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HR Competencies for 2030: A...

HR Competencies for 2030: A Future Standard

Written by Dieter Veldsman, Marna van der Merwe, Annelise Pretorius

14 minutes read

The world of work is rapidly changing. Changes are driven by global skills shortages and demographic shifts, generative AI, and the reimagining of work itself. To successfully manage these developments and remain relevant, HR professionals need to adapt and develop the right HR competencies to embrace future opportunities.

With these changes, the scope of HR is increasing to include domains such as sustainability, employee wellbeing, digital transformation, and analytics as organizations adjust their strategies to meet market demands. This calls for a revision of the outdated HR competency models that organizations are using.

That’s where the T-Shaped HR Competency Model comes in. The T-shaped model is our perspective as AIHR on the competencies we believe the HR professional needs to have to be successful in the future world of work.

Let’s dive into the details of these HR competencies and the T-shaped model.

Contents
T-Shaped HR Competency Model: An overview
Core HR Competencies
Specialist HR Competencies
Leadership Competencies
How HR professionals can develop these competencies
How HR teams can develop these competencies
FAQ

T-Shaped HR Competency Model: An overview

A competency model identifies and defines the knowledge, skills, abilities, and behaviors required to be successful within a specific profession or role. Competency models act as guidelines for individuals to understand what is expected from them in their work, where they need to focus in terms of development, and how they can enable themselves to be successful in their roles.

In the same vein, an HR competency model outlines the requirements of HR professionals across various levels to build robust HR capabilities across the function. In the appendix, you can read more about how the model was developed, validated, and improved over time.

At AIHR, we have spent considerable time researching and defining the core competencies required to perform well as an HR professional. We have based our analysis on prior publications and our research. This involved hundreds of conversations with senior leaders, thousands of interactions with individual learners, and quantitative testing, including well over 100,000 HR professionals.

We believe that HR professionals need to be T-shaped. Being T-shaped implies that all HR professionals, regardless of role or context, need to master five core competencies complemented by specialist domains that depend on their specific role or organizational requirements.

Beyond specialist skills, being T-shaped also entails mastering leadership competencies for HR leaders who manage people teams.

Embracing a T-shaped HR professional profile offers numerous advantages. Striking the right balance between core and specialized competencies empowers HR professionals to seamlessly juggle the demands of both generalist and specialist roles, all the while ensuring HR strategies align with the overarching business objectives.

According to BCG, HR is one of the most disrupted industries in terms of how quickly the skills required for the job have been changing. A versatile skill set encompassing both generalist and specialist expertise equips HR professionals to swiftly adapt to evolving business requirements, enhance the effectiveness of HR solutions, and stay relevant in the ever-changing corporate landscape.

Core HR Competencies

The bar of the T in the T-Shaped HR Competency Model contains the Core Competencies essential for all HR professionals. The first four (Business Acumen, Data Literacy, Digital Agility, and People Advocacy) help HR excel in enabling business and employees alike. The fifth competency, Execution Excellence, is focused on personal effectiveness and underpins all other competencies in the model.

Each of the Core Competencies comprises several Dimensions, which are the various aspects or areas of the competency that are important for successful performance in an HR role.

Let’s break down each of the five Core HR Competencies.

1. Business Acumen

An HR professional with Business Acumen interprets external trends, analyzes customer needs, and co-creates business strategy to achieve sustainable business results.

Dimensions to master

Context Interpretation	Identifies, interprets, and applies insight into external business trends and organizational factors
Commercial Fluency	Holds a clear understanding of organizational financial requirements and performance
Customer Knowledge	Understands customer needs and applies user-centric principles
Strategy Co-Creation	Co-creates business strategy and aligns HR priorities

In HR, aligning with organizational goals and industry trends is essential. HR professionals must understand and interpret these trends and craft strategies that seamlessly integrate with the business, elevating HR to a strategic partner role driving key business value. This is only possible with a thorough understanding of the commercial business value drivers.

