10 minutes on People hot topics _________________________________A closer look at the role of the HR Business Partner

February 2015

The last two decades have seen the ‘modernisation’ of the HR function, with close to 60 per cent of

HR organisations now using a hybrid of shared services and outsourcing, and a further 30 per cent

using shared services1. HR practitioners have had to adopt new skills and ways of working to manage

an increasingly mobile, global and contingent workforce.

Throughout this change, how Corporate HR interacts with line management has changed, and the role

of the HR Business Partner (HRBP) has been challenged. A lack of collective agreement on what the

role ‘should do’ is complicated by different businesses in varying stages of maturity and growth

demanding different services from their HRBPs.

Through our work with Australian public, government and private organisations, PwC is seeing the

role of the HRBP as a common challenge. Through a series of interviews with Australian business

and HR executives, we identified three common reasons for this challenge:

1. lack of role clarity and ambiguous capability requirements

Following an HR transformation, the retained HR work often remains undefined once

transactional work has been automated or outsourced. The capabilities needed for an HRBP role

to be effective are different from the traditional ‘HR Manager’ role, yet requirements are often

not upgraded.

2. Barriers within the organisation’s own HR Operating Model

Each HR operating model, and therefore HRBP role, will be slightly different depending on the

organisational landscape and level of HR function maturity. However, interactions within the HR

operating model are often ill-defined or not well understood. Unrealistic assumptions on the

maturity of the HR operating model may mean the reality of the HRBP role involves a much

greater level of administration than anticipated.

1 HfS Research Ltd, 2012, N = 362 Enterprises

3. Mismatched expectations between business leaders and HR Business Partners

“For years business managers have experienced only the most tactical of HR capabilities and

have learned to interact and use HR services solely in this way”2. Companies must redefine how

HRBPs will work with the business under a new HR operating model to ensure role clarity and

provide business leaders with the opportunity to transition to different ways of working.

So what is the primary role, and what are the key characteristics, of an HRBP in today’s

organisations?

2 HfS Research Ltd, 2012

The role of the HR Business Partner

Ultimately, the role of the HR Business Partner is to drive business performance through the

interpretation and execution of the organisation’s people strategy.

In order to do this effectively, it means shifting the focus away from strategy and towards

execution. However, to be successful, HRBPs need to function with reference to a single

people strategy, or set of priorities, which are aligned to the business strategy.

HR organisations without a people strategy in place will see duplication and inefficiency across

business units and ultimately a lack of execution. “Strategy is what you do for the first 10

minutes of the day… the HRBP role is mostly in executing. HRBPs should not be creating

competing people strategies”3.

Role breakdown

We believe the HRBP role can be broken into three components: 10 per cent strategy, 80 per

cent execution and 10 per cent administration.

3 Australian executive interviews, PwC Australia

10 per cent strategy

HRBPs already interpret and apply the people strategy within their own business unit or

region. Our view, however, is that this currently forms too great a focus of the role and

should be ‘capped’ at 10 per cent of overall work effort. “HRBPs should be selecting a

solution from a suite or ‘palette’ of answers; you don’t want HRBPs to frame every

problem.”4

The challenge is to influence both the development of the organisation’s people strategy and

the execution of initiatives into the business to ensure alignment of people initiatives across

the organisation.

80 per cent execution

Execution is the foundation of HR service delivery and HRBPs are accountable for executing

initiatives across the employee lifecycle. However, initiatives, and the role, will look

different depending on whether the business is currently transforming, in a growth phase or

moving into cost containment.

In practice, execution requires a focus on results and activities that have a measurable impact

on business performance. The challenge is to develop and implement employee lifecycle

initiatives whilst balancing additional business needs.

10 per cent administration

There is 10 per cent administration in any role and HRBPs are no different. However, the

distinction is that the role of the HRBP is not to execute on the transactional activities of the

employee lifecycle. “Managers ‘manage people’, not HRBPs”5.

PwC acknowledges the transition away from transactional activities can be hard to manage

and is dependent on the organisational landscape and the maturity of the HR function.

Ensuring HR foundations are in place and discipline around operational excellence will

enable ‘10 per cent administration’ to become a reality.

