Csr Hr Committee Hr Bp Presentation Jan Uriga

7/25/2019 Csr Hr Committee Hr Bp Presentation Jan Uriga

1/19

1

DSE HRT Bootcamp

HR business Partner

June 2012


2/19

2

Agenda

HR Business Partnerthe current state2

Lessons learned implementing the HR Business Partner role4

The role of the HR Business Partner1

Organisational design3


3/19

3

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

HR is often out of the loop on

strategic issues.

Companies that rarely or never

consult their senior HR team on key

business issues:

Mergers and acquisitions (63%)

Compliance and regulation (26%)

Talent (25%)

People and HR are often

treated separately:

People issues are

considered strategic

HR issues are

perceived as

administrative

Senior business executives

want HR to be moreeffective

Only 4% describe HR as highlyeffective in addressing the needsof the business

60% describe HR as moderatelyeffective

2 out of 3 HRT projects areimplemented with an eye

towards standardising

processes


4/19

The role of the HRbusiness partner


5/19

5

HR Business Partners are a key element of the transformed HR

function

Outsourcer

The strategic outsourcing of non-

core competency functions and/or

those that are more efficiently

delivered by the third party allowsthe HR function to improve HR

service delivery, while reallocating

resources to more value-added

activities.

Vendor Manager

Vendor Manager is responsible for

ensuring that the vendor partner

provides contracted activities,

measures performance against the

SLA and coordinates vendor

activity to meet current

operational, future capacity and

project needs. In addition, the

position assists both development

and operational teams in

implementing application and

process related changes and

enhancements. Vendor Managerscan reside within the COEs,

Shared Services or as its own HR

Role.

Shared Services

Shared Services respond toemployee inquiries and processes

HR transactions in order to

significantly reduce HR Business

Partner and COE involvement in

routine administrative tasks and

inquiries (e.g., benefits, payroll,

data maintenance). A Service

Center is a type of Shared

Service. Vendor Managers canreside within Shared Services.

Business Partner

HR Business Partners are

dedicated to providing business

unit specific strategic and

consultative services to executives

and line managers related to the

people-related issues impacting

their business unit. Business

Partners broker technical talent

(e.g., benefits design,

compensation design, organization

development) from the COEs to

deliver HR solutions.

Centers of Expertise (COE)

COEs are comprised of teams oftechnical HR experts (e.g.,

benefits design, compensation

design, organization development)

who are shared by the business

units. COEs provide strategic,

design and consultative services

to HR Business Partners and

assist the HR Service Center in

resolving complex issues. VendorManagers can be within the COEs.


6/19

6

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?

What does the title HR Business Partner? really mean?

Our clients are consistently asking us for our opinion on HR

Business Partners


7/197

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.


8/198

The business partner role complements a strong operational excellence role

Operational and Strategic role

One enables the other

People

Operational focus

Processes

Strategic focus

StrategyPartner

ChangeAgent

AdministrativeExpert

EmployeeChampion


9/199

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 peoplesolutions 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.


10/1911

The impact on the business of the different categories of HR

Business Partner variesthe Strategic Partner has the greatest

impact

Strategic

Partner 33%

Impact

Operations

Manager 11%

Impact

Emergency

Responder 8%

Impact

Employee

Mediator 8%

Impact

Source: Corporate Leadership Council


11/1912

So what should the Strategic HR Business Partner do?

Strategic HR Business Partner will:

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

Examples of Strategic HR Business Partner

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.

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


12/19

14

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 HRBProle.

Strategic Staffing

Identify and build key talent segments andprovide input to workforce plan/staffing model

Work with managers to execute workforceplan and strategy

Interview candidates as necessary (criticaltalent 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

Employee Data Administration

N/A

Benefits

Market benefits programs to employees

Time & Attendance

N/A

Payroll

N/A

Employee Relations

Receive grievances and disciplinary issues(critical talent and senior level positions)

Employee Retention

Conduct business unit feedback sessions

Develop process to cascade findings to theorganization

Coach managers on communicatingfeedback

Retention plan based on analysis

Develop game plan to address issues

Process-Related Activities

Performance Management

Facilitate sessions with leadership to developand communicate business goals andobjectives

Drive continuous performance improvement

Coach managers on developing appraisalsand delivering feedback

Resolve performance rating disagreements

Provide coaching and guidance to managerson promotions, demotions, and transfers

Leadership Development

Succession Planning

Future state/forecasting talent needs

Rewards

Meet with leadership to discuss salaryguidelines

Finalize salary plan/budget

Provide consultative guidance and coachingto managers on pay for performancephilosophy and implementation

Work with managers to resolvedisagreements

Analysis/differentiation


13/19

HR Business Partner

thecurrent state


14/19

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)

HR still to become astrategic businesspartner: EMEA


15/19

18

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

CapabilitiesInfrastructure

Poor data availability to make data driven decisions

Poor technology infrastructure and compromised

administrative efficiency

Limitations of the CoE Limitations of the SSC

Challenges of operating internationally

Not enough HR people with the credibility, corecompetencies (i.e. business acumen) and

consulting skills to perform the role

Line Manager capability or reluctance to performthe people management role

Limited talent pool for the new BP

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 anda lack of capability in applying metrics to HR solutions

Capabilities


16/19

22

Typical HR Business Partner Challenges

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

The role is insufficiently defined leaving business partners without comprehensive role clarityrequires a clear definition

of HR business partner roles in conjunction with other parts of HR

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

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

built

Line managers are reluctant to perform people management responsibilities and continue to push back their responsibilities

to BPsmanager scorecards must clearly articulate/measure people management responsibilities

Poor technology infrastructure and compromised administrative efficiency continues to require BPs to perform administrative

activitiesremaining admin roles must be removed from BP scope to another party

The absence of a clear business strategy with which HR can workin the absence of corporate strategy, business

partners must understand the value drivers of the business unit

The troubled history of relations between HR and the line (e.g. HR still seen by some as the regulatorsof employment rules)

requires real culture change which HR must lead

Line managers do not believe HR has the capability to work with or understand business strategymust deliver and

manage HR value proposition and brand


17/19

Organisational design


18/19

24

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


19/19

29

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK

private company limited by guarantee, and its network of member firms, each

of which is a legally separate and independent entity. Please see

www.deloitte.com/sk/about for a detailed description of the legal structure of

Deloitte Touche Tohmatsu Limited and its member firms.

2012 Deloitte Slovakia

Documents

Csr Hr Committee Hr Bp Presentation Jan Uriga