Is Your HR Business Partner Model Failing? Here’s Why and How To Fix It
The HR Business Partner model blends strategic impact with operational excellence. Done right, HR becomes a strategic, value-adding partner. However, when implemented poorly, businesses see higher costs, slow execution, and duplicated efforts, eroding trust in HR’s strategic credibility.
The Human Resources Business Partner (HRBP) model became popular in the late 90s and has remained a popular concept in the field of Human Resources Management ever since. The model gained prominence because HR wanted to increase its business impact, showcase its value to shareholders, and align its activities better with the needs of the organization.
This development happened in conjunction with HR moving from personnel and HR management into the Strategic HRM era and redefining its way of work. The model aims to shift the focus of HR from traditional, transactional tasks to more strategic, value-added activities that directly contribute to the achievement of business outcomes, increasing efficiency and cost-effectiveness in the process. This results in improved business performance and agility.
However, despite its continuing popularity, the HRBP model often fails to achieve the expected results, particularly when it comes to efficiency and effectiveness. Let’s look at the benefits of the HRBusiness Partner model when implemented correctly, unpack the seven most common reasons why HRBP models fail, and what steps you can take to fix yours.
Contents
Why organizations use the HRBP model
7 reasons why the HRBP model fails
5 ways to help your HRBP model succeed
Next step: Assess your HRBP model implementation
Why organizations use the HRBP model
The HRBP model shifted the HR departments from primarily dealing with administrative tasks and personnel matters to positioning HR professionals as strategic partners working closely with business leaders to align HR strategies with overall organizational goals.
This foundation lets HR professionals collaborate with business leaders to understand the company’s strategic objectives and develop HR strategies that support these goals. HR is not just the implementer but actively contributes to shaping the organization’s direction.
Here’s why organizations choose the HR Business Partner model to operate their HR function:
- Operational excellence: The three-legged HRBP model consists of HR business partners, HR shared services, and Centers of Excellence (CoEs) led by a strong HR leadership team. Collaboratively, it drives operational excellence by aligning HR strategies with business needs, enhancing resource management, and optimizing efficiency and effectiveness across the HR function.
- Deep industry insight: HR Business Partners (HRBPs) are expected to have a deep understanding of the company’s operations, industry, and competitive landscape. This enables them to tailor HR strategies that closely align with the business environment.
- HR assumes a consultative role: HRBPs serve as consultants to both management and employees. They offer guidance on a wide range of HR matters, from talent management and performance evaluation to change management and employee development.
- Data-driven decisions: In the digital transformation era, the HRBP model emphasizes using data and analytics to make informed decisions regarding talent acquisition, employee engagement, workforce planning, and other HR functional areas.
- Employee advocacy: HRBPs champion the rights and wellbeing of employees, ensuring their concerns are addressed. This encourages a positive workplace culture, which leads to improved employee morale and retention.
7 reasons why the HRBP model fails
The HRBP model may have gained momentum in the 90s, but as you can see, its premise is as important today as it was then. So where is it going wrong?
Let’s take a look at the 7 biggest reasons why the HRBP model fails:
1. Failing to manage the change within the wider organization
How familiar does this scenario sound: The HR department introduces a comprehensive digital transformation program intended to streamline operations and enhance productivity. However, the operational team quickly encounters significant resistance.
The leadership team, accustomed to traditional methods of operation, view the program as an unnecessary disruption rather than an opportunity for improvement. This lack of alignment and support from the top makes it difficult for HR to implement new technologies effectively.
As a result, many employees remain disengaged with the new systems, leading to a prolonged transition period and diminished potential benefits of the digital transformation initiative.
What should have delivered a more efficient and productive workspace that benefits employees and the organization—not to mention customers—became a long, tedious project that left everyone feeling frustrated and unproductive.
It’s an age-old dilemma. While 70% of HR leaders believe their business operations leaders want HR’s strategic consulting capabilities to increase, the business leaders are not ready to work with HR in the role of a key player in the organization.
They often still view HR as ‘reactive order-takers’, instead of strategic and proactive business partners. What comes next is all too common: HR’s attempts to be proactive and strategic are met with skepticism or outright resistance, and HR’s role at the boardroom table is questioned.
Without this partnership in place, the organization will miss out on the strategic value HR could bring, such as identifying talent gaps or aligning workforce planning with business objectives. This misalignment ultimately leads to missed opportunities and ineffective talent management.
