HR Business Partner: All You Need To Know About the Role

The HR Business Partner is a strategic liaison between HR and the business. These senior HR professionals have a deep understanding of the business and ensure that HR helps the business make an impact.

The HR Business Partner role is constantly evolving, driven by emerging trends in the world of work and changes in the job market. These changes reflect the shift towards strategic HR management, data-driven decision-making, employee experience, talent management, and effective collaboration. Hence, HRBPs must learn and develop different skills to meet demands and help organizations succeed.

In this article, we will discuss the HRBP role and its evolution, what makes a good business partner, and how HR Business Partners can maximize their contribution to the business.

Want to learn the skills you need to truly become a strategic partner to your business? Check out our HR Business Partner 2.0 Certificate Program.

Contents
What is an HR Business Partner?
Future-ready HR business partner role and responsibilities
HR Business Partner skills and competencies
HR Business Partner metrics
How to become an HR Business Partner
HR Business Partner vs. HR Manager
HR Business Partner vs. HR Generalist
HR Business Partner salary
FAQ

What is an HR Business Partner?

The HR Business Partner (HRBP) plays a vital role in connecting Human Resources with the business side of a company to achieve its goals. They are responsible for adding value to the organization and helping the business make decisions, especially during times of change. They primarily work with managers to ensure that HR activities align with their needs.

Line managers understand the company well, so HRBP works closely with them to set priorities and make a significant impact. Human Resources Business Partners are usually found in larger companies and may oversee many employees. Generally, the more employees they oversee, the more critical and strategic their role is.

HRBPs have different responsibilities in a company. Gartner identified four roles that show how versatile they are: 

• Operations Manager – Measures and monitors existing policies and procedures
• Emergency Responder – Provides immediate fixes to acute emergencies
• Strategic Partner – Develops and implements enterprise-wide strategies to address big challenges
• Employee Mediator – Finds solutions to individual employee issues

While the HRBP should be a strategic partner and businesses should see them as such, this is not always the case. 57% of C-suite execs view HR as a primarily administrative function. They’re seen as focusing too much on day-to-day tasks and failing to consider the bigger picture and the company’s needs.

This shouldn’t be the case. Next to being an administrative expert and a champion for employees, HR Business Partner should also be a change agent and a strategic partner.

The HR business partner as a role and as a capability

There is a common misunderstanding between the HR Business Partner as a role and as a capability.

So far, we’ve talked about the HRBP as a job role. This is the person with the job title of Human Resource Business Partner, who is the strategic liaison between HR and the business.

However, while not everyone in HR is a business partner, everyone in HR should be ‘business partnering.’ It means that every HR professional should deeply understand the business and try to shape HR policies in a way that helps enable the company.

For example, a learning & development specialist deeply understands how people learn and can change their behaviors. Undoubtedly, they would be dysfunctional if they did not understand the business that they were in. When they know the company, they make better choices, are better at aligning L&D practices with what the industry is looking for, and will make more impact.

While in this article we focus mainly on the HRBP as a job role, learning about the HRBP’s strategic responsibilities and essential competencies is useful for any HR professional wanting to develop business partnering capabilities and is determined to help their business attain its targets.

Future-ready HR Business Partner role and responsibilities

A senior HR director shared a story about two different types of business partners. The first gets up in the morning, comes to work, sits down in a manager’s office with a notebook, and asks, “How can I help you today?” The manager starts complaining, and the business partner starts writing and gets a list of tasks. This is an administrative HR Business Partner.

The second kind of HRBP is much rarer. Before they talk to the manager, they look at the data from turnover to learning and development rates to see where the manager needs help.

This same business partner looks at the key performance indicators – how well is this manager performing? This HRBP thinks, how can I help this manager succeed? They write their notes and go into the meeting with actionable plans that are KPI-driven.

The following model shows three different levels of HR Business Partners within the HR organization. It’s an adaption of a paper by Andrew Lambert (2009), co-founder of the Corporate Research Forum.

The role of an HRBP has to become more strategic to help organizations increase their productivity, profitability, and competitiveness.

So what should the HR Business Partner responsibilities look like looking forward?

1. Preparing for the future of work and Human Resources management

The business world doesn’t stand still, and neither does the HRBP.

Mikaela Kiner from the HR consulting company Reverb pinpoints several challenges HRBPs need to address to future-proof their organizations:

• How to maintain culture, engagement, and connection in distributed organizations.
• Helping leaders determine the best path forward for their teams whether it’s in person, virtual, or hybrid.
• Determining the role of generative AI in HR and how it can be used to automate tasks and make work more efficient. Today, many HR teams are running lean due to the economy, so the pressure is on to find creative ways to do more with less.

