The Great Reset
The Great ResetHow High-Performing OrganizationsBuild HR Business Partnerships toThrive in the Resilience Economy
TABLE OF CONTENTSExecutive Summary3Why Now is the Best Time for a Strategic Reset of the HRBusiness Partnership4The Practices of High-Performing Organizations5Solve Three Critical Challenges to Reset HR-BusinessPartnerships8Strategic HR Knowledge, Skills, and Abilities10Consultative and Collaborative Relationships16Effective Use of Data and Tools23Reset HR-Business Partnerships to Build a High-PerformingOrganization29About the Research30Survey Respondent Demographics31Endnotes32About the Research Partners35The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 2
EXECUTIVESUMMARYThe unfolding of recent events, including the economic and socialchanges wrought by the global pandemic, has amplified the importanceand necessity of the HR function. A robust set of HR practices cansupport employee productivity and engagement, assist the workforcein meeting regulatory and safety obligations, all while helping to deliverthe organization’s strategy, even in times of rapid change. HR alone,however, can’t produce these outcomes for an organization. It can onlybe responsive to the emerging needs of the business by working moreclosely with it.We are living in a new,‘resilience economy’ in whichuncertainty has become thenorm, and change is constant.This requires a new levelof agility from both HRpractitioners and peoplemanagers.For this reason, effective HR-business partnerships are moreindispensable than ever before. But building and maintaining closecollaborative relationships between HR professionals and the peoplemanagers with whom they work takes effort, and not all are successful.Fewer than a quarter of all organizations strongly agree that their HRpractitioners and people managers work well together. Earlier researchfrom HCI has offered insight into the most critical factors shaping thesepartnerships and provided steps for increasing the credibility of HRprofessionals with their internal partners.1 In the current environment,however, gaining credibility, however, is only part of what’s truly needed.We are living in a new, ‘resilience economy’ in which uncertainty hasbecome the norm, and change is constant. This requires a new level ofagility from both HR practitioners and the people managers with whomthey work to anticipate, rather than simply react to fluctuating needsof the business and its people. High value partnerships that set clearpriorities through continuous communication and collaboration are nowindispensable for sustaining organizations. It’s time to reset the HRbusiness partnership to allow the organization to thrive through change.UKG (Ultimate Kronos Group) and HCI have partnered to uncover thetactics that create successful partnerships. By studying the contrasts inpractices between high-performing organizations and their peers, thisresearch uncovers three key challenges to building high-value strategicHR-business partnerships, and offers their solutions:The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 3
Close confidence and credibility gaps by pursuing opportunities togrow your strategic HR capabilities.Build more collaborative relationships by advising and supportingthe needs of your people managers while helping them to developtheir HR acumen.Make effective use of data by identifying the tools and measuresthat are right for your organization, and that enable the collection,analysis, and communication of data.WHY NOW IS THE BEST TIME FOR ASTRATEGIC RESET OF THE HR-BUSINESSPARTNERSHIPWhen the pandemic first arrived, many were uncertain about howit would affect their organizations and the lives of their people.Massive disruptions to the economy and the social and psychologicalimpacts of social distancing were yet to unfold. In a matter of weeks,businesses and organizations across every industry were facing anexistential threat. Radical shifts in the marketplace prompted the abrupttransformation of the entire workforce.For most businesses, updating employee policies to include maskrequirements, and keeping headcounts in line with changing revenuewere only the beginning of a long list of difficulties. Facilitating remotework, addressing new government laws and relief measures, enablingnew safety procedures, and helping employees cope with change and thesymptoms of burnout all climbed to the top of organizational priorities.To effectively overcome these challenges, every organization needsstrong partnerships between the HR function and the business tosynchronize their response to rapidly evolving conditions. For thisreason, the capabilities of HR leaders and their impact are drawingrenewed attention.2, 3 But the call for HR to work more strategicallyand collaboratively with the business went out long before the currentcrisis. For more than two decades, HR has been encouraged to domore to create value by working more closely with other businessfunctions. Unfortunately, this has proven easier said than done. ManyHR professionals still struggle for legitimacy with people managers.4Similarly, limitations on sharing or redistributing the work that has beenThe Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 4
