President's column: April 2008

What Is Hot in HR? Strategy, Business Acumen…and Attitude!

At the requests of some loyal readers, I focus at least one column a year on the topic of what is "hot" in HR. This past year I have worked closely with business leaders in various organizations across multiple industries to find top HR talent. Each industry has its nuances and requires various skill sets and personalities based not only on the industry, but also on the company size, structure and management team styles as well.

With that said, for the last 10+ years, across the board we have heard that for HR to be truly effective within any industry, we must be "strategic." But what does that actually mean? If there is one thing I have learned in the last five years, it is that there are numerous definitions and practical applications of a "strategic HR business partner." For some, this simply means HR is not only doing paperwork, but also solving problems. For others, strategic behavior includes solving employee relations issues, which involves working with both employees and management. Still others consider these actions to be "basic HR" and define "strategic" as a focus on moving from being "reactive" to "proactive" in identifying and solving HR and business issues.

This last view often includes attending department meetings and working closely with management to support their business needs. In some situations, these issues focus predominantly on the performance and career development of staff. Together, HR and "the line" strategically solve HR problems that impact the business.

However, in my experience, there is yet another level of strategic HR management that is often sought out but hard to find, and this leads to my projection of the next significant trend in HR, which is already underway. Certain organizations are looking for someone to sit on the management team who truly understands the business and assesses the impact of any business issue on the people in the organization; someone who has a more-than-proficient business acumen. These companies are not looking for a boilerplate of HR options that have been previously implemented at a person's last company. In fact, "at my last company, we did xyz…" are some of the most frustrating words a non-HR executive can hear.

These organizations are seeking something different-a consultative approach to HR. This means they want someone to listen to the business plan, understand a P&L (Profit & Loss), and assist in projections for growth and to discuss KPIs (Key Performance Indicators) in order to determine success. While this is not new, I hear it more and more from company management. Companies are looking for a business professional with HR expertise-and not the other way around.

The emerging trend is for business leaders to have this appreciation for HR. However, since our last recession, there is an emphasis on removing the "fluff" and operating lean. Even organizations with significant capital and resources rarely look for a "figurehead" in HR to sit in a fancy office. The most common need is to find someone who has a business focus and is considered strategic in this way-but who will also take a very "hands on" approach to getting things done. These organizations are finding ways to push the traditionally administrative tasks elsewhere-to outsource, create a service center or to transition to another department like Finance-to allow HR time to sit with the business and respond to the issues beyond the basic administration of payroll, benefits, salary changes and promotions.

So how does one keep up with this latest trend? In part, it depends on attitude. You must be flexible, able to multi-task and have truly inherent consulting skills. You must be able to listen, take information in and formulate ideas and suggestions. To present these solutions, strong business acumen is required. Many managers that HR people support have documentation books and/or reports on their business, specifying key terms critical to their area and industry. You can also learn much in certificate courses, Masters and MBA programs and, in some cases, from regularly reading the Wall Street Journal and Business Section of the New York Times.

So, some of what it means to be strategic is learned and some is taught. This is not to say every "successful" HR person needs to operate in this manner. It does mean that you need to self-reflect, determine who you are and assess the needs of the management team you have and those you have worked for in the past. And determine who and what you want to be-there is a place out there for everyone.

Until next time...