification19872016 Participants (thousands)90kTotal participants7 2015 RBL Group All Rights ReservedHRCS Research Evolution81987199219972002 BusinessKnow ledgeChangeHRDeliveryB u s i n e s sK n o w l e d g eP e r s o n a lC r e d i b i l i t yHRD e l i v e r yC h a n g eB u s i n e s sK n o w l e d g eS t r a t e g i cC o n t r i b u t i o nHRD e l i v e r yP e r s o n a lC r e d i b i l i t yHRT e c h n o l o g yB u s i n e s sK n o w l e d g eC u l t u r eHRD e l i v e r yP e r s o n a lC r e d i b i l i t yChange 2015 RBL Group All Rights Reserved2007 and 2012 HR Competencies9 2015 RBL Group All Rights Reserved2016 HR CompetenciesOverview of Survey Design10 Questions(Competencies)Overall:123 Items (Be, Know, Do)Total Respondents(30,227)Respondents(360)Self Report: HR Participants(3,877)Other Report.

3 HR Associates (12,393)Other Report: Non-HR Associates(10,402)Other Report: Supervisor(3,513) 2015 RBL Group All Rights ReservedOverview of the Seven Rounds of Research111987199219972002200720122016 Total Respondents10,2914,5563,2297,08210,06320 ,02330,227 Business Units1,2004416786924136351,509 Associate Raters8,8843,8052,5655,8908,41417,35326, 224HR Participants1,4077516641,1921,6712,6383, 877 BusinessBusiness KnowledgeBusiness KnowledgeBusiness KnowledgeBusiness KnowledgeBusiness AllyStrategic Positioner????Strategic ContributionStrategic ArchitectHuman ResourcesHR DeliveryHR DeliveryHR DeliveryHR DeliveryTalent Manager & Organization DesignerHR Innovator & IntegratorHR TechnologyOperational ExecutorTechnology ProponentChangeChangeChangeChangeCombine d Into Strategic ContributionCulture And Change StewardChange ChampionCulture CultureCapability BuilderPersonal Personal CredibilityPersonal CredibilityPersonal CredibilityCredible ActivistCredible Activist 2015 RBL Group All Rights ReservedHR Competencies, 1987 to 2016:Participant Characteristics (State of the Profession)12198719921997200220072012201 6HR Participant GenderMale77%78%70%57%46%38%35%Female232 23043546265 Years in HR for HR Participant 5 Years or Less10%14%13%25%24%25%16%6 9 Years1419151820181510 14 Years2624212223252215 or More Years50435135323247 Primary Role of HR ParticipantBenefits/Medical/Safety6%5%5% 4%3%3%2%Compensation5446676HR Planning/ Strategy/AA6858141414 Labor Relations6856543 Org.

4 Development/Effectiveness25313795 Recruiting36446118 Training/Communication7146129119 Generalist61456048494053 2015 RBL Group All Rights Reserved2016 Respondents by Region13 RegionRespondents per Region% of Total RespondentsNorth America (US & Canada)9, America2, & New Zealand1, , , , , , in Asia2, 2015 RBL Group All Rights ReservedTakeaways by Level of ResponsibilityHR ProfessionalHow can I improve?Business leadersWhat can I expect?HRDepartmentHow can we improve?14 2015 RBL Group All Rights ReservedHow Does HR Create Value for the Business?15 Demographics of HR professionalOverall Competency level in the HR departmentActivities of the HR departmentIndividual HR Professional LevelHR Department LevelPerceived performance of HR professional: Overall effectiveness Value created for the organization s stakeholders by the HR professionalPerceived performance of HR department: Value created for the organization s stakeholders by the HR departmentPerceived competencies of HR professionals 2015 RBL Group All Rights ReservedEmpirically Deriving the 2016 Model16 LevelNumberDescriptionTotal StudyRespondents30,227 Total number of people who completedone or more surveys in the 2016 study.

5 These are HR participants and raters of the HR participantsHR Participant3,877 Total number of HR participants who completedself-evaluations and were rated by othersData is aggregated to HR Participant levelfor factor analysis to develop Competency modelOrganizationalUnit1,509 Total number of distinct organizational units thathave HR participants represented in the data 2015 RBL Group All Rights ReservedHigh-Level Logic of PresentationLevels of Analytic Complexity MeansAverage score to understand trends Means broken down by different groupingsAverage by different groups (role, geography, etc.) to show differences Correlations between variablesTo show relationships between variables RegressionsTo explain outcomes (individual performance or business results)17 2015 RBL Group All Rights ReservedMeasures to Explain Performance Perceived HR Competencies of HR ParticipantsRatings from 360 feedback from supervisors, subordinates, HR associates and non-HR associates Demographics of HR ParticipantsMeasures that indicate various characteristics of the HR participant such as years of experience, educational background, etc.

