Being an HR business partner is something different. It is something more.
Few weeks ago I had a discussion with an HR colleague about business partnering.
She told me she thought her company was one of the really few that truly implemented the HRBP model, because all people responsibilities are on Line Managers. They run all the people processes autonomously and they always have the final call on all people decisions (eg who to hire, who to fire, who to promote…). In all those decisions HR plays only a consultancy role.
In other words, the role of HR in that company is about designing efficient and effective people processes and teaching Managers how to run them properly. Usually, but it is not necessary to, HR is consulted on people decisions.
In that company, the HR function has only process-related KPIs in its dashboard, such as lead time for the recruitment process or % of completed performance reviews. They don’t truck any business-related KPI like early turnover, cost per hire, n. of successors per key position or ratio of internal promotions vs external hires. Not to mention employee productivity rate or any other people cost data.
It is not that they don’t have those data (they have one of the most advanced HRIS solutions). It is they don’t use them, in perfect coherence with their vision of what HR business partnering is.
The company I’m talking about is a market leader in its segment and it is successful since many decades. So definitely such HR approach is possible.
But my question is: do companies really need to have an internal HR function that offers that only? If the mission of the HR function and the KPIs it is measured on are only process and service related, wouldn’t be better to use external partners who are experts and therefore more competent in each single HR topic than any HR function could ever be?
Of course the HR function is a service provider. Of course it is our role to design effective people processes that help Managers with identifying and growing their people and of course ownership of people development is in Line Managers hands, primarily.
But these are foundations, meaning an HR function cannot exist without them.
Being an HR business partner is something different. It is something more.
It is about the CHRO sitting with his colleagues in the Leadership Team discussing about business and taking decisions on where and how to grow the company. It is about contributing to the bottom line and measuring your HR professional performance against that.
It is about the VP of Business Development asking the CHRO an opinion on whether or not we should enter a market segment, because he knows he has a professional in front of him who is competent with numbers, knowledgeable of the business and therefore can effectively contribute with his thinking.
It is about the CHRO being able to read a P&L and a Balance Sheet. And it is about him being able to engage his colleagues on defining the appropriate People Strategy exactly as they involve him in developing the Business Strategy.
It is about an HR function that has HR business –related indicators in its dashboard, measuring how much it is contributing to the bottom line.
You get what you measure.
More.
You are what you measure.