traditionally the provenience of HR has prevented HR roles from morefully engaging the business.5And yet, those organizations that have strong HR capabilities andembed HR expertise across business units have long held a competitiveadvantage.6 This has never been more true than right now. Thrivingin this new resilience economy requires a strategic reset of HRbusiness partnerships that can optimize the agility of the workforce andharmonize the needs of the business with the capabilities of its people.Advice for better business partnering has often remained high level andlacking in specifics. So, what are the practical steps your organizationcan take to modernize its HR-business partnerships? HCI and UKGstudied high-performing organizations to understand what works foraddressing barriers to success. We identified three key challenges,and their solutions, that can reset HR-business partnerships at yourorganization at a time when it’s needed most.THE PRACTICES OF HIGH-PERFORMINGORGANIZATIONSOrganizations that report more favorable talent and business outcomesalso report stronger HR-business partnerships. Overall, only 1 in 5 (22%)strongly agree that HR practitioners and people managers work welltogether at their organization. However, those with higher scores onHCI’s index for high-performing organizations (HPOs), are significantlymore likely to view these partnerships as effective.7The HPO index is based on 14 self-reported outcome measures usedto evaluate the relative strength and weakness of organizationsrepresented in the survey sample. The index includes seven talentindicators (investments in training, internal mobility, employeeengagement, diversity and inclusion, quality of hire, retention, andleadership bench strength) and seven critical business dimensions(customer satisfaction, regulatory compliance, talent attraction,innovation, profitability, shareholder value, and productivity). Scoresfrom these items are aggregated to create a composite score.Those scoring 52 or greater on this inventory are identified as highperforming organizations (HPOs). In this study, 26% of the sampleare scored as HPOs. Although HPO status had no relationship withThe Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 5
demographic variables including industry, size of the organization, orthe functional area or seniority of the survey respondent, their practicesfor building high-value, strategic HR-business partnerships were clearlydifferentiated from those at other organizations.It isn’t just that HPOs have a more positive view of HR-businesspartnerships, it’s that the HR professionals who work for theseorganizations also indicate higher confidence in their abilities (Figure 1).8These abilities underpin four strategic HR capabilities that support andenhance HR-business partnerships.9 HR professionals must understandthe business, consult and collaborate well with business leaders, usedata to inform their work, and apply current and best practices in talentmanagement to create strategy-based solutions.HR professionals at HPOs clearly know the business. They are much moreconfident in their knowledge of both the business and talent strategies fortheir organization, and they are competent in their efforts to explain theseto employees. These HR professionals are similarly confident in theirunderstanding of HR best practices, their ability to identify key data toanswer important questions, and their outreach to internal stakeholders,to solve for problems and create targeted solutions.The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 6
FIGURE 1Significant differences only. How confident are you in your ability todo the following at work? (Very and Extremely confident.)All ain your organization’s vision,business strategy, and goals to allemployees56%Know how the talent strategydrives the strategic goals of theorganizationExplain my organization’s top threestrategic prioritiesConsult with others to determinethe root causes of our business andtalent challenges71%52%71%51%Build trust by responding tostakeholder needs and maintainingopen communicationIdentify key data and expertise toanswer important organizationalquestions73%36%Use my understanding of bestpractices in business and talentmanagement to set prioritiesUse credibility with business leadersand colleagues to gain influence andbuy-in for talent initiatives76%39%Create plans and initiatives tomanage changeIdentify what sets your organization’sstrategy and financial goals apartfrom our industry competitors84%71%52%60%33%37%56%53%31%41%51%The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 7