Retooling business culture to fit a digital workforce, reskilling, upskilling, technology adaptation, strategic workforce planning, and improving the employee experience will play an essential role in equipping the workforce to meet future challenges and demands.

This involves identifying training needs, aligning training programs with business goals, planning for the right size and type of workforce, and developing talented individuals for key roles.

2. Being a coach and a consultant 

An HR Business Partner must understand how current and future challenges impact the people in their organization. This enables them to provide valuable advice and coaching to key stakeholders.

However, it’s important to note that the HRBP’s role is to serve as an advisor and consultant, not to take over all responsibilities. They empower organizational leaders to handle people-related matters effectively.

Some typical responsibilities of an HRBP may include:

• Conducting regular meetings with business leaders, offering HR advice when needed 
• Staying updated on employment laws and regulations and providing guidance to ensure compliance
• Assisting in the development and implementation of HR processes and policies

3. Putting business acumen to work

Business acumen is an indispensable competency for every HR professional, especially for HRBPs. It represents the keenness and quickness in understanding and dealing with a business risk or opportunity in a way that leads to a good outcome. The HRBP connects business issues to HR activities and outcomes and helps the organization tackle these challenges.

Correspondingly, HR Business Partners know their organization’s sources of competitive advantage, market value, competitors, unique selling points, and market share. They understand the marketplace and the role of technology. Furthermore, HRBPs possess a deep understanding of all relevant stakeholders, which enables them to contribute to their organization’s success.

4. Building a competitive organization

An HR Business Partner plays a crucial role in helping their organization succeed in two areas: winning clients and attracting and retaining top talent. To stay competitive in the market, HRBPs have to focus on:

• Assisting the business in strategizing, training, and adapting to create the best product or service. This involves guiding line managers on performance management, helping them navigate organizational and people-related issues, and optimizing the organizational structure to enhance productivity and performance.

• Ensuring that the business can attract and retain top talent. They collaborate with other HR team members to implement innovative and inclusive recruitment strategies, develop compensation and benefits plans that are future-proof, and implement reward and recognition programs that improve both financial results and employee engagement.

5. Empowering leaders

HRBPs “…work proactively with business leaders on various workforce challenges and strategies.” This involves providing leaders with the resources, knowledge, and skills they need to effectively manage their teams, resulting in a stronger, more autonomous management structure.

The goal here is to create an environment where leaders are adequately equipped to handle most day-to-day workforce issues on their own. HR then becomes a strategic partner, focusing on broader organizational challenges and long-term people strategies rather than getting tied down with routine issues.

When HRBPs help leaders navigate the complexities of people management, it contributes to a strong organizational culture and improved organizational effectiveness.

6. Using data to influence decisions 

Data is crucial to know if you are on the right track. Without it, you are guessing at decisions. An HRBP uses data strategically and can track KPIs and use them to drive performance and achieve objectives. 

This includes a robust contextual understanding of the business as well as the local and cultural issues relevant to the regions your organization is active in. For example, when the business is looking to open a production facility in Indonesia, you need to consider different data than when you have an attrition problem in your North American facilities.

7. Strengthening company culture and employee experience 

A key responsibility of future-ready HRBPs is to focus on people and how cultural transformation can help achieve organizational goals. They also work towards continuously improving the employee experience, which is essential for business success. 

Specific tasks that may be required of HRBPs include:

• Providing advice and suggestions for cultural transformation initiatives to shape a strong organizational culture 
• Implementing HR interventions related to employee wellness, DEIB, and talent management
• Collaborating with management and personnel to resolve conflicts, promote positive employee relations, maintain a positive work environment, boost morale, and reduce turnover 

Jessie Lambert, Director of HR at Mistplay explains how an HRBP helped revamp the employee onbaording experience. “In a previous role at a fast-growing startup, we recognized that turnover among new hires was increasing, and feedback indicated that new employees were feeling overwhelmed,” says Lambert.

“Recognizing that a negative onboarding experience might be a factor, the HR team decided to completely overhaul and revamp the onboarding process. The HRBP collaborated with various teams to develop an in-depth onboarding program that included department-specific training, mentoring programs, and an introduction to the company’s culture. To ensure consistent implementation, the HRBP also developed an onboarding checklist and trained managers on how to effectively onboard new hires.

The new onboarding program significantly improved new hire retention rates and increased job satisfaction among new employees. This not only saved costs associated with turnover, but also boosted the company’s reputation as a great place to work.”

