DSE HRT Bootcamp

HR business Partner

June 2012

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Agenda

1 The role of the HR Business Partner

2 HR Business Partner the current state

3 Organisational design

4 Lessons learned implementing the HR Business Partner role

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1. What is HRT?
Objectives of HRT projects
About 80% of all HRT projects are
implemented primarily for cost
savings
Filling the gap between HR capabilities and business needs
Senior business executives
want HR to be more
effective
Only 4% describe HR as highly
effective in addressing the needs
of the business
60% describe HR as moderately
effective
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2 out of 3 HRT projects are
implemented with an eye
towards standardising
processes
People and HR are often HR is often out of the loop on
treated separately: strategic issues.
People issues are Companies that rarely or never
considered strategic consult their senior HR team on key
business issues:
HR issues are Mergers and acquisitions (63%)
perceived as Compliance and regulation (26%)
administrative Talent (25%)
The role of the HR
business partner
HR Business Partners are a key element of the transformed HR
function

Business Partner Centers of Expertise (COE)

HR Business Partners are COEs are comprised of teams of
dedicated to providing business technical HR experts (e.g.,
unit specific strategic and benefits design, compensation
consultative services to executives design, organization development)
and line managers related to the who are shared by the business
people-related issues impacting units. COEs provide strategic,
their business unit. Business design and consultative services
Partners broker technical talent to HR Business Partners and
(e.g., benefits design, assist the HR Service Center in
compensation design, organization resolving complex issues. Vendor
development) from the COEs to Managers can be within the COEs.
deliver HR solutions.

Vendor Manager Outsourcer

Vendor Manager is responsible for The strategic outsourcing of non-
ensuring that the vendor partner core competency functions and/or
Shared Services provides contracted activities, those that are more efficiently
measures performance against the delivered by the third party allows
Shared Services respond to
SLA and coordinates vendor the HR function to improve HR
employee inquiries and processes
activity to meet current service delivery, while reallocating
HR transactions in order to
operational, future capacity and resources to more value-added
significantly reduce HR Business
project needs. In addition, the activities.
Partner and COE involvement in
position assists both development
routine administrative tasks and
and operational teams in
inquiries (e.g., benefits, payroll,
implementing application and
data maintenance). A Service
process related changes and
Center is a type of Shared
enhancements. Vendor Managers
Service. Vendor Managers can
can reside within the COEs,
reside within Shared Services.
Shared Services or as its own HR
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Role.
Our clients are consistently asking us for our opinion on HR
Business Partners

What does the title HR Business Partner? really mean?

How many HR Business Partners do we need?

Where do I find quality HR Business Partners?

Is it possible to develop my people into HR Business Partners?

How do I measure the impact of my HR Business Partners?

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What is an HR Business Partner?
Confusion around the role
Ask ten people what it means to be an HR Business Partner and you will probably get
ten different answers.
There are tons of roles, all with the title of HR Business Partner, underpinned by
different job profiles and commanding a range of salaries.
There is clear variation both in terms of role accountability and expectations.

0 Deloitte Touche Tohmatsu. All rights reserved.

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Operational and Strategic role
One enables the other
The business partner role complements a strong operational excellence role

Strategic focus

Strategy Change
Partner Agent

Processes People

Administrative Employee
Expert Champion

Operational focus

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What is business partnership?

HR Business Partners are dedicated to providing service line specific strategic and
business consultative services to Partners and Directors, aiming at delivering people
solutions to business problems.

Business Partners broker technical expertise (e.g., compensation & benefits design,
organization development, learning management) from the HR Centers Of Excellence
to deliver HR solutions

To be successful, HR Business Partners must be actively involved in the development

and execution of business strategy, moving beyond the play of policy police, regulatory
watchdog and provider of administrative HR services.

To be successful, HR Business Partners must not only master the basics of HRM,
they must also have a deep understanding of business strategies, operations,
and requirements.

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The impact on the business of the different categories of HR
Business Partner varies the Strategic Partner has the greatest
impact
Strategic Operations Emergency Employee
Partner 33% Manager 11% Responder 8% Mediator 8%
Impact Impact Impact Impact

Source:
11 Corporate Leadership Council
So what should the Strategic HR Business Partner do?

Strategic HR Business Partner will: Examples of Strategic HR Business Partner

Operate as an internal business consultant
Have significant access to senior executives
and help to shape business strategy
Build strong credibility at senior levels
Understand industry trends and anticipate
the impact on the workforce
Drive manpower plans based on business
strategy 2+ years ahead
Have a strong dependency on other HR
roles within the Service Delivery Model
Be relatively few in number and aligned to
profit and loss accountability within the
organisation design
Projects:
Customer Service transformation (supporting
movement from product-led to service-led
organisation)
Analysis of link between employee
engagement / absence management and
associated costs
Talent Management strategy (Exiting Baby-
Boom Generation and supporting Generation
X&Y)
M&A integration
Supporting Outsourcing and Offshoring
strategies
Managing large-scale cost reduction
programmes
Organisation Design

There are currently few successful examples of true Strategic HR Business

Partners within industry. Where this function does operate, it is often carried out
by the Corporate Strategy team rather than HR.

