» HR 4 HR. Kienbaum Management Consultants. Professionalizing HR functions through competence development and more attractive career prospects

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1 Kienbaum Management Consultants» HR 4 HR Professionalizing HR functions through competence development and more attractive career prospects Kienbaum Study

2 This study was produced in cooperation with the Personalmagazin. We owe our thanks to all institutions, associations, and companies without whose active support our research would not have been possible. 2

3 » Preface Employers everywhere in the private and the public sector alike have recognized the increasingly prominent role played by factors commonly defined as people issues, that is for example, demographic trends, talent management, or effective leadership cultures. In response, they are right to expect their HR functions to develop and introduce effective solutions for these many challenges. However, many companies have also had to realize that their HR functions are not fully up to par in every case, and as a result the contributions of HR to commercial success are often not appreciated. One clear indicator for this disconnect can be found in the standing of HR in their organizations as read in the budget allotted to it, which is currently experiencing a slight downturn. Too often, HR functions are still considered part of the administrative side of the business, which might be good at executing administrative tasks, but not an equal business partner for its internal customers expecting strategic advice. When looking for why the situation of HR is as it is, strategic and organizational reasons are often named, but there is much to suggest that the professionalization of HR employees is often still lagging behind in terms of advisory, conceptual, and service delivery competences with regard to HR s transformation into a more expansive 3-pillar / 3-role model. The still lacking attractiveness of HR as a career choice for experienced professionals and new talents is another force impacting on the current perception of HR. With these considerations in mind, Kienbaum has joined forces with the Personalmagazin to produce the HR 4 HR study. It offers insights into the extent to which HR is considered an attractive place to work, how the competences of the various roles in HR are perceived currently and how effective HR is in terms of preparing its own talents for HR. The findings of the study present valuable and tangible opportunities for companies to make their HR functions both more attractive and more professional. We hope you will enjoy our insights! Paul M. Kötter Jens Bergstein 3

4 » Contents 6 Study design 8 HR today» How is the value contribution of HR perceived?» Which people issues matter at German companies? 12 HR has an HR problem» Do HR professionals live up to their expectations? 20 Careers in HR?» How attractive is a career in HR today?» What do young professionals expect for their careers? 30 Developing HR» What are the key levers for improving HR careers?

5 » Executive Summary The Key Findings in Brief The Kienbaum Study The HR 4 HR study was conducted in collaboration with the Personalmagazin. Its objective was to measure the attractiveness of HR functions and to identify specific targets for intervention and ways to make HR more appealing. To that end, the exploration focused on the current perception of the competences in the main HR roles and the HR professionals own perception of their careers, as well as the perspectives of professionals in other functions and young people entering their professional lives. HR today People issues are gaining more and more strategic relevance for businesses everywhere. Improving leadership and management quality and managing change are important fields for action for HR professionals. At the same time, people tend to rate the contributions of HR around the lower end of the average range when compared to other central functions, such as business strategy/business development. HR has an HR problem From the viewpoints of their internal clients, one in three HR business partners (HR BP) does not live up to their expectations, with particular criticism levelled at their performance in the leadership and management competence cluster, such as market and strategy skills or entrepreneurial thinking and behavior. These competences are regarded as vital in the search for a suitable response to important people issues and, by implication, for the value contribution of HR as a whole. By contrast with HR BPs, centers of expertise (CoEs) and shared service centers (SSCs) are rated much more positively, with some room for improvement in the cluster entrepreneurial thinking and behavior at CoEs and analytical and consulting skills at SSCs. Careers in HR? When assessing the most important aspects in terms of career prospects in HR, the picture is alarming. The surveyed professionals rate almost all aspects of HR careers more negatively than similar careers in other areas of the business. They put particular emphasis on challenging tasks, individual professional freedom, and responsibility. Over half of the students participating in this study expressed an at least general interest in beginning their careers in HR. The detailed findings, however, suggest that the HR function is performing far worse in terms of the key criteria that students expect for their entry into professional life. Specifically, the talented professionals of the future demand interesting tasks, space to take the initiative, success prospects, and appreciation. Developing HR Overcoming the current competence gaps means either that today s HR professionals need to complete effective qualification measures or that talented people with more business affinity need to be recruited into HR, either from other business areas or directly from university campuses. The latter then need to develop a sense for the craft of HR. The current study suggests that HR is facing an image problem. In order to find the right talents for the area, a career in HR needs to become a more appealing option. More skill and will can have a positive impact on the essential levers for HR s standing, namely in terms of its early involvement in the wider strategic processes and closer interdisciplinary partnerships between equals. 5