SOLVE THREE CRITICAL CHALLENGES TORESET HR-BUSINESS PARTNERSHIPSHR professionals at high-performing organizations have found a path tobecoming more confident and capable in their role, and for contributingto more effective HR-business partnerships. But their success inthese efforts shouldn’t imply that they weren’t met with challenges.When asked about the things that stand in the way of developing andsustaining these partnerships, respondents from both HPO and otherorganizations provided a wide range of answers (Figure 2).Conflicting priorities between HR and people managers tops their listof difficulties (35%), but the relatively even distribution of the remainingresponses shows no specific pattern. Whether they struggle with alack tools and technology (29%), inadequate access to professionaldevelopment (24%), or a lack of buy-in from senior leaders for HRinitiatives (23%), few respondents report the same combinationof issues, suggesting that the barriers to effective HR-businesspartnerships are specific to each organization.Despite this, however, there are still some overarching themes that helppoint the way forward. Each of these problems relates to three criticalchallenges that need to be solved to successfully reset HR-businesspartnerships:Gaps in strategic HR knowledge, skills, and abilitiesWeak relationships and poor collaborationIneffective use of data and toolsKey practices at high-performing organizations indicate the action stepsin each of these areas that HR professionals and people managers alikecan apply in their own businesses.The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 8
FIGURE 2What are the current, top challenges for developing and sustainingHR and business partnerships at your organization? (Select no morethan five.)35%Conflicting prioritiesLack of technological infrastructureto support internal processes andsharing of information29%28%Lack of a clearly defined strategy24%Lack of professional developmentInsufficient staffing23%Lack of senior leader buy-in for HRinitiatives23%Role ambiguity23%Inconsistent efforts to monitorprogress on shared goals23%Ambiguous business processes19%Conflicting operational processes19%Lack of manager buy-in for HRinitiatives19%Critical lapses in HR knowledgeamong managers17%Inadequate project or timemanagement16%Lack of employee buy-in aroundorganizational directives15%Interpersonal dashes12%Lack of HR buy-in for strategicbusiness initiatives12%HR and people managers talk pasteach other (no shared terminologiesor concepts)10%Critical lapses in businessknowledge among HR practitioners9%The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 9
“There are still credibilityissues within some HRdepartments. What’s the rootcause for that? Unfortunately,we have either not beenhonest with ourselves with thefact that we have a knowledgegap, or, we’ve made adecision not to address it.”—Dan Reece, Director ofWorkforce Planning and Analytics,U.S. Department of Housing andUrban DevelopmentStrategic HR Knowledge, Skills, and AbilitiesThe Challenge—Gaps in Strategic HR Knowledge,Skills, and AbilitiesWhen gaps are exposed in the knowledge, skills, or abilities of HRprofessionals, these can undermine their potential to deliver valuefor their organization and threaten their credibility with the peoplemanagers and business leaders with whom they work. Buildingback this credibility begins with learning how the organization doesbusiness. HR professionals need a complete understanding of how theorganization fulfills its mission or makes its money to align HR solutionswith business problems.But these solutions also need to be built on a solid foundation of HRexpertise. Not only do HR professional require an up-to-date knowledgeof trends in evidence-based HR practices, they need to maintain skillsthat help them identify the right measures for assessing problemsand monitoring progress, and for communicating clearly with internalstakeholders using the lexicon of business and finance.“We need to work withour people managers sothat when a position, anopportunity, or a problemcomes their way and they’rethinking, ‘Who do I want inthe room to help solve this?’Among the first they need toinvite is HR.”—Casey Stevenson, Director ofTalent Management, MasergyOnly a thin segment of survey respondents indicated that lapses inbusiness acumen are among the most important challenges for HRat their organization (9%). Similarly, a few report disconnects in thelanguage or concepts used by HR and people managers in theirconversations. But taken together with other data points, these aresigns of persistent barriers to building strategic HR knowledge, skills,and abilities (Figure 3).A quarter of all survey respondents indicate they lack the professionaldevelopment necessary for sustaining HR-business partnerships attheir organizations. Insufficient staffing and inadequate project or timemanagement only exacerbate these problems, adding to the opportunitycosts of acquiring and accelerating strategic HR capabilities.The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 10