It’s important to note that the responsibilities of HRBPs can vary across different levels. Senior HRBPs, like Vice Presidents of HR or senior HR managers, usually have a more strategic role and lead business conversations. They focus on strategic planning, coaching, and consulting with leadership on HR matters.

Mid-level HRBPs contribute to business discussions and assist senior HRBPs in coaching, supporting line managers with people-related issues, and participating in developing HR strategies.

HR Business Partner skills and competencies

An HRBP needs many skills, but four are central to effectiveness in the role:

• Data literacy
• Business acumen
• Digital agility
• People advocacy

When people think of HR, they focus more on the administrative side and less on the data side. However, that’s the complete opposite of an HRBP.

Here’s how those skills play out in the role of HRBP:

Data literacy

The HRBP must be skilled in data collection, analysis, and interpretation. Gone are the days when HR could react based on gut feelings. Today, HRBP needs to be able to read a dashboard and reports with complex data and act on that data.

For example, HRBP needs to collect and interpret usable data when creating effective guidelines for performance reviews.

Here are the HR metrics every HRBP must know:

Business acumen

Business acumen is not just about understanding finance principles but also risk, reward, and business outcomes. If an HR Business Partner for a printer manufacturer doesn’t understand the printer business, they won’t be successful in the role. In other words, they need to be business savvy.

Sometimes, a strong HRBP will have worked in line management and then received intensive HR training to take over the HRBP role. While most HR skills are transferable from industry to industry, an HRBP needs industry-specific understanding to be effective.

Digital agility 

This skill refers to HRBP’s ability to leverage technology to increase efficiency and drive business results. Adopting the right technology improves digital employee experience, which leads to increased engagement and communication.

On the other hand, adopting unsuitable technology or misusing it can increase workloads, hinder productivity, and create disgruntled, frustrated employees.

According to Aditya Roy, Senior Consulting Manager at Cognizant, the HR tech ecosystem is still not unified, and this is where HRBPs can bring tremendous value. “The onus to drive the change has been shifted to modern HRBPs, and they are expected to be the driver of the change that tech should bring,” notes Roy.

People advocacy

Advocating for their employees and balancing their needs with business objectives is a priority for any HR professional. Companies cannot survive and succeed without good people who are treated fairly and rewarded for their good work.

An HRBP contributes to creating an organizational culture that empowers people to do their best work. They need to advocate for employees and push back when needed. Doing this properly protects the business from lawsuits, unhappy employees, and unwanted turnover.

Other HRBP skills and competencies

• Excellent stakeholder management. In order to get things done in business, HR Business Partners need to understand a little bit of the political landscape within the organization. As they’re an intermediary between various groups like employees, managers, and senior leaders, they need to be able to navigate complex relationships, build consensus, negotiate, and manage expectations. When there’s consensus on challenges, it is much easier to come up with HR interventions that are supported by the business.
• Strong communication and presentation skills. The HRBP needs excellent communication and presentation skills to communicate policies, strategies, and changes across various levels of an organization. Being able to clearly articulate ideas, present complex information effectively, and engage in meaningful dialogues ensures alignment and facilitates effective decision-making within the business.
• Change management. In line with stakeholder management and communication skills, the HRBP should be effective in dealing with resistance. Once opportunities for HR interventions are identified, HR and the business should work closely together to communicate change, address resistance, and guarantee successful implementation.
• Talent management. HR Business Partners must be good at talent management to identify, cultivate, and strategically deploy talent and support the organization’s staffing needs.
• Team collaboration. HRBPs need to be able to work effectively with other HR professionals and teams to ensure consistent and effective delivery of HR programs and services.

HR Business Partner metrics

HR Business Partner metrics help measure how successful HRBPs are in their roles. The HRBP role is not easy to quantify due to a wide range of responsibilities and areas of impact.

Setting SMART goals for HR Business Partners enables them to prioritize their tasks, track progress, and drive success in the HR function. These goals should be tailored to the specific needs and objectives of the organization, as well as the HR Business Partner’s role and responsibilities.

Let’s have a look at a couple of HR Business Partner metrics examples: 

1. eNPS

HRBPs can measure employee engagement using an employee net promoter score (eNPS) survey. It provides insights into employees’ satisfaction levels and whether they would recommend their company as a good place to work.

In the survey, employees are asked: “How likely are you to recommend our company as a place to work?” They respond on a scale of 0 to 10, with 0 being very unlikely and 10 being very likely. The scores are categorized as follows:

• 0-6: Detractors – Employees who feel negative and are unlikely to promote the organization.
• 7-8: Passives – Employees who are neutral and neither promote nor discourage the organization.
• 9-10: Promoters – Employees who enthusiastically promote the organization as a workplace.

