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JULY 2024

The HRBP of the Future: Navigating a New HR Operating Model

Mehreen Khan

Human Resources Business Partners (HRBPs) are now integral to HR departments. They are currently among the top HR roles that companies are hiring. A changing business landscape and a growing need for agility have transformed the HR domain. This shift also impacts the role of HRBPs, who are now expected to be nimble, business-minded, and strategic.

As HR evolves, HRBPs are taking on more significant responsibilities to meet new challenges. Their role is expanding beyond traditional operations, positioning them to play a strategic part in driving organizational goals.

Future-oriented changes and innovations will continue to redefine how HRBPs support their organizations, and give them an essential role in promoting a thriving and competitive workplace.

What is an HR Business Partner?

An HRBP, also referred to as a People Business Partner (PBP), works closely with business leaders to understand people’s priorities, develop people plans, and support organization-wide initiatives. According to SHRM, HRBPs are responsible for aligning business objectives with employees and management in designated business units. Their in-depth business knowledge makes them the go-to experts for specific business areas, ensuring alignment between HR strategies and an organization’s goals.

The HRBP handles a wide range of responsibilities, from hiring and benefits to compliance and employee relations.

Known for their reliable communication and problem-solving skills, HRBPs respond swiftly to issues and support employee needs.

Responsibilities of HRBPs

HRBPs serve as strategic partners to department heads and senior management, developing HR strategies that align with and support specific business objectives.

A key part of their job duties is designing and implementing programs for talent acquisition, people development, and retention that directly tie to business needs.

HRBPs assist in organizational design and change management initiatives to improve efficiency and culture, while establishing metrics for HR success that align with business and HR performance indicators.

Their role can also involve HR Business consulting, coaching, succession planning partnership, and providing legal compliance expertise.

HR Operating Model – Key to Driving Business Success

In the past few decades, the dominant HR model was built around a view of the HR organization that its primary purpose was to address business leaders’ concerns about saving costs and increasing business efficiency.

The three-pillar HR model pioneered by Dave Ulrich included HRBP, Shared Services, and Centers of Excellence with leadership on top. In this model, HRBPs have a heavy operational focus, limiting their capacity to support strategic initiatives.
More recently, a predominant perception is that this model is outdated, frequently falling short of achieving cost-saving goals and contributing to a fragmented candidate and employee experience. According to Gartner 2022 research, only 30% of HR leaders believe their current structure enables adaptability to changing business priorities.

With modern pressures such as recent inflation, increasing competition for top talent, and supply chain disruptions, HR leaders are looking to adopt an updated model to become more flexible and agile and to respond effectively to an ever-changing and uncertain environment.

The New HR Operating Model

Chief Human Resources Officers (CHROs) are adopting a fresh approach to the operating model that analyst firm Gartner sees as being guided by four key priorities.

Building a Dynamic HR Operations and Service Team.
Transforming HRBPs into Strategic Talent Leaders.
Developing a Dynamic Pool of HR Problem Solvers.
Establishing agile teams with next-generation COEs.

In the new HR business model, next-generation Centers of Excellence (COEs) are more streamlined and adaptable. They use their specialized knowledge to quickly adjust and meet changing talent needs.

Gartner shows this transition from the old, three-part model into a new HR Operating Model of the Future that is optimized to help modern HR leaders meet business goals. The model includes:

Lean, agile COEs;
a dedicated HR Operations and Service Delivery team; and
three different-in-kind HRBP roles that serve specific functions in the HR organization.

The new model’s comprehensive HR operations and service delivery team manages the data, analytics, and technology that enhance HR’s operational efficiency. Extending beyond the traditional scope of shared services, this team ensures a more integrated and efficient approach to HR functions.

Further, Gartner reports the traditional HR Business Partner or HRBP role has also transformed into three distinct and specialized roles.

HRBP roles under this model include:

Strategic Talent Leaders who focus on developing and implementing talent strategies to align with the organization’s goals.
HR Problem Solver Pool that consists of experts who address and resolve complex HR issues.
People Relations Managers who concentrate on fostering positive employee relations and handling interpersonal dynamics within the workplace.

This evolution reflects a more targeted and effective approach to managing human resources.

In our work with HR leaders and their organizations, our team has found that the HRBP role has evolved significantly, with role descriptions varying widely by company and specialized by business area.

HRBPs as Strategic Talent Leaders

In the first role for HRBPs, they set aside operational concerns to focus on talent strategy.

By handing operational responsibilities to a service delivery team, these HRBPs can focus on challenges and opportunities related to talent within a specific department or business unit.

These folks must look at the big picture to determine how talent strategy can help accomplish business goals. The role of HRBPs is evolving to meet the dynamic demands of today’s workforce. HRBPs are now essential strategic partners to Talent Acquisition (TA) teams, working closely to attract and select exceptional talent. They go beyond traditional HR functions by collaborating with TA to analyze the market landscape, providing critical insights that help shape growth and competitive strategies in highly sought-after fields and markets. This partnership assures that organizations not only find the right talent but also stay ahead in an increasingly competitive environment. By aligning talent acquisition with broader business goals, HRBPs play a pivotal role in driving organizational success and fostering a thriving workplace culture.

HRBPs as Problem Solver Pool

The new HR model also demands an HRBP team that owns the problem-solving function previously owned only by individual HRBPs. This group of HR professionals dedicate their efforts to addressing issues by updating policies, practices, and resources. This agile team helps tackle the most important HR problems. Working on short-term projects, they collaborate both with end-users and C-suite leaders.