FIGURE 3What are the current, top challenges for developing and sustainingHR and business partnerships at your organization? (Select no morethan five.)24%Lack of professional development23%Insufficient staffingInadequate project or timemanagement15%HR and people managers talk pasteach other (no shared terminologiesor concepts)10%Critical lapses in businessknowledge among HR practitioners9%High-performing organizations are doing more to address thesechallenges, and as a result, their HR function holds greater credibility withbusiness leaders. Not only are HR professionals at these organizationsmore likely to have an understanding of the operational best practicesthat are expected by the people managers they support, but thesepeople managers, in turn, are more likely to consult HR to supplyanswers or information about their organization’s talent strategy.10FIGURE 4Please rate your level of agreement with the following. (Percent oftotal responses which “Somewhat agree” and “Strongly agree” withbreakdown by HPO status.)High-Performing OrgsAll Other OrgsHigh-Performing OrgsAll Other Orgs93%76%HR has a basicunderstanding of70% operational best practicesthat are expected ofthe managers theysupport.76%73%People managersimmediately ask to meetwith HR when there arequestions about thetalent strategy.63%The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 11
“It’s very difficult for anHR professional to be aneffective partner if you don’thave emotional intelligenceor empathy. If you don’t havethe ability to be flexible andto accommodate the variedconversational or interactivestyles of the individuals you’reworking with, then you’re inthe wrong line of work.”—Dan Reece, Director ofWorkforce Planning and Analytics,U.S. Department of Housing andUrban DevelopmentThe Solution—Grow Strategic HR CapabilitiesHR professionals already know what they need in order to do theirjobs well and improve their internal partnerships. What they often lackare the opportunities they need to grow their strategic HR capabilities.When asked which knowledge, skills, and abilities are most needed byHR to be considered a successful partner to the business, respondentswere clear on their priorities (Figure 5).A large majority of HR professionals indicate their attention to people andrelationships is paramount, stressing emotional and professional skillsthat assist in their communication efforts (70%). Setting the right tonein conversations between HR and business managers is important, butultimately, it’s about communicating the right message. Communicationbecomes influence when the critical analysis of data, business andfinancial acumen support the conversation. Pursuing professionaldevelopment across each of these areas to maintain a holistic skill setand a better understanding of both business and talent needs is essentialfor resetting and modernizing HR-business partnerships.FIGURE 5How important do you feel the following knowledge, skills, andabilities are for HR to be considered a successful partner to thebusiness? (Extremely Important.)Emotional intelligenceand professional skills70%66%Consultation and collaboration skillsCoaching and team developmentabilities56%52%Employment and labor lawBusiness and financial acumen44%Project and changemanagement skills44%Maintaining knowledge of trendsand evidence-based practices in HR43%30%Data analytics skillsMarketing and communication skills22%The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 12
High-performing organizations are more likely to emphasize theimportance of skills that extend HR’s influence throughout theorganization (Figure 6).11 They place greater significance not only onconsultation and collaboration skills, but also on coaching skills thatenable them to act as trusted advisors to the people managers withwhom they work. Gaining this trust is vital and allows HR at theseorganizations to help guide managers through workforce issues as theyarise, while also building plans for their future workforce needs.Well-constructed talent plans limit reactive decisions on the partof either HR or managers, but these often require monitoring andmodification to keep pace with the evolving needs of the business.HR professionals at HPOs recognize that work and people are everchanging. They are more likely to focus on maintaining their knowledgeof emerging trends and best practices for talent management to helptheir organizations pivot their talent strategy when necessary.FIGURE 6Significant contrasts only. How important do you feel the followingknowledge, skills, and abilities are for HR to be considered asuccessful partner to the business? (Extremely Important.)All ultation and collaboration skills59%Coaching and team developmentabilitiesMaintaining knowledge of trendsand evidence-based practices in HR69%50%35%76%58%Knowing which knowledge, skills, and abilities are important doesn’tnecessarily mean that there are opportunities for their development.Most organizations invest in some kind of professional development,but not all of that investment is perceived as adequate to the demandsof HR roles and the effort of sustaining HR-business partnerships(Figure 7). Less than half of the HR professionals surveyed agreethat they receive sufficient support across any of the strategic HRcapabilities they view as important.The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 13