To calculate the eNPS score, subtract the percentage of detractors from the percentage of promoters.

Examples of employee engagement SMART goals for HRBP could be: 

• Implement a quarterly employee engagement survey to measure the current level of engagement by the end of the year
• Increase overall employee engagement score by 10% within the next six months 
• Develop and execute two targeted initiatives based on survey results to improve engagement 

2. Diversity, Equity, Inclusion, and Belonging metrics

Diversity, Equity, Inclusion, and Belonging (DEIB) metrics are a way to measure how effective HRBPs are in promoting fairness and equity in the workplace. These metrics help employers improve diversity and inclusion initiatives by identifying areas of improvement.

When quantifying DEIB, some factors to consider are the representation of different groups and pay equity. For representation, you can calculate the percentage of employees from specific groups (e.g., women, BIPOC, LGBTQ+, employees with disabilities) using the formula:

(Number of employees in category / Total number of employees) x 100

Then you can compare this to the representation of that group within general population.

To calculate the pay gap between men and women, you can use the following formula:

((Average hourly rate for men – Average hourly rate for women) / Average hourly rate for men) x 100

Having diverse representation and a small pay gap indicates that the company values DEIB and adds value to the organization.

Here are examples of DEIB goals: 

• In Q4, conduct a diversity and inclusion audit to assess the current state of representation and inclusion within the organization 
• Increase representation of underrepresented groups by 5% in leadership positions within two years 
• Implement a trial mentorship program for women with 5 participants within the next six months

3. Employee retention rates

HRBPs play a role in activities that affect employees throughout their time with the company. Their work can directly impact retention rates. High retention rates indicate their efforts are successful, but low rates may require a strategy review. Therefore, retention rates can be used to assess the effectiveness of HR Business Partners.

The employee retention rate shows the percentage of employees who stayed with the company for a certain period, usually a year. It helps organizations understand how long employees stay and when they tend to leave.

The formula for retention rate is to subtract the number of employees who left the company from the total employee count, then divide that by the total employee count and multiply by 100.

For example, if the company has 300 employees and 25 people resign, the retention rate is 91.67%.

Examples of employee retention goals can be:

• Within the next quarter, analyze historical turnover data to identify 3 key reasons why employees are leaving
• Based on the results of the analysis, develop and implement a targeted retention strategy in the next 12 months
• Increase retention rate by 5% in the next year 

Nancy Stewart, HR Leadership Coach at TalentAlchemists.com, shares an example of how an HRBP managed to decrease employee turnover in a company’s Sales department.

“A client’s Sales was struggling with high turnover in an entry-level role. The HRBP and Department Head met to review relevant data. Metrics indicated only 20% of Sales Reps lasted beyond 90 days. The HRBP partnered with the team to revamp the interview process, which included rewriting the description, adding a real-time shadow session for candidates, and revising the interview team and questions asked.

The team went from a 120% turnover rate to below 15% in 9 months.”

How to become an HR Business Partner

HR Business Partner role is both challenging and rewarding, given the strategic nature of this role within modern organizations. Let’s explore tips that can guide you towards a successful career as an HR Business Partner.

• Develop a solid foundation of HR knowledge and skills – HRBPs need to have a thorough understanding of different HR functions, such as talent acquisition, employee relations, and compensation and benefits. This knowledge and skills equip you with the ability to understand the unique challenges each function brings and how they interplay to build a productive, engaged workforce.
• Work on your business acumen – Expand your understanding of business operations, strategy, and financials. Familiarize yourself with key business concepts to effectively align HR practices with organizational goals. That way, you’re prepared to assess the impact of external business environments and how they influence internal decisions.
• Get an HR Business Partner certification – That will help you improve your knowledge and skills but also provide you with relevant credentials for when you’re applying for jobs. Certifications showcase your dedication to the profession and your readiness to undertake the responsibilities associated with the role.
• Improve your leadership competencies – HR business partners are pivotal in guiding and advising managers. Enhance your leadership skills, including coaching, mentoring, and influencing, so that you can effectively inspire and motivate others. These competencies help you guide leaders through tough decisions and create a more collaborative, engaged work environment.
• Focus on key soft skills – In addition to HR-specific skills and business acumen, soft skills like strategic thinking, problem-solving, and interpersonal communication are paramount. These skills enable HRBPs to build and maintain strong relationships and successfully navigate complex challenges.
• Foster a data-driven mindset – In the era of digital transformation, being comfortable with people analytics and metrics is essential. These tools help you identify patterns and trends that can inform future strategies. Embrace the data-driven approach to make informed decisions, demonstrate the value of HR initiatives, and drive business outcomes.
• Network and seek mentorship – Build relationships with HR professionals and seek mentorship from experienced HRBPs. Networking can provide valuable insights, career opportunities, and guidance as you navigate your path to becoming an HR business partner.
• Prepare for your interviews – As you ready yourself to step into the role of an HRBP, make sure to review and prepare for common HR Business Partner interview questions. Familiarizing yourself with these questions will help you understand the expectations of the role better and articulate your skills, experiences, and vision more effectively.