2. Failing to build trust within the HR team among BPs, Shared Services, and CoEs
For the HRBP model to work, you need a high level of collaboration, trust, transparency, and a common and shared goal. However, silos often form within HR, with Business Partners, Shared Services, and Centers of Excellence (CoEs) working in isolation.
This manifests itself as internal tension in HR and ‘in-fighting’. There is even a concept of ‘switching allegiance’, where the HRBP aligns more closely with the business leaders, prioritizing their goals over HR or the company’s objectives.
One reason this happens is that HR leadership fails to adequately lead the business partnering part of the operating model setup, leaving HRBPs to look for direction elsewhere.
A lack of change effort within the HR community and the siloed nature of the HR function exacerbates the problem. Businesses have to deal with inconsistent messaging, conflicting initiatives, and a dilution of HR’s impact on the business.
Ultimately, employee and manager experiences become fragmented and confusing, which often results in duplication of efforts. For example, a business ends up with seven different LMS systems because BPs have their own budgets and procure technologies without including CoEs, unnecessarily inflating costs.
3. A strong focus on implementing the “ideal” model
A multinational technology firm set its sights on revamping its HR structure to mirror the best HR Business Partner model championed by industry giants.
Driven by a vision of seamless HR integration and sophisticated data analytics capabilities, the company embarked on an ambitious overhaul. It invested heavily in cutting-edge HR software and advanced training for its HR team.
However, the company underestimated the adaptation period needed for both the HR department and the broader organization.
The transition to the new model was rocky. The HR team struggled to leverage the new technology effectively due to a gap in foundational skills, while business units found the sudden shift confusing and misaligned with their immediate operational needs.
The pursuit of perfection can be any project’s downfall. Businesses get stuck pursuing an ideal or high maturity state of the HR Business Partner model, which is not always attainable or necessary to deliver on business needs.
These organizations forget that there will be a transition period, that both HR and the business need to adapt to the change, and that the new model will take some time to mature. They invest a lot of effort into making it perfect, ignoring the proven fact that it takes time for something to develop. Consequently, efforts are wasted on reaching an ‘ideal’ state that doesn’t align with business priorities.
Many HR and business leaders will be familiar with the result: An organization aims to adopt an ‘ideal’ HRBP model, heavily influenced by best practices from leading organizations in their industry. They focus on advanced data analytics and integration between HR functions to achieve a high level of maturity.
In their rush, they invest a lot of resources in technology and advanced training, overlooking the necessary transition phase for HR and business units to adapt. This leads to frustration, an underutilization of new systems due to a lack of foundational skills among the HR team, and confusion among staff and leaders, delaying the expected strategic benefits of the HRBP model.
4. Failing to contextualize the model for the business
Every business operates within its own unique set of circumstances and challenges, shaped by factors such as industry dynamics, market competition, regulatory environment, and cultural diversity.
Failing to consider these distinct elements and taking a tailored approach to implement the HRBP model can lead to inefficiencies. For example, the ratio of Business Partners to employees should not be based on a standard formula but should take the complexity of workloads and the operating environment into account.
Similarly, organizations operating in different regions or states will need to take local regulations into account. This may impact the role of the BP. Without contextualizing the model, BPs may end up feeling overwhelmed and under-resourced.
This can lead to a perception that HR is a bureaucratic obstacle rather than a strategic partner. That is the exact opposite of what the HRBP model was designed to achieve.
5. Changing job titles instead of upskilling
At a FinTech startup, leadership decided to adopt the HR Business Partner (HRBP) model to align HR more closely with its strategic goals. Some of the existing HR personnel were rebranded as HRBPs, a move meant to shift the department towards a more strategic function.
However, this transition came without any substantive change in operations or investment in necessary training. The newly titled HRBPs found themselves struggling to meet the expectations of their roles, lacking in skills for workforce planning, strategic advising, and data analytics that their new titles implied they possessed.
In many companies that have implemented the HRBP model, the same people with the same relationships are being asked to do something different with a new role title. But have they been enabled to operate in a new way? Do they understand what the new job requirements are? Do they have the skills to deliver on that? Has any training been provided to the new HRBPs? Are they able to change how they engage with the business?
If the answer to any of these questions is ‘no’, HRBPs will continue to operate in a transactional mode, unable to effectively support business strategy. The lack of genuine role evolution frustrates both HR professionals and their business counterparts.