FIGURE 7How important do you feel the following knowledge, skills, andabilities are for HR to be considered a successful partner to thebusiness? (Extremely Important.)49%Employment and labor law31%20%Consultation and collaboration skills47%27%26%Coaching and teamdevelopment abilities46%29%25%Emotional intelligence andprofessional skills45%Maintaining knowledge of trendsand evidence-based practices in HR44%Project and changemanagement skills26%33%41%31%38%Business and financial acumen34%Data analytics skills28%Marketing and communication skills 29%27%31%32%23%27%35%35%41%Yes, we invest in development but it’s inadequateYes, we invest in development and I receive sufficient supportNo, we don’t invest in developmentThis picture changes for high-performing organizations. They understandthe value of effective HR-business collaboration and continue to investin the development of their HR professionals to support and sustainthese partnerships (Figure 8).12 This investment is targeted to providethe greatest support to the skills HR professionals identify as the mostimportant in these efforts. High-performing organizations do more toenhance opportunities for keeping current in evidence-based practices(65% vs. 35% all others), employment and labor law (79% vs 39% allothers), and business and financial acumen (70% vs. 29% all others).Not only that, but HPOs tend to offer the most support around coachingand team development (79% vs. 33% all others), and the consultingand collaboration skills (74% vs. 36% all others) that HR professionalsidentify as key in building and sustaining HR-business partnerships.The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 14
FIGURE 8Does your organization invest in your individual development in thefollowing areas? (Yes, I receive sufficient support.)High-PerformingOrganizationsEmotional intelligence andprofessional skillsAll OtherOrganizationsConsultation and collaboration skills79%33%Employment and labor law79%39%Business and financial acumen70%29%Project and change managementskills72%31%Maintaining knowledge of trendsand evidence-based practices in HRMarketing and communication skills74%36%Coaching and team developmentabilitiesData analytics skills71%33%65%38%54%26%20%47%“The recipe for success is pretty similar whether you’re in the public or the private sector. Themost important ingredient for that recipe is to have staff that have the technical HR expertise,but who then also know the business .Once you understand the business as a human capitalor human resource professional, you’ll have a much better understanding of how to translate abusiness need through an HR lens and identify what you can do to help that business line besuccessful in meeting their goals.”—Dan Reece, Director of Workforce Planning and Analytics, U.S. Department of Housing and Urban DevelopmentThe Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 15
“When it comes to strategyand alignment, those HRprofessionals that are alwayssitting at headquarters awayfrom the front-line managers,can miss understanding thespecific needs of variousbusiness units. So HR needsto reach out to their partnersand do a better job ofexplaining why the businessneeds them.”—Matt Charney, RecruitmentSolutions and Strategy Leader,Quantum WorkConsultative and Collaborative RelationshipsThe Challenge—Weak Relationships and PoorCollaborationA lack of investment in the development of strategic HR capabilitiescarries consequences for the strength of HR-business partnerships,setting up barriers to truly collaborative relationships between HR andbusiness leaders. A lack of buy-in for HR or business initiatives at anylevel can be indicative of either a miscommunication of intent or amisunderstanding of needs (Figure 9). The absence of a clearly definedstrategy doesn’t serve to improve this situation. Still, it isn’t alwayspossible to differentiate the actual lack of a strategy from simply theuneven or incomplete communication of strategy across stakeholders.These problems are symptomatic of weak relationships and poorcommunication across the entire organization and speak to a need formore considerable attention to improving processes for continuousfeedback and mutual support between HR and the business.FIGURE 9What are the current, top challenges for developing and sustainingHR and business partnerships at your organization? (Select no morethan five.)28%Lack of a clearly defined strategyLack of senior leader buy-infor HR initiatives23%Lack of manager buy-infor HR initiatives17%Critical lapses in HR knowledgeamong managers16%Lack of employee buy-in aroundorganizational directives12%Interpersonal clashes12%Lack of HR buy-in for strategicbusiness initiatives12%The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 16