HR Business career path 

The HR Business Partner career path doesn’t have to be a straight vertical line. It’s more like a collection of experiences that help HR professionals develop their skills, knowledge, and talents.

By understanding the requirements and possibilities, HR professionals can focus on building essential skills and competencies they need to achieve their career goals.

There are the three primary HRBP career path directions you can consider: 

Strategic HR advisor

HRBPs must gain skills in business strategy, change management, and stakeholder relations. Future possible roles for them would be HR Manager, HR Director, or Head of HR. 

HR Specialist 

HRBPs must acquire design thinking, process mapping, and organizational diagnosis knowledge. Potential roles for them would be L&D Manager, DEIB Manager, Talent Manager, or OD Head. 

HR Technologist 

HRBPs must acquire competence in HR digitalization, workflow management, and operational excellence. Possible positions for them would be HR Operations Manager, HR Analyst, or HR Scrum Manager.

HR Business Partner vs. HR Manager

Both HR Business Partner and HR Manager are usually on the senior side of the HR population. Effective HR Business Partners have 10+ years of experience in the field, and this usually also holds true for the HR Managers.

An HR Manager oversees an HR department, managing recruiting, benefits, and payroll administration. They also have people that directly report to them. Meanwhile, HRBPs are considered individual contributors who directly support the business or a business function. They operate as advisors and consultants and are focused on the strategic side of the HR function. 

There are also cases of overlap between the two positions, and some businesses use the terms interchangeably. Many small organizations have one or two HR managers who manage every aspect of HR, from the administrative to the strategic. On the other hand, HR Business Partners often operate on a senior level as they work most closely with management and leadership.

An HR Manager is likely to guide an employee on how to interact with their boss, while an HRBP is likely to coach a Vice President on how to interact with their team as a whole.

HR Business Partner vs. HR Generalist

HR Business Partners have a strategic focus, work closely with business leaders, and have a broader organizational scope. They contribute to the strategic direction of the organization and provide guidance on people-related matters. They also play a key role in talent management, including workforce planning, succession planning, leadership development, and employee engagement initiatives.

HR Generalists, on the other hand, have an operational focus, handle day-to-day HR activities, and support employees and managers within a specific area. They provide guidance on HR processes, address employee concerns, and facilitate effective communication between employees and management.

HRBPs often focus on a specific department, business unit, or geographic location, offering localized perspective and handling HR matters specific to their assigned business area.

“With direct insight into how a specific department works, HRBPs have a great opportunity to drive impactful change by asking intentional questions to make better decisions as a business evolves and grows. They bring this unique insight into driving impactful change that aligns people strategy with business goals,” points out Eric Mochnacz, Senior HR Consultant at Red Clover HR.

HR Business Partner salary

Payscale estimates that the average HR Business Partner salary in the United States is $78,931 per year, with the typical range falling between $59,000 and $108,000. The salary depends on years of work experience, education, certifications, industry, and additional skills. 

According to Salary.com, the average starting HR Business Partner salary in the United States is around $66,300.

The average pay also depends on location. Payscale states that the annual salary of an HR Business Partner in Chicago is $83,135 annually, while their New York counterparts receive $95,536 per year.

A final word

The HR Business Partner role and responsibilities are becoming increasingly strategic, as we’re in the digital age and changes happen very quickly. A competent HR business partner can alleviate the stress that often falls on leadership teams by thinking strategically, planning for the future, and helping to integrate technology into the workflow. 

An HR Business Partner must continuously learn and keep abreast of new developments in HR and within the business sector. By doing this, the HRBPs help their organizations become more successful. In a word, as a people-savvy and business-savvy HRBP, you can have a strong positive impact on your business.

FAQ

Erik van Vulpen

Erik van Vulpen is the founder and Dean of AIHR. He is an expert in shaping modern HR practices by bringing technological innovations into the HR context. He receives global recognition as an HR thought leader and regularly speaks on topics like People Analytics, Digital HR, and the Future of Work.

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