HR Business Partner Research

1 HR Business Partner Research Executive Summary 2013. november 1 Acknowledgement Thanks to the HR professionals who supported us in Research preparation with their inspiring suggestions: M ria Janka, Eszter K ri, B la Marina, Gergely Pal di-Kov cs, Ildik R czn Sz ke , Judit S f r, Lilla S fr ny, Korn lia Vass Thanks to the following companies for supporting our Research financially or with providing workshop venues: Borsodi S rgy r, Budapest Bank, ELM , GSK Bio, ING Bank, KPMG, MOL, Magyar Telekom, MKB, Richter, Sanofi, T-Systems Thanks to T mea Ficsor, P ter Galambos, Judit Gy ri, Zsuzsanna Lehel, Lili Lenkei, Szabina Mezei, Klaudia Suhajda for their enthusiastic and intensive support during Research interviews and workshops. Thanks to Anik Balogh and Alina L ng for their indispensable and careful contribution in preparing the Research summary. Thanks to the participating companies and individuals on the HR teams for their openness and time! Our Research was supported by several contributors and supporters.

2 We would like to express our gratitude for their contribution here as well! Structure of the Research summary Aim, methodology Conceptual clarification Research framework Linguistic mess about the HR BP role About the Ulrich HR organizational model Concept of desired HR BP role Dilemmas related to the implementation of the HR BP role Different ways of implementing the HR BP role About the HR BP role Administrative support One point of contact / two (multiple) points of contact Leadership development Implementation project HR BP metrics, evaluation Success criteria for HR organizational model HR BPs Business and strategic contribution HR BP and manager cooperation HR BP competencies Career and development Stress related to HR BP role Successful HR BP operation Summary, learning points References, professional literature Benchmark data Summary Research FRAMEWORK 4 Research Team Attila Bokor Research teamleader, OD Partner Kft. Zsuzsanna Csenterics researcher, Strategic HR Mentor Kft.

3 Edina Echter researcher, OD Partner Kft. Anik Killeen-K r s researcher, Simonyi s T th Kft. Orsolya Vir g researcher, OD Partner Kft. Characteristics of the team: HR experience in national and regional companies Research experience Consultant experience Personal interest, motivation Research objective: explore the diversity of HR BP role interpretations and search for a shared understanding Questions we have searched the answers to: Is (and if yes how) the HRBP role more productive and effective than previous models? What are the similarities and differences in interpreting and adapting the HR BP function/role among the participating companies? What kind of development paths are there for evolving the HR BP role? Where do we start from, and in which direction are we moving? Is there any other, better way of increasing HR added value than following the Ulrich model? Are there competing approaches in Hungary? Do we have real choices? Can the model s pitfalls be avoided?

4 What are the most important experiences and key learning points of HR organization transformation projects? How is it possible to accomplish successful cooperation between the whole HR organization - Center of Excellence, Shared Service Center etc. and HR BP role? Where do HR BPs come from and what kind of development is needed in order to become successful in the role? How can HR BPs and Business managers cooperate efficiently? How managers have to change with the introduction of the HRBP role? How they can be supported in this change? Structure and methodology About the methods HR director interviews: 1,5-2 hours, structured deep interviews Questionnaire: 21 questions for different HR role holders Benchmark workshops: interactive workshops, 2 - in - 1 function, along focus topics, calling forth personal experiences besides professional ones. Structural elements are built on each other, we had already used data from HR director interviews in constructing the workshops.

5 Document collection: asking for related company documentation Analysis and preparing Research results paper: sequence of individual analytical work and Research team s workshops, continuously including external feedback into the completed materials. Methodology Participants March April May June July Aug Sept Research kick-off methodological frames Methodology-development HR director interviews 44 companies Online-questionnaire 152 individuals Benchmark workshop 8 ws / 31 companies Document collection Analysis Research participants: 44 companies BAT Borsodi S rgy r CIB Bank Citibank Coca-Cola Danone Deloitte DHL Douwe Egberts Egis Electrolux ELM Hung ria Ernst & Young Erste Bank Richter Sanofi-Aventis Sanoma Siemens Sykes Syngenta Telenor Tetra Pak T-Systems Unicredit Bank UPC Visteon Vodafone Xerox GE Capital, Budapest Bank GE Lighting GSK Bio ING Bank Invitel K&H Bank KPMG Magyar Telekom Metro MKB MOL Morgan Stanley Nokia Siemens Network Philip Morris Raiffeisen Bank ABOUT THE HR BP ROLE 9 Linguistic mess about the HR BP role Assumption: We can finish each other s sentences Consequences.