6 » The Kienbaum HR 4 HR Study covers multiple perspectives and a wide variety of companies in terms of size and sectors of industry General information about respondents and participating companies The Kienbaum HR 4 HR Study was conducted as an online survey in late 2013, using the responses of 180 executives and employees at approx. 120 German companies. Of these 180 respondents, 47% (84 people) were executives and employees in HR, whereas 40% (73 people) were based in other business functions. 13% of the participants had other functions. This group includes e.g. lecturers, academics at research foundations, or HR consultants. Executives / Employees outside of HR Executives / Employees in HR Other functions 13 % 47 % 40 % In addition to the 180 professionals, 425 students were surveyed about their career expectations and the attractiveness of HR as a possible start for their careers. This additional perspective was included to identify the potential weak spots in the image of HR, which can have considerable impact on the ability to recruit top talents. The results for this dimension are covered in part 4 of this report. A melting pot of generations 21% of the participating professionals were 50 or older at the time of the survey and thus part of the so-called Babyboomer generation. The middle age group 35 to 49 years of age mostly represents the Generation X. The Generation Y is represented by the youngest age group 20 to 34 years of age among the professionals and the participating students % 20 to 34 years of age 47 % 35 to 49 years of age 21 % 50 or older 6

7 Participating companies by life-cycle phases % 36 % 44 % Start-up Growth Maturity/ Stagnation 9 % 8 % Crisis No data Participating companies by headcount 29 % 10 % 24 % 37 % up to 1,000 employees 1,001 to 5,000 employees 5,001 to 10,000 employees more than 10,000 employees Participating companies by sector of industry % Automotive 14 % 12 % 6 % Banking & insurance Chemical & pharmaceutical Energy, utilities, environmental 5 % Health & welfare 3 % 8 % Retail Engineering, technology, high-tech 6 % Media & publishing 5 % Mechanical & plant engineering 18 % Professional Services 4 % Telecommunications & IT 12 % Transport & logistics 7

8 » HR today 8

9 » In a cross-function comparison, HR s value contributions are rated as modest by HR professionals themselves and their internal clients The participating professionals were asked to assess the HR function s contribution of commercial value for the business as compared to other business areas. Business strategy / development Marketing / Sales -0,58-0,57-0,62-0,23 Finance / Controlling IT -0,43-0,08-0,05-0,04 Corporate communications / PR 0,04 0,19 Legal / Compliance / Sustainability Central procurement 0,15 0,29 Average weighted responses (HR worse) (approx. equal) (HR better) 0,12 0,14 internal clients HR The comparatively poor performance of HR from the point of view of operational practice is supported by three other factors: 1. Lacking process orientation in many HR functions. 2. Insufficient performance monitoring of important HR processes in terms of their effectiveness and efficiency. In many HR functions, there are few reliable indicators to show the essential contribution of HR to corporate value creation. 3. Poor internal communication. Few good HR professionals are also good at self-marketing. Where the establishment of new roles and competences in strategic concerns has achieved real successes, which might even be recognized by the internal clients, these successes need to be publicized actively throughout the organization. This is the only means to overcome the remaining reservations. 9