HRBPs as People Relations Managers

This group of HRBPs focuses on addressing urgent employee needs. From legal compliance issues to workplace disputes, People Relations Managers take on responsibilities traditionally owned by the HRBP. This creates space and opportunity for talent leaders to focus on strategic planning and execution.

Benefits of the Evolving HRBP Roles

Evolving the HRBP role into the focus areas shared above can lead to enhanced organizational capabilities and efficiency. Our team at Frederickson has heard about these improvements firsthand–below area some examples of the benefits.

Enhanced Strategic Alignment with Business Goals

Proactive Talent Management: HRBPs in their strategic role can anticipate talent needs and create proactive strategies to ensure the organization has the right people in place to achieve its goals.
Data-driven decision-making: Leveraging analytics, HRBPs provide insights that align HR initiatives with business outcomes, ensuring that HR efforts directly support organizational objectives.

Increased Efficiency and Agility

Streamlined Operations: By delegating operational tasks to a specialized service delivery team, rather than directly handling them as they would have previously, HRBPs can focus on strategic initiatives, leading to more efficient HR operations overall.
Agility in HR Practices: The evolving model allows HRBPs to quickly adapt to changing business environments and workforce needs, providing more responsive and flexible HR support.

Improved Employee Relations and Engagement

Focused Employee Support: With some HRBPs now in dedicated roles like People Relations Managers, employee concerns and interpersonal dynamics are handled more effectively, leading to better employee satisfaction and engagement.
Enhanced Employee Experience: This more streamlined and efficient service delivery improves the overall employee experience, from onboarding to career development, contributing to higher retention rates.

Better Problem-Solving Capabilities

Dedicated Problem Solvers: The creation of a dynamic pool of HR problem solvers ensures that complex HR issues are addressed promptly and effectively, reducing downtime and enhancing productivity.
Innovative Solutions: This agile team is equipped to develop innovative solutions to emerging HR challenges, keeping the organization ahead of potential issues.

Greater Focus on Talent Development

Leadership Development: Strategic Talent Leaders can focus on identifying and nurturing future leaders within the organization, ensuring a robust leadership pipeline.
Comprehensive Talent Strategies: HRBPs can develop and implement comprehensive talent development strategies that encompass recruitment, employee development, and retention, aligned with the long-term goals of the business.

Cost Savings and Resource Optimization

Efficient Resource Allocation: By optimizing the HR operating model, organizations can allocate resources more effectively, leading to cost savings and better utilization of HR capabilities.
Improved ROI on HR Initiatives: With a focus on strategic HR activities, the organization can achieve a higher return on investment from HR initiatives, contributing to overall business success.

Enhanced Organizational Culture

Positive Workplace Environment: Through focused efforts on employee relations and engagement, HRBPs help cultivate a positive and supportive workplace culture.
Alignment with Organizational Values: HRBPs ensure that HR practices are aligned with the organization’s core values, promoting a cohesive and motivated workforce.

Scalability and Future Readiness

Scalable HR Solutions: The evolving HR model allows for scalable solutions that can grow with the organization, ensuring HR practices remain effective as the business expands.
Preparedness for Future Challenges: By adopting next-generation practices, organizations are better prepared to face future challenges, ensuring long-term sustainability and success.

HRBP Case Studies

The following case studies showcase two HRBP leaders our team collaborated with, highlighting the diverse demands and opportunities inherent in the HRBP role.

The HRBP role helps a leader gain critical and strategic skills: In our first case study, an HRBP built a well-rounded set of skills over a decade that allowed a smooth transition into a strategic leadership position. When their HR leader had to go on leave for 6 months, this individual managed the entire HR department, successfully applying their HRBP skills in a senior capacity.In their HRBP role, they had created strategic initiatives based on data from surveys including learning and development initiatives, corporate and executive communications, and benefit design, all of which resulted in improved employee engagement year over year. In another earlier HRBP role, the deliverables had included succession planning, leadership development, career ladders, and other people programs.
An HRBP excels and evolves to HR executive leadership: Our second case study is an HRBP employed at a supply chain company for several years. This high-performing person’s role extended beyond operational duties, encompassing coaching, workforce planning, and driving key initiatives for succession planning, compensation, and transformation initiatives. They also championed DEI initiatives across the organization. This experience prepared the HRBP to move on to a separate, global company and excel first in the role as a Senior HRBP and eventually as a Vice President of HR.

These cases make it evident that the HRBP role includes a strategic component that can enable HRBPs to advance to senior HR leadership roles. They also provide a good example of how companies can develop talent in-house.

Conclusion

The HRBP role is rapidly evolving to meet the demands of today’s workforce. By transitioning from an operational task focus to one of strategic talent leadership, HRBPs will become key drivers of organizational success.

A new and emerging HR operating model allows HRBPs to enhance strategic alignment, increase efficiency, and improve employee engagement. This transformation is about adopting new practices and building a culture of continuous improvement and innovation within HR. By establishing a proactive, data driven HRBP model, HR strategies can better align with business goals, leading to better resource allocation, cost savings, and a positive workplace environment. By embracing these changes, organizations can cultivate a thriving and competitive workplace, prepared to tackle future challenges and seize new opportunities.

Looking to hire your next HRBP? Connect today with the team at Frederickson Partners, a Gallagher company, to learn more about our expertise and how we can support you.