12 HR Business Partner need to have a deep understanding of the business

Sample: HRBP Process Related Responsibilities
Below is a sample HRBP Role profile outlining the process-related activities that a HRBP
can be responsible for. Notice that administrative tasks are not within the scope of HRBP
role.
Process-Related Activities
Strategic Staffing
Identify and build key talent segments and
provide input to workforce plan/staffing model
Work with managers to execute workforce
plan and strategy
Interview candidates as necessary (critical
talent and senior level positions)
Provide coaching to managers
Resource allocation
New Hire/Termination
Manage business justification
Work with outplacement counselors
Provide coaching to managers
Review and analyze turnover data
Learning
Identify business needs for learning
Provide input on solution development
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Performance Management Employee Data Administration
Facilitate sessions with leadership to develop N/A
and communicate business goals and
objectives Benefits
Drive continuous performance improvement Market benefits programs to employees
Coach managers on developing appraisals
and delivering feedback
Time & Attendance
Resolve performance rating disagreements
N/A
Provide coaching and guidance to managers
on promotions, demotions, and transfers
Payroll
Leadership Development
N/A
Succession Planning
Future state/forecasting talent needs
Employee Relations
Receive grievances and disciplinary issues
Rewards
(critical talent and senior level positions)
Meet with leadership to discuss salary
guidelines
Employee Retention
Finalize salary plan/budget
Conduct business unit feedback sessions
Provide consultative guidance and coaching
to managers on pay for performance Develop process to cascade findings to the
philosophy and implementation organization
Work with managers to resolve Coach managers on communicating
disagreements feedback
Analysis/differentiation Retention plan based on analysis
Develop game plan to address issues
HR Business Partner the
current state
 HR still to become a
strategic business
partner: EMEA
A Mercer study revealed that 65% of human resource departments perceive themselves as a

strategic partner to their business. However, in reality only 15% of activities carried out by

human resource departments across Europe, the Middle East and Africa are related to pure

strategic interventions, according to 500 human resource directors surveyed by Mercer. All

the directors surveyed believed that HR is a strategic partner because it is an active

participant when discussing important business-wide issues.

(Benefits & Compensation International, March 1, 2011)

So why cant HR Business Partners be more strategic?

The top reasons why HR BPs are not more strategic can be categorized according
to Infrastructure, Capabilities and BP Service Delivery

Infrastructure Capabilities
Capabilities
Poor data availability to make data driven decisions Not enough HR people with the credibility, core
Poor technology infrastructure and compromised competencies (i.e. business acumen) and
administrative efficiency consulting skills to perform the role
Limitations of the CoE Line Manager capability or reluctance to perform
Limitations of the SSC the people management role
Limited talent pool for the new BP
Challenges of operating internationally

BP Service Delivery

HR operating as a Customer Relationship Manager and a broker of specialist HR services

Mismatch of HR BP to the business leading to poor line-HR partnerships

There is a lack of understanding of the importance of measuring the value of HR interventions / Human Capital and
a lack of capability in applying metrics to HR solutions

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Typical HR Business Partner Challenges

Top Reasons HR Business Partners Have Not Fully Delivered on the Strategic Promise of HR

The absence of a clear business strategy with which HR can work in the absence of corporate strategy, business
partners must understand the value drivers of the business unit

The role is insufficiently defined leaving business partners without comprehensive role clarity requires a clear definition
of HR business partner roles in conjunction with other parts of HR

Line managers do not believe HR has the capability to work with or understand business strategy must deliver and
manage HR value proposition and brand

The troubled history of relations between HR and the line (e.g. HR still seen by some as the regulators of employment rules)
requires real culture change which HR must lead

There are not enough HR professionals with the skills and credibility to perform the role the skill set must be bought or
built

The role does not sufficiently account for true customer requirements (managers may be more likely to want more
operational than strategic support) HR needs to educate the business on HR value

Line managers are reluctant to perform people management responsibilities and continue to push back their responsibilities
to BPs manager scorecards must clearly articulate/measure people management responsibilities

Poor technology infrastructure and compromised administrative efficiency continues to require BPs to perform administrative
activities remaining admin roles must be removed from BP scope to another party

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Organisational design
HR Business Partner Benchmarking

Organisation No of FTES No of HR BPs FTE ratio

Thomson Reuters 50,000 251 1:199

RBS 85,000 333 1:255

Rolls Royce 21,000 65 1:323

ABN Amro 93,000 279 1:333

Prudential 6,500 17 1:391

Orange 11,000 21 1:523

Merrill Lynch 45,000 63 1:714

Lloyds TSB 80,000 92 1:866

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2012 Deloitte Slovakia

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