Consider what will happen when HR generalists are rebranded as HRBPs but no investment is made into strategic HR training.
The newly titled HRBPs will be ill-equipped to engage in workforce planning or advisory roles, causing tension with managers who expect strategic support. The existing HR team will also lack skills in data analytics and strategic planning to provide that support. What’s more, the HR employees end up under a lot of pressure, frustrated by the lack of clarity as to what their new role should look like and what the new expectations are.
The ultimate result? Increased turnover in the HR department, frustrated managers, and a failed HRBP model. If that doesn’t show the importance of providing adequate training, the fact that high-performing HR teams are 3.5x more likely to invest in HR skill development compared to their low-performing counterparts should.
6. Lacking insight into skill gaps within the HR team
The HRBP model is not one-size-fits-all. It requires different skills than more traditional, reactive HR models. Successful implementation begins with a view of what skills the organization has versus what it needs. This enables HR leaders to make informed decisions on upskilling, reskilling, and redeploying talent to level-set HR teams and build capabilities to deliver on the model.
The old allegory of the shoemaker’s children going barefoot applies: HR doesn’t spend the same effort on understanding HR talent pipelines and pools as it does on other functions.
Let’s look at this in action. When implementing the HRBP model, the goal is for HRBPs to play a more strategic role in the business. Unfortunately, if this is not translated into specific skills and behaviors that the HRBPs should exhibit, it becomes almost impossible to coach the team into better business partnering, even if HR is receiving negative feedback from the business.
However, if an organization utilizes a competency framework for the HRBP role and performs a skills gap assessment, management will have visibility into the root of any problems that arise. This will directly result in the HRBPs receiving the support they need.
7. Lack of operational excellence
At an environmentally focused consumer goods company, the leadership team decided to implement the HR Business Partner (HRBP) model. The goal was to cut costs and streamline operations.
In their effort to adopt this model, the company eliminated several transactional HR roles, with the expectation that technology would fill the gap in operational delivery. However, the necessary self-service technologies were not fully implemented or matured, leaving a significant operational void.
Additionally, the company’s leadership lacked a clear strategic vision, inadvertently pulling HRBPs back into day-to-day administrative tasks they were supposed to move away from.
This shift led to HRBPs spending a disproportionate amount of their time handling routine administrative duties rather than focusing on strategic initiatives such as talent management and organizational development. The result: the HR department continued to be seen as an administrative rather than a strategic partner.
A big drawcard for the HRBP model is cost-saving. On the ground, this often looks like reducing job roles at the transactional level without implementing and maturing the technology to support operational delivery. Yet, the model is highly dependent on self-service technologies to work.
What’s more, the effectiveness of the HRBP model also depends on the strength and strategic capability of the leadership team. When leadership teams lack a strategic vision, HR leaders (and HRBPs), are frequently drawn into operational and tactical work.
HRBPs become bogged down in administrative tasks, reducing their capacity to focus on strategic initiatives. This leads to a perception of HR as still being stuck in an administrative role, which undermines the value proposition of the HRBP model.
Centers of Excellence (CoEs) that specialize in areas such as talent management, learning and development, compensation and benefits, and diversity and inclusion must also operate with excellence to develop and implement best practices and innovative solutions. Their expertise and support are critical for enabling HRBPs to deliver strategic value to the business.
5 ways to help your HRBP model succeed
Implementing (or fixing) an HRBP model can be a complex task, and if you’re still here, it’s likely that your organization is currently struggling with one or more of the scenarios we’ve addressed. The good news is that there is a solution.
Avoiding these potential mistakes requires a comprehensive approach across 5 key areas.
1. Strategic alignment and business case development
- Focus on implementing a fit-for-purpose model: Tailor the HRBP model to fit your organization’s unique context, strategy, and culture. This involves analyzing business needs and designing the model to directly support business objectives.
- Build a robust business case: Justify the adoption of the HRBP model by demonstrating how it aligns with business goals and addresses current gaps in HR service delivery. Your business case should include potential ROI, improved operational efficiency, and better talent management.
- Have a clear understanding of the business needs: As an experienced HR practitioner, no doubt you have realized that this is not possible unless you have clear visibility into your organization’s needs.