4 Australian executive interviews, PwC Australia 5 Australian executive interviews, PwC Australia

80% Execution

Execute employee lifecycle initiatives to

deliver the people strategy and drive

business performance

10% Admin

There is 10% admin within

any role

10% Strategy

Interpret and apply the

people strategy

HR Business Partner characteristics

The technical skill requirements of an HRBP will vary

depending on whether the organisation is transforming,

in a growth phase or moving into cost containment. The

key characteristics of an HRBP, however, remain the

same regardless of the organisational landscape.

A focus on delivery, leadership, critical thinking and

influencing are highly valued by business and HR

executives alike. The number one criteria, however, is a

commercial mindset and strong business acumen. “A

HRBP doing a business role is a must in their career …

the role is about understanding what the business is

doing and the practical implications of this particular

company, not the theory. Success is the HRBP being on

the business succession plan.”6

Trust, maturity and resilience also rate highly. “I want a

HRBP who I can trust, who delivers and who

understands the work we do. HRBPs need resilience

and to be able to think in a systematic way… there is no

time for the ‘victim mindset’ and thinking they need to

‘have a seat at the table’. They are at the table and we

need their help.”

6 Australian executive interviews, PwC Australia

Table 1: HR Business Partner characteristics

Characteristic Described in the context of a HR Business Partner role

Business acumen

Assumes accountability to achieve business objectives, instead of HR objectives7

Understands how the business operates and applies a commercial mindset to people decisions

Applies in-depth knowledge of business management concepts and practical applications gained

through cross-functional business experience; e.g. has completed a rotation through the business

Delivery-focused

Focused on results and not activities

Has a measurable impact on business performance

Has the confidence of the executive group based on quality of advice and counsel that delivers

performance impact

Leadership and

influencing

Forges deeper relationships with senior executives and coaches them through important organisational

changes8

Has maturity in challenging business leaders. “You are now non-compliant, don’t expect me to do

nothing”9

Predicts changes and influences using excellent interpersonal and communication skills

Acts as the broker for alternative delivery and sourcing models such as shared services or outsourcing

Judgement and

critical thinking

Identifies how business performance is impacted by people and workforce metrics10

Understands the root cause behind people and workforce issues using strong analytical and problem-

solving skills

Uses evidence to influence business decision making

Has strong commercial sense and judgement reflected in key decisions made

Resilience

Is a credible voice with business leaders; “Confronts the business and is a broker between parties”11

Is able to maintain their agenda under pressure rather than revert to compliance

Has demonstrated career flexibility and adaptation skills; e.g. undertaken successful industry or

company changes

7 HfS Research Ltd, 2012 8 HfS Research Ltd, 2012 9 Australian executive interviews, PwC Australia 10 HfS Research Ltd, 2012 11 Australian executive interviews, PwC Australia

un o 2012 | 10 Minutes

Managing change

We understand the transition to a redefined and refocused HRBP role is a challenging one,

particularly during or after a transformation program. Here are some tips for managing the

change:

Be prepared to revisit the role following an HR transformation and accept that changes

may need to be made, including work the HRBPs will no longer do

Ensure HR foundations are in place to enable a shift away from transactional activities

Allow time for individuals to transition to a redefined HRBP role in a new or changed

operating model. Make realistic assumptions that will support HRBP. For example, if the

technology is still changing, acknowledge that workarounds will increase HRBP

administration

Work with business leaders to agree how interactions between HRBPs and the line will

work in practice. Continually adjust and refine this working relationship as the

organisation changes

Build consistent capability and acknowledge when individuals are not suitable for the role

Put a mechanism in place for HRBPs to support each other. They are often in a virtual

team but this does not mean they cannot be supported and connected

Each time the HR operating model changes, ensure HRBPs are clear on their own

accountabilities and ways of working before they are required to be the engagement

channel for the business.

To have a deeper discussion about these issues, please contact:

Justin Sturrock, PwC Australia

Partner, People & Organisation

61 (2) 8266 3895 justin.sturrock@au.pwc.com

The information contained in this publication is general in nature and does not constitute advice. PwC will not be held responsible to those persons who act solely on the information

provided in this document. You should seek your own professional advice from an appropriately qualified person on your company’s specific situation before taking any actions on this

issue.

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