A new entrepreneurial role for HR

HR practitioners can benefit themselves and

their organisations by making the business
partner role more entrepreneurial.

relevant skills, knowledge and insight to become HR

entrepreneurs.

Since Dave Ulrich, the US business academic, first

unveiled the HR business partner model in 1997*, HR
teams in financial services organisations have been
striving both to get closer to line managers in the
business and to align their day-to-day actions with
strategic outcomes.

The role of HR entrepreneur has two aspects. Firstly, you

have to be sensitive to the needs of the business and
your internal clients. That means being able to link your
activities to the organisations strategy and success, while
also being able to communicate this effectively to senior
management. Secondly, you have to become a proactive
and trusted expert in talent management. Someone who
can partner effectively with line managers and make those
managers want to partner with you.

While varying definitions of business partnering exist,

the basic principle of the model is that HR practitioners
become embedded within the business, so they can
create and maintain the capabilities needed to deliver
value to the organisations stakeholders. However,
concerns have arisen that relatively few practitioners have
been able to fulfil the role.
Many simply dont understand how they can make the
transition. For some, the shift of emphasis from policy
interpretation and implementation to true partnering
has been too great to make. Others have struggled to
link their day-to-day work to business results. But other
factors have also come into play. Some line managers
either dont accept the importance of nurturing talent in
the organisation or they dont recognise HR practitioners
as being able to provide them with the support they need
to deliver greater value to the business. Instead, the HR
business partner is viewed as apart from the business,
rather than a part of the business.

Making HR integral to business

In a global knowledge economy, where change is
constant, talent becomes ever-more important as a
source of competitive advantage. Within organisations,
those who specialise in recruiting and maximising the
effectiveness of talent will therefore become integral
to business success. Those who are unable to deliver
sustainable value risk being replaced. Or indeed, HR itself
risks being outsourced.
There is clearly a need for some form of business partner
role. However, at Talent Q, our view is that a new variation
of this role is required. Todays practitioners need the

HR entrepreneur

The HR entrepreneur deploys strategic thinking,

entrepreneurial attitude, adaptability, achievementorientation and the ability to translate needs into
palatable, pragmatic solutions (real-world, not Ivory
Tower) for their clients. Its the antithesis of the because
thats how its done mentality. The HR entrepreneur can
effectively push back where required and ensure clients
understand the value they add to the business.
In short, the role requires a technical expert who is
also confident in managing challenging stakeholders,
has a clear and up-to-date understanding of the talent
management environment and the context of the industry
in which they work. In financial services, this includes
being sensitive to the regulated nature of the industry and
the contemporary challenges it faces - and how these
have the potential to impact talent management, tactically
and strategically.
Contrary to the popular picture of HR as an obstacle
to progress or an implementer of complex processes,
an HR entrepreneur is someone that managers want to
work with. They become a trusted advisor and technical
expert who can simplify HR processes and look after the
organisations wider people interests at the same time.
They make things happen.

Challenges within financial services

Against a demanding and complex regulatory
environment, financial services companies are focusing
on reducing costs while achieving more in terms of profit.

They need to maximise their internal talent and capability

within challenging hiring constraints. Up-skilling existing
employees can be positioned as a worthwhile alternative
to poaching HR talent from rivals.
Ethics, best practice and adherence to regulation are
all being emphasised by financial services organisations
publicly, a focus that must be reflected in internal practice.
Financial services organisations have experienced
headcount reduction, particularly following consolidation
processes. This has left group functions depleted, often
operating under incompatible legacy processes and
approaches. The result is a silo-based HR function,
tasked with achieving more with fewer resources at its
disposal.
Five key challenges for HR practitioners in financial
services are:
Effectively managing senior stakeholders in recruitment
contexts.
Implementing complex selection processes when
under pressure.
Dealing with multiple internal stakeholders and juggling
competing demands.
Managing negative perceptions both of their role and of
their contribution to the organisations success.
Keeping up-to-date on both the regulatory environment
and their own professional technical skills.

Up-skilling for a new role

New development needs will undoubtedly arise for those
looking to step up to the role of HR entrepreneur. For
example, recruitment teams will need:
A detailed understanding of how their organisation
operates, so they can speak the same language
as their internal clients and better understand the
requirements of the business.

04A04092013

In-depth knowledge of contemporary recruitment

practices. Ideally they should have an overview of best
practice approaches to high stakes recruitment, as
used in different industries around the world. Theyll
need to know how to get the most out of external
recruitment specialists and be up-to-speed with
reward packages. Theyll also need to be familiar
with innovative sourcing strategies, including use of
social media, and how to deliver a positive candidate
experience.
Influencing and negotiation skills. Recruitment teams
will need to prioritise requests and work proactively
with hiring managers and senior stakeholders to
achieve a win-win outcome. Many will need to become

more confident in how they manage their stakeholders,

in the face of internal pressure to hire quickly.
A pragmatic gold standard approach to assessing
candidates objectively and fairly, in a regulated
environment.
To stay up-to-date with the latest developments in
employment law, including flexible working and all
aspects of direct and indirect discrimination. The
challenges that financial services organisations face
in keeping up-to-date with changing employment
legislation and regulatory frameworks are significant.
Financial services providers need to have motivated and
effective HR teams if they are to achieve their strategic
goals. Established teams can become set in their
thinking. Creating new development interventions focused
on the above requirements can help to rejuvenate teams
and make them more excited about their work, more
confident in dealing with hiring managers, and senior
stakeholders, and better able to embrace change.
Financial services organisations looking to drive their
business forward want and need what HR entrepreneurs
can deliver. By stepping up to the role of HR entrepreneur,
HR practitioners can dramatically increase their impact on
business performance.
In summary, the HR entrepreneur role could benefit every
financial services company. However, it will be particularly
attractive to new entrants to the UK financial services
sector (who may look to buy in experts with technical
experience) and to overseas businesses who are keen
to act sensitively to the local needs of the UK market.
UK operators will therefore need to be mindful of rivals
seeking to poach their HR entrepreneurs.
* Ulrich D. (1997). Human Resource Champions: The next agenda for
adding value and delivering results. Boston, MA: Harvard Business
School Press.

Dr. Richard A. MacKinnon is

Head of Learning & Development
Solutions, UK at Talent Q
He can be contacted at
richardmackinnon@talentqgroup.com

For more information, please call Talent Q on +44 (0)1844 218980 or visit www.talentqgroup.com