Beyond alignment, HR should also look at the employee as their customer and apply user-centric principles to design products and services that meet a specific need. With this approach, HR can design solutions that resonate with employees, fostering a highly engaged and motivated workforce.

Lastly, HR needs to co-create and influence strategy to ensure that HR focuses on the right priorities and can demonstrate its impact through tangible metrics.

Business Acumen in practice

Ayanda, the HR Manager at CleanIT, a company specializing in hygiene products for the middle-income market, is gearing up for a crucial management meeting. Her objective is to present her workforce strategy for the upcoming year, which will be instrumental in aligning the company with current market trends. These trends have far-reaching implications for workforce planning and skill development.

Ayanda’s presentation draws from productivity data from the previous financial year. This data showcases the undeniable ROI of proactive skills development programs and underscores the potential production risks associated with an inadequate talent pipeline.

With these insights, Ayanda collaborates closely with her business counterparts to craft comprehensive workforce plans for each product line. The focus is clear: prioritize high-revenue products, which are key to achieving the current financial targets.

This strategic approach allows CleanIT to be well-prepared for the challenges and opportunities ahead.

2. Data Literacy

Data Literacy is the ability to analyze, interpret, and communicate people data to derive actionable insights, inform decision-making, and assess HR’s contribution to achieving strategic business objectives.

Dimensions to master

Data Driven	Grasps and uses data to make decisions and inform practice
Analytics Translation	Translates people data into actionable insights

Going forward, being data-driven is not just a desirable skill; it’s imperative. HR professionals must go beyond merely working with data and harness it to provide fact-based recommendations that catalyze business action.

This starts by being able to create, read, and apply data in an evidence-based and ethical manner. A critical competency in this domain is using data to tell compelling stories. It’s about creating narratives that transform raw data into actionable insights, integrating data-driven decision-making into HR’s operations.

In this new era of evidence-based HR, data is the cornerstone of informed choices, and HR professionals emerge as strategic partners, driving organizational success through data-driven storytelling.

Data Literacy in practice

Byron, the General HR Manager of LuxFor, a renowned hospitality group comprising multiple hotels and resorts, has been diligently enhancing workforce management strategies. In the past year, he led the implementation of data collection mechanisms to gain valuable insights into the seasonal workforce dynamics.

Leveraging these insights, Byron has developed a model that enables resort managers to pinpoint resourcing needs during the peak season rush accurately. Remarkably, this model has led to a 17% reduction in resourcing costs for LuxFor without compromising customer satisfaction.

Building on this success, Byron investigates another intriguing hypothesis: whether offering educational benefits for employees’ immediate family members could boost employee retention at LuxFor. Collaborating with the team, he gathers additional data to rigorously test this hypothesis. The data showcases that the lack of educational benefits and the inability to access an affordable school close to some rural resorts often lead to talent attrition. Using these insights, he crafts a compelling business case advocating for expanding LuxFor’s employee benefits package.

Byron opts for a more engaging approach rather than inundating his audience with charts and figures. He presents his recommendation through a storyboard, vividly illustrating the positive impact of additional benefits on employee loyalty and the compelling reasons for employees to stay with LuxFor. This creative and data-driven approach promises to drive meaningful changes in LuxFor’s HR policies, ultimately contributing to a more satisfied and committed workforce.

3. Digital Agility

Digital Agility refers to utilizing technology to increase the impact of HR and prepare the organization to adopt digital practices.

Dimensions to master

Technology Empowered	Integrates tech to build efficient, scalable, and impactful HR solutions
Digital Aptitude	Motivated to learn and experiment with digital ways of work
Digital Adoption	Creates an environment for digital adoption

In an increasingly digital world, HR professionals serve as champions for advancing the digital HR agenda and guiding broader business transformation into a digital future.

