How to Position HR as a Strategic Business Partner

Between the heightened demands of a pandemic (in which human resources departments were tasked with managing an entirely remote workforce for the first time ever) and an ensuing labor shortage, HR has solidified its seat at the table as a strategic business partner. 

By embracing HR as a strategic business partner and empowering its professionals to become part of the conversation, organizations can leverage human capital to drive business objectives, gain a competitive edge, and impact the bottom line. 

But how exactly can businesses make that transition and unlock the true power of quality human capital management? 

Elevating HR as a Strategic Business Partner

We sat down with Tiffany Montgomery on this week’s episode of America Back to Work: Expert Interview Series to find out. 

Montgomery is the director of HR at Saul Ewing, a full-service, national law firm with more than 400 attorneys and a team of top-notch business professionals. 

She is a strategic and innovative human resources leader with more than 20 years of experience positioning HR as a business partner for excellence in all areas of human resources, including but not limited to talent acquisition, employee education and development, organizational design, compensation and benefits, employee relations and HR operations. 

Below are her top tips for elevating HR within the company. 

Understand the Business Model

The first step in positioning HR as a strategic partner is to get familiar with the organization’s business model, goals, and objectives. “The first thing you must do is understand the organization,” says Montgomery. 

With this understanding, HR should align its strategies with broader business goals, using workforce interventions to drive desired outcomes—whether increasing revenue, expanding into new markets, or improving customer satisfaction. 

HR professionals should also become fluent in the business’s terminology and key performance indicators to communicate effectively with other departments and senior management.

Measure and Showcase Effectiveness

To highlight the ways in which HR is bringing value to the bottom line, Montgomery recommends that HR leaders leverage the data housed in their Human Resources Information System (HRIS) to conduct employee analytics.

By taking a closer look at employee data, HR can measure the return on investment of its initiatives and, ultimately, demonstrate their value to the business (i.e. increased productivity or reduced turnover). HR should regularly report on its achievements and effectiveness to senior management to secure resources, garner support for future initiatives, and improve the department’s status. 

Build Strategic Relationships 

HR leaders should cultivate strong relationships with the C-suite and other business leaders to position themselves as strategic partners. “Get to know the leaders and their pain points,” says Montgomery. 

By providing leaders with tailored solutions to important problems, HR professionals are more likely to elevate the entire department. 

Empower Leaders to Make Data-Driven Decisions

Montgomery views HR as a source of valuable “intelligence” and encourages leaders to leverage the valuable data the department houses (around productivity, engagement, turnover, and more) to equip business leaders with the information they need to make informed and pointed decisions. 

For example, staffing data housed in an HRIS can help executives see how different departments stack up against one another regarding headcount and skill sets so they can prioritize departmental hiring needs.  

Talent Management 

Today, the war for talent rages on as companies across the country continue to compete for the best workers. To align HR more closely with company priorities and garner more trust as a strategic partner that drives key business objectives, HR leaders should prioritize attracting, retaining, and developing talent. 

For more insights into how to position human resources as a strategic business partner, click here to listen to the episode wherever you get your podcasts.