6 Overall Competency Level in the HR Department Average HR competencies of the HR professionals in the department Activities of HR DepartmentsThe practices and activities HR departments utilize in their efforts to align internal HR with the strategy of the business Other VariablesThe strategy of the business, the culture of the organization, and so 2015 RBL Group All Rights ReservedThe Perceived Competencies of HR Professionals19 Demographics of HR professionalOverall Competency level in the HR departmentActivities of the HR DepartmentIndividual HR Professional LevelHR Department LevelPerceived performance of HR professional: Overall effectiveness Value created for the organization s stakeholders by the HR professionalPerceived performance of HR department: Value created for the organization s stakeholders by the HR departmentPerceived competencies of HR professionals 2015 RBL Group All Rights Reserved2016 HR Competency Model20 2015 RBL Group All Rights ReservedStrategic Positioner Breakdown21 Sub-domainsSample QuestionsInterprets Business ContextUnderstands changes in $ORGUNIT$'s external environment ( , technological, economic, political, demographic, etc.)

7 Understands who makes key decisions in your organization ( , people who control important resources)Understands expectations of external customersUnderstands how $ORGUNIT$ makes money ( , who, where, how)DecodesStakeholder ExpectationsUnderstands investor expectationsAligns organizational brand with customers, shareholders, and employeesKnows how investors value $ORGUNIT$Helps investors recognize the quality of leadership within $ORGUNIT$Understands InternalBusiness OperationsAccurately anticipates $ORGUNIT$'s risksContributes to creating $ORGUNIT$'s strategy ( , help shape the vision of the future of the organization)Identifies problems that are central to $ORGUNIT$'s strategyThe strategic positioner domain captures the extent to which the HR professional can evaluate both the external and internal business contexts and translate those evaluations into practical insights that help position the organization to be successful 2015 RBL Group All Rights ReservedCredible Activist Breakdown22 Sub-domainsSample QuestionsInfluencesand Relates to OthersShows a genuine interest in othersActs with appropriate balance of confidence and humilitySeeks to learn from both successes and failuresDemonstrates personal integrity and ethicsEarns Trust Through ResultsHas earned trust with key internal stakeholdersFrames complex ideas in simple and useful waysPersists through adverse circumstancesHas history of delivering resultsThe credible activist domain carries over from prior studies and captures the extent to which HR professionals achieve the trust and respect they need within the organization to be viewed

8 As valued and valuable partners 2015 RBL Group All Rights ReservedParadox Navigator Breakdown23 Sample QuestionsEffectively manages the tensions between high-level strategic issues and operational detailsEffectively manages the tensions between internal focus on employees and external focus on customers and investorsEffectively manages the tension between taking time to gather information and making timely decisionsEffectively manages the tensions between global and local business demandsEffectively manages the tensions between the need for change (flexibility, adaptability) and stability (standardization)HR professionals are increasingly asked to maximize ideas and outcomes that may be inherently in opposition with each other. These professionals must constantly manage the paradoxes or tensions that exist in work settings 2015 RBL Group All Rights ReservedCulture and Change Champion Breakdown24 Sub-domainsSample QuestionsDesigns CultureCrafts the right organizational culture to deliver organizational resultsMeasures the influence of organizational culture on achieving sustained organizational performanceMakes managing organizational culture a priority for $ORGUNIT$ManagesChangeInnovates HR systems based on changing business demandsHelps set the direction of change with clear outcomesIdentifies the key steps for initiating changeHelps people understand why change is important ( , creates a sense of urgency)HR professionals need to manage both change and culture.

9 By championing both change and culture, HR professionals help make things consistently happen. 2015 RBL Group All Rights ReservedHuman Capital Curator Breakdown25 Sub-domainsSample QuestionsDevelopsTalentDevelops talent based on $ORGUNIT$'s needsFacilitates meaningful developmental work experiencesAssesses key talentIdentifies and prioritizes key positionsDevelops LeadersAssesses leaders against established leadership metricsBuilds a business case for investing in leadersManages succession plans for key leadership positionsDrives PerformanceEstablishes clear performance standardsDesigns measurement systems that distinguish high-performing individuals from low-performing individualsFacilitates the design of organizational structure ( , roles, responsibilities)Develops TechnicalTalentBuilds opportunities for promotion for technical expertsProvides developmental programs for technical expertsDifferentiates leadership potential from technical expertiseHR professionals offer integrated and innovative HR solutions for managing people within their organization.

10 These HR practice areas ensure human capital. 2015 RBL Group All Rights ReservedTotal Rewards Steward26 Sub-domainsSample QuestionsDesigns MeaningfulWorkHelps employees improve physical healthEffectively balances employee well-being and business performanceManages Compensation and BenefitsDesigns non-monetary reward/recognition systemsBalances monetary and non-monetary rewards for employeesDesigns appropriate benefits systemsHR professionals must be able to create total reward systems which include compensation and benefits (financial rewards) as well as meaning from work (non financial rewards) 2015 RBL Group All Rights ReservedTechnology and Media Integrator27 Sub-domainsSample QuestionsLeverages Social Media ToolsCoordinates policies for how people use social media at workLeverages social media for business purposesUses social media to enhance collaboration at workIntegrates technologyUses technology to facilitate remote and mobile workforceApplies technology to HR practices ( , HRIS)