Digital Agility is more than just the adoption of digital tools; it’s adopting a mindset of continuous experimentation and developing the confidence to navigate and thrive in this digital reality. HR’s role extends beyond just harnessing technology for HR-related tasks. It entails shaping an organization’s digital journey.

By fostering a culture of innovation and adaptability, HR professionals can help their teams and organizations embrace the digital age. In this capacity, they become architects of change, driving the transition toward a digital future that promises new opportunities and efficiencies.

Digital Agility in practice

Thobela, the HR Business Partner at BuyWyze, an international online financial platform for money transfers, has been at the forefront of a transformative initiative. In collaboration with the IT department, the HR team recently introduced a cloud-based internal opportunity platform.

This innovative platform empowers employees to volunteer their skills and time for exciting projects that align with their interests and expertise. Thobela and the HR team worked with the IT team to implement this platform, preparing the organization for this major change and driving its successful adoption.

The HR team has not only facilitated a positive change within the organization but has also acquired new skills and tools. These newfound capabilities are now being actively applied to their next venture: digitizing the onboarding process, where virtual reality simulations will play a key role in enhancing the employee onboarding experience.

4. People Advocacy

People Advocacy is about building human-centric organizational cultures that promote productivity and wellbeing, navigating change, and holding the organization to ethical and sustainable standards.

Dimensions to master

Culture and Wellbeing	Shapes inclusive performance culture prioritizing wellbeing
Change Navigation	Builds the change structures and capacity to promote change and resilience
Risk Mitigation & Ethics	Ensures ethical conduct and compliance, and mitigates people risks
Sustainability	Leverages HR to identify opportunities to add value to community and society

HR faces the intricate challenge of balancing improving organizational productivity, building resilience, and fostering a culture of care. That comes with various moral dilemmas.

The changes brought about by evolving technologies, the dissolution of traditional borders in the sense of growing remote work, and escalating social issues will call for thorough ethical considerations. HR will step forward as the champion of risk management and ethics, serving as the conscience of the organization.

Moreover, HR will also embrace a sustainability focus, extending its reach to benefit communities and society. By adding value beyond the corporate walls, HR will play an integral role in driving positive change and contributing to the betterment of the world around us.

People Advocacy in action

In response to the emergence of hybrid work models and a strategic shift toward more retail properties in the past year, Broadacres, a commercial property development organization, has faced its share of challenges. The increased workload and uncertainty have taken a toll on the workforce, resulting in increased levels of fatigue and burnout.

To address these issues, Andy, the HR Manager, has launched “Project X.” This initiative aims to foster a culture of wellbeing, inclusivity, and engagement. Under Andy’s leadership, this program not only seeks to identify necessary changes to boost top-line performance but also places the wellbeing of employees at the core of the company’s culture.

Andy works with the managerial team to rethink working schedules, implements an employee wellbeing support program, and rolls out an educational initiative to assist employees with building coping and resilience skills. He also actively works with champions in each department to become wellness ambassadors and ensure that wellbeing is part of the daily habits of the business.

5. Execution Excellence

Execution Excellence refers to delivering impact through practical problem-solving, engagement with stakeholders, and purposeful execution.

Dimensions to master

Action Orientation	Implements actionable and adaptive plans to achieve results
Problem Solving	Finds practical solutions to navigate and overcome obstacles
Interpersonal Skills	Achieves shared goals using effective interpersonal skills

HR’s success will depend on its commitment to execution excellence, encompassing its work and collaboration approach. HR professionals must become action-oriented, driving initiatives from conception through to completion.

This determined focus on taking concrete actions is essential for HR to showcase value within the organization.

The dynamic and increasingly complex world of work requires HR professionals to become adept problem-solvers, constantly seeking innovative solutions and reallocating resources to meet changing demands. HR must adopt an analytical and systemic mindset to make sense of the evolving environment and steer organizations in the right direction.

Furthermore, HR must excel in collaboration, building networks and relationships that transcend boundaries, including intercultural ones. Effective communication and collaboration across diverse backgrounds and perspectives will be central to HR’s role in fostering an inclusive and globally connected workplace.