10 » HR professionals agree with their peers in other functions about the most important strategic people issues The participating professionals were asked to select three people issues from a list that have particular priority for their organization s HR work in 2013/2014. Top-10 areas for HR from the perspective of non-hr professionals Top-10 areas for HR from the perspective of HR professionals Improving the quality of leadership and management 28 % Improving the quality of leadership and management 40 % Change management 26 % Change management 33 % Recruitment 26 % Talent management 29 % Competence and skills management 26 % Employer attractiveness 27 % Employer attractiveness 24 % Strategic workforce management 19 % Qualification and development 22 % Performance management 19 % Talent management 17 % Improving HR efficiency 17 % Performance management 17 % Recruitment 17 % Improving HR efficiency 13 % Succession planning / management 15 % Age distribution (demographic trends) 13 % Competence and skills management 14 % * Multiple answers allowed ** Percentages are based on a combination of the data from the current study and the Kienbaum HR Trend Study of

11 » On average, the HR issues are regarded as more important than other strategic topics in the business The participating professionals were asked to rate the importance of the HR issues selected by them by comparison to other strategic concerns. Improving the quality of leadership and management Change management 57 % 20 % 23 % 30 % 40 % 30 % comparatively less important about equal comparatively more important Talent management 23 % 42 % 35 % Employer attractiveness 26 % 34 % 40 % HR issues rated by lifecycle phases of the organizations: Top-10 areas for HR at start-ups Top-10 areas for HR at companies in crisis Performance management 40 % Change management 50 % Improving the quality of leadership and management 40 % Recruitment 33 % Work-life balance 25 % Talent management 22 % Strategic workforce management 20 % Improving HR efficiency 22 % Recruitment 20 % Improving the quality of leadership and management 17 % Succession planning / management Competence and skills management Improving the quality of appointments to top and key functions HR strategy dialogue Diversity management 20 % 20 % 20 % 20 % 20 % Qualification and development HR strategy dialogue Age distribution (demographic trends) Improving the quality of appointments to top and key functions Motivation and engagement 11 % 11 % 11 % 17 % 17 % The priorities shift considerably for organizations in extreme situations, such as their original establishment or strict consolidation of a weakened business. Companies in crisis put the key focus for example on change management, whereas start-ups are more interested in aspects of performance management. 11

12 » HR has an HR Problem 12

13 » A lack of key competences among HR professionals means that the HR function does not meet all of its requirements One in three HR business partners does not live up to the expectations of his or her internal clients. From the HR professionals own point of view, HR BPs are regularly seen as highly competent, dynamic, and resilient, but only very few of them meet the expectations placed on them by the executives outside of HR. HR BPs are considered skilled at establishing and maintaining relationships with their clients (in terms of competences like their customer service mindset, cooperation and empathy), but far less competent in areas concerning strategic, businessoriented advice (e.g. strategy and market skills, entrepreneurial thinking and behavior). However, it is exactly these competences that are considered key for an appropriate response to the essential people issues, such as improving leadership quality, and thus for the value contribution of HR as a whole. The viewpoints of the HR professionals and their internal clients differ particularly strongly in the assessment of personal competences like their energy and resilience or their functional competences. By comparison to the HR business partners, the other two pillars in the 3-pillar/ 3-role model i.e. the centers of expertise (CoEs) and shared service centers (SSCs) are rated much more positively. Nonetheless, there is room for improvement in the competences of these functions as well. The study shows that CoEs fall far short of the expectations in terms of entrepreneurial thinking and behavior. Such business affinity is, however, essential when trying to design meaningful and effective HR policies and instruments for the business and applying these successfully in cooperation with HR BPs. The SSCs have most ground to cover in the case of their analytical and consulting skills. This is another highly relevant finding, as it can be considered a key to greater acceptance in the workforce at large, a visible contribution to improving efficiency, and a means of creating the necessary freedom and reserves for HR BPs to engage with their original strategic support duties. Although more than half of the participating HR professionals confirm that their companies have dedicated HR strategies, only marginally more than 50% of the companies have also defined the competences that are necessary to execute it. With only around 10%, very few companies have actually integrated these competences in their requirements profiles or in the design of their development programs. Potential causes for the perceived skills gaps therefore seem evident. 13

14 » HR business partners show a particular lack of leadership and management skills The participating professionals were asked to rate the presence of