2. Skills and leadership development
- Conduct an HR skills gap analysis: Before you can invest in skills and leadership development, you need to identify areas where the HR professionals in your organization need upskilling through a thorough HR skills gap analysis.
- Develop BPs’ business acumen: In addition to HR expertise, HR professionals, and especially BPs, should possess or develop strong business acumen to speak the language of their business partners and contribute to discussions from a strategic and operational perspective. In other words, they possess a balanced mix of deep HR expertise and broad business understanding.
- Follow the HR Success Blueprint: Focus on developing the mindset, skill set, toolset, and heartset of HRBPs through thorough training programs. You can also set up training boot camps to level-set your HR professionals’ competencies. Your goal is to build capabilities instead of merely changing job titles.
- Develop a strong HR leadership team: With the right skills development program in place, the next step is to create a senior HR leadership team responsible for leading the model effectively. This team should exemplify the strategic role of HR in the organization and mentor HRBPs in their development.
3. Change management and stakeholder engagement
- Develop a roadmap and implementation plan: To avoid the failure of your HRBP model, you need to implement it thoughtfully from the very start. Develop a structured roadmap and a detailed implementation plan that includes milestones, key progress metrics, and a clear timeline.
- Drive internal change management initiatives: Strong change management and stakeholder management are crucial to navigating the transition smoothly. Educate key stakeholders on the new HRBP model, what to expect from it, and how it will benefit the organization. This involves securing adequate sponsorship, and communicating roles and responsibilities and the value addition of the HRBP model.
- Enable HRBPs to build strong relationships: Finally, HRBPs must establish strong relationships with key stakeholders and business leaders to ensure the model’s success. These relationships are foundational to understanding business needs and effectively supporting strategic objectives. High-performing HR teams are 9.5x more likely to have HRBPs regarded as true strategic partners by business leaders compared to low-performing teams.
4. Technological enablement and operational excellence
- Implement effective self-service tools: Remember how we said that this model is highly dependent on self-service technologies to really work? Success hinges on an investment in HR technologies that automate transactional tasks and enable HRBPs to focus on strategic activities. Moreover, effective self-service tools improve efficiency and user experience for employees and managers.
- Streamline your tools and offer proper training: More technology does not automatically mean your HRBP model will work. If every department invests in a different platform, platforms are not properly used, or even ignored, the result will be poor productivity, wasted resources, and inefficiencies. Investigate the best options, select one, and ensure proper training and change management.
- Take a phased approach: It’s also important to acknowledge that transitioning to the HRBP model is a process, not a one-time event. Plan for a phased implementation that allows for adjustments and learning as you’re rolling out the model.
5. Continuous evaluation and evolution
As the HRBP model evolves, you will need to continuously assess and plan for the HR function’s future needs. This includes workforce planning, talent development, and succession planning to sustain the model’s effectiveness.
- Establish clear milestones and metrics: Track the implementation’s success and the ongoing effectiveness of the HRBP model. This enables continuous improvement and alignment with business objectives.
- Plan for organizational growth: Always consider how the HRBP model will scale with the organization’s growth. You need to plan for the expansion of BPs, Shared Services, and CoEs, work on adjusting ratios of HRBPs to employees, and evolve the model as business needs change.
- Be flexible: For ultimate success, the HRBP model must remain flexible to adapt to organizational changes, industry trends, and external factors. To achieve this, you need to regularly review and adjust HR strategies and practices to remain relevant and effective.
Once that is in place, you will have an HRBP model that delivers on its key objectives, engaged HR leaders and BPs, and an aligned workforce and organization that benefits from a strategic HR partner.
Next step: Assess your HRBP model implementation
HRBP Impact Assessment
You’ve implemented the HRBP model, but how do you know if it’s delivering the strategic impact your organization needs? This is when you must evaluate your HR practices to check whether they effectively align with your business goals and drive the desired business outcomes.
We have developed an HRBP Impact Assessment to help you diagnose how well you’ve implemented your HRBP model. The assessment provides a comprehensive analysis across five critical areas: Strategic Impact, HR Structure, Systems of Work, Stakeholder Relations and, Skills.
Once you have completed the assessment, you receive instant feedback and actionable recommendations in a detailed report. The report also includes a benchmark of your model against other companies.
These results will help you evaluate whether your HRBP model implementation is effective and identify improvement areas.
Learn more
Related articles
Are you ready for the future of HR?
Learn modern and relevant HR skills, online