Execution Excellence in action

Miriam, the HR Lead for a major manufacturing business, faced a challenge: declining performance. Miriam swiftly assembled a team, reallocating resources to assist her in understanding why performance has been decreasing in specific facilities over the past year. Fortunately, Miriam has built excellent relationships across various business units, and she arranges to meet with the Plant Managers of the struggling facilities.

During these visits, a Plant Manager candidly revealed that morale was plummeting due to a perception that head office prioritized numbers over their efforts. He cited a recent equipment breakdown, where employees had to work extra shifts to restore full manufacturing capacity. However, the only feedback from the head office was that they did not meet their monthly targets.

There have also been changes in the head office leadership team. Many of the plant managers have never met the new leaders and only engaged with them via e-mails or requests for information.

Miriam harnessed this feedback to create an action plan. She collaborated with the head office to raise awareness of the perceptions held by these plants, emphasizing the need for regional engagement.

Working closely with Marketing, she organized a roadshow where senior leaders would visit the plants, gaining firsthand insights into operations and engaging with the workforce. The purpose of these visits was for the new leaders to understand the business, meet the regional plant managers, and agree on a new way of working for the future.

Post the roadshows, Miriam works with the team to implement frequent two-way communication forums for senior leaders to engage with the Plant Managers, listen to their feedback, concerns, and ideas, and collaborate to drive performance in the future.

These Core Competencies will be the standard expectation for all HR professionals to be successful in the future.

As HR careers develop, the levels of proficiency required within these competencies will differ. For example, a Senior HR Executive will require a higher level of business acumen, while an HR Consultant will require a lesser degree of proficiency. However, these five Core Competencies form the baseline for all HR professionals to deliver value in the future.

Specialist HR Competencies

The stem of the ‘T’ in the T-Shaped HR Competency Model clusters six Specialist Competency Domains that incorporate 22 Functional Areas. The relevance of these areas for the HR professional will depend on their role, context, and organization.

For example, a recruiter will require an in-depth understanding of “Awareness and Attraction” related to employer brand and talent acquisition. Still, it would be beneficial to understand total rewards to guide the design of new innovative benefit packages to attract non-traditional talent.

We consider it crucial that all HR professionals have a basic understanding of the different domains with in-depth knowledge in at least one specific cluster.

Specialist Competencies		Functional Areas of application
Awareness and Attraction	Creating awareness and visibility of the employer brand as well as attracting, recruiting, and orientating skilled workers to meet organizational talent needs.	Employer Brand Talent Acquisition Onboarding
People Experience and Culture	Providing positive work experiences that appeal to all employees and create a productive, inclusive work environment where people can belong.	Performance Total Rewards Wellbeing and Health Diversity, Equity, Inclusion and Belonging Employee Experience
Business Transformation	Establishing the right people practices and supporting the business through times of change to ensure long-term sustainability.	Organizational Development Organizational Design Change Management Workforce Planning
Talent Growth	Motivating, developing, and empowering employees to reach their full potential and grow inside the business.	Talent Management Leadership Development Learning and Development
Digital HR	Optimizing HR processes, practices, and platforms to become more automated and data-driven.	People Analytics HR Technology
Operations	Supporting business operations and managing people to ensure the company achieves its strategic goals.	Compensation and Benefits Employee Relations Offboarding Payroll Policies

Leadership Competencies

As the HR profession expands and grows, we expect more HR practitioners to take on leadership responsibilities. While organizations often assume that HR inherently knows how to lead teams, given their focus on leadership development for the business, HR leaders also need to be equipped with the right skills for the future.

As such, we believe that HR leaders will need to develop the following Leadership Competencies, depending on the scope and context of their role.