6 Difficulties in the Research for example many times Generalists were called and considered Business Partners Difficulties in benchmarking and clear-cut comparisons Reasons: Several reasons may exist for the above: Perception Interest, intention Context, organizational structure Habits, traditions What to do with that? defined the concepts in our Research paper as we have used them. it seems more time at first glance, it is worth to ask beyond when benchmarking. Experience: There are different names for the same content and things / roles under the same name might be totally different. The above was a common phenomenon in many aspects of the Research . Let s start at the source: the Ulrich model The Ulrich organizational model s objective is to strengthen HR s value-add and Business integration. Standardizing transactional HR activities, leveraging IT solutions and economies of scale for efficiency. Developing and strengthening Business Partner role related to transformational HR activities.

7 Involving managers and employees in HR activities. The model is popular, most of the large multinational companies have already implemented / are planning to implement it. The model builds on 3 HR legs : HR Business Partner , Center of Expertise and Shared Service Centers. The 4th leg is managers. The model s most popular element is the HR Business Partner role. Besides popularity and results, the model has been criticized many times. The most important advantages are: cost-efficiency, ease of sharing best practices, development of leadership culture. The greatest risks are the following: fragmentation of HR operation, widening distance from the managers, intensification of inner HR co-operational problems and shortfalls against expected outcomes. However, these difficulties are typically the results of prolonged implementation projects with unrealistic resource plans and many compromises. What are the characteristics of the desired HR BP role? Based on the relevant literature, an HR Business Partner is mainly the top management s counterpart.

8 Fills a kind of internal consultant, challenger role who has relevant part in implementing an outside in approach. works toward strengthening the organization s human capital instead of supporting managers. is mainly involved in activities around organizational design and development, talent portfolio development, leadership development and change management. The desired HR Business Partner role as described by HR Directors in our Research : fits with the picture described by the literature, and compared with the classical HR Generalist role has more strategic focus, Business approach, internal consultant role and knowledge. It also requires knowledge and skills that go beyond the traditional professional competency set. Significant differences exist between the desired and the real HR BP role Desires, expectations and real practice go their separate ways According to HR directors expectations, operational manager support is the most important and HR BPs have to do administration work as well.

9 HR BP s actual working hours are full with operational and administrative activities (employee support as well!) therefore they have minimal time for strategic Business consultancy. HR employees perceive that managers expectation is more operational leadership support than Business /strategic consultation. Further dilemmas related to the role s interpretation and implementation HR BP role (and lots of other connected HR roles and activities) is used by the organizations disturbingly ambiguously and diversely. Description of the role has an unreasonable individual focus, little attention is paid to the whole HR context and the changing role of managers. Implementation of HR BP role is unreasonably HR home affair managers are rarely involved into its creation and defining expected Business results and benefit. Clear (Ulrich type) HR BP role is very rare, transitional situation/role is typical in most of the cases 7% 14% 18% 34% 27% 0%10%20%30%40%50%60%70%80%90%100%%Nincs generalistaAlapvet en generalistaGeneralista + HR BPHR BP + GeneralistaTiszta HR BPNo generalist Generalist + HR BP HR BP+ Generalist Clear HR BP Different roles can be described with different objectives, success criteria, competencies and frames of cooperation.

10 Passage between the roles is motivating because of development. However it forecasts ambiguities and uncertainty. It is difficult to make standardized interpretations and suggestions related to HR BP role because of the diversity. Mainly generalist Ways of implementing the HR BP role Very different practices in relation to the HR BP role Expected and real working hours ratio related to certain activities is between 0-50%. The number of managers who are supported by the HR BP is between 3-70. Comparing different practices, the following basic models can be identified Some organizations operate in Professional model doesn t have Generalist or HR BP. Generalist BP, who fills the BP part of the role within informal frames and from personal power. Mini HR Director (MHRD) BP, who is responsible for transactional and transformational tasks. Behind it is an HR organizational model which provides well developed HR Full Service. Ulrich BP who fills in an independent, internal consultant role, as a part of the Ulrich model s three legs.