HPOs are doing more to support collaborative relationships betweenHR and the business. They are more likely to report the close exchangeof communication between people managers and HR practitioners (84%vs. 61% all others). This communication isn’t restricted to the day-today details of work, but likely extends to more interpersonal efforts,including the exchange of performance feedback (58% vs. 37% allothers) that can enhance their working relationships (Figure 10).FIGURE 10Please rate your level of agreement with the following. (Percent oftotal responses which “Somewhat agree” and “Strongly agree” withbreakdown by HPO status.)High-Performing OrgsAll Other Orgs84%67%At my organization, thereis close communicationbetween peoplemanagers and HRpractitioners.61%High-Performing OrgsAll Other Orgs39%Overall, HR and peoplemanagers give each otherperformance feedbackto improve their workingrelationships.37%58%“You have to build rapport andcredibility with people managersso that when it comes time fordifficult conversations, theyalready know that I understandwhat the constraints are, whattheir budget is, how they needto work in this business and intoday’s market.”—Casey Stevenson, Director ofThe Solution—Support, Advise, and Develop PeopleManagersFeedback between HR and the people managers with whom they workcan take many forms. It doesn’t always rely on formal review mechanisms.Instead, HR can advise, inform, and offer development to peoplemanagers when it’s needed or desired. Often, HR provides support topeople managers in similar domains as the strategic HR capabilitiesthey require in their work (Figure 11). This sharing of knowledge andinformation provides a common ground for their conversations and fillsgaps in critical HR knowledge needed by people managers.Talent Management, MasergyThe Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 17
FIGURE 11In which of the following areas, does HR provide people managerswith training, development, and support? (Select all that apply.)Coaching and teamdevelopment abilities78%Employment and labor law56%Emotional intelligenceand professional skills56%Consultation andcollaboration skills47%Project and changemanagement skills43%Knowledge of trends and evidencebased practices in HR34%33%None of the above26%OtherMarketing and communication skills“Our job in HR is to coach,counsel, and advise. We needto let managers know thatwe’re here to assist them. Wedon’t want to take over theirjobs, we’re here to help themleverage their employees’abilities, to help them meettheir financial goals, minimizegrievances, improve teamcommunication. We are hereas a resource to assist themin their efforts.”17%Even though HR professionals commit resources to develop theirpeople managers in these areas, there are still critical disconnectsbetween their efforts and the confidence they have in their peoplemanagers’ knowledge, skills, and abilities. Unfortunately, less thantwo in five respondents report that they are either very or extremelyconfident in their people managers’ abilities (Figure 12). That numberdrops to one in four for high-value skills, including data analytics,emotional intelligence, and team development.—Michelle Shelton, Chief HumanResource Officer, Marion CountyOregonThe Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 18
FIGURE 12In general, how confident are you in your people managers’knowledge, skills, and abilities in the following areas? (Very andExtremely Confident)39%Business and financial acumenConsultation andcollaboration skills32%Project and changemanagement skills31%Coaching and teamdevelopment abilities26%Emotional intelligenceand p
The Great Reset How High-Performing Organizations Build HR Business Partnerships to Thrive in the Resilience Economy 2 TABLE OF CONTENTS Executive Summary 3 Why Now is the Best Time for a Strategic Reset of the HR-Business Partn
May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)
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Le genou de Lucy. Odile Jacob. 1999. Coppens Y. Pré-textes. L’homme préhistorique en morceaux. Eds Odile Jacob. 2011. Costentin J., Delaveau P. Café, thé, chocolat, les bons effets sur le cerveau et pour le corps. Editions Odile Jacob. 2010. 3 Crawford M., Marsh D. The driving force : food in human evolution and the future.