Context of the leader	Behaviors
Leading Self	Self-awareness of how actions are perceived and how to respond to feedback Leading with empathy towards others and understanding the world from their point of view
Leading Others	Building trust with others and bringing teams together Managing conflict when dealing with others Developing and coaching others to perform
Leading Organizations	Inspiring and motivating others by creating a shared sense of purpose Setting a direction and guiding others to achieve their goals for the future

How HR professionals can develop these competencies

Starting the HR upskilling journey might seem overwhelming at first, not knowing what to prioritize and where to begin. First, HR professionals can assess their current skills using our T-shaped HR assessment, identifying strengths and areas for improvement.

Next, they should explore career opportunities through our HR career map, which guides skill prioritization and helps them understand the various career patterns that drive HR professional development and the skills required to access these opportunities.

It’s important to realize that developing HR competencies isn’t a one-and-done process. Continuous development will be essential for HR professionals to prepare for the future and remain relevant.

At AIHR, our platform guides HR professionals with various development activities aligned to becoming T-shaped.

Last, we believe that this cannot be done alone, and as such, HR professionals need the community around them to support and transition to this future. Working with and learning from others will be essential to drive future HR development and relevance.

How HR teams can develop these competencies

For HR teams, developing these HR competencies will require a targeted approach that ensures that these competencies are aligned with broader strategic capability areas. Depending on the business and HR strategy, organizations will be able to determine which of these domains need to be prioritized to deliver on business strategy.

At AIHR, our HR Navigator process helps HR teams better understand which of these competencies will enable them to execute their strategy and meet business needs. The HR Navigator is an interactive process where our subject matter experts work with HR leaders to design, develop, and build the appropriate learning experiences to develop these competencies within the HR function.

Final words

The future of HR is bright, and to capitalize on the opportunities the future holds, HR has to become T-shaped. The T-Shaped HR Competency Model provides a blueprint for HR professionals to understand the knowledge, skills, and experience they require to be future-fit and have an impact on employees, organizations, and society.

FAQ

What are HR competencies?

HR competencies are the skills, knowledge, abilities, and expertise needed to be proficient at working as an HR professional. These competencies ensure that HR professionals are able to support their organization’s goals and contribute to its success.

What are the core competencies for the HR role?

There are five core HR competencies, which include Business Acumen, Data Literacy, Digital Agility, People Advocacy, and Execution Excellence. These competencies are essential for all HR roles, equipping HR professionals to navigate the rapidly changing world of work.

How can HR professionals develop HR competencies?

Developing HR competencies entails self-assessment of current skills, exploring HR career opportunities to understand various career trajectories, and taking a targeted approach to skill development. Continuous professional development is key to future-proofing your HR skill set.

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Dieter Veldsman

Chief HR Scientist

Dr. Dieter Veldsman is an Organizational Psychologist with 15+ years of experience across the HR value chain and lifecycle, having worked for and consulted with various organizations in EMEA, APAC, and LATAM. He has held the positions of Group Chief People Officer, Organizational Effectiveness Executive, Director of Consulting Solutions, and Chief Research Scientist. He is a regular speaker on the topics of Strategic HR, Future of Work, Employee Experience, and Organizational Development.

Marna van der Merwe

HR Subject Matter Expert

Dr. Marna van der Merwe is an Organizational Psychologist and Subject Matter Expert at AIHR. She has extensive experience in Human Resources, Organizational Effectiveness and Strategic Talent Management. She is a researcher, published author and regular conference speaker in the areas of talent management, experience design, as well as the changing nature of careers. Marna holds a PhD in Organizational Psychology, with a specific focus on talent management and careers in the future of work.

Annelise Pretorius

Assessment Subject Matter Expert

Annelise Pretorius is a registered psychometrist with 10+ years of experience working with psychometric assessments and people data. In her career, Annelise has developed talent acquisition strategies for different companies and worked on people projects, covering topics such as learning and development strategy, career pathing, and sales team performance improvement. As an Assessment SME at AIHR, Annelise is responsible for designing and delivering learning and skills assessments for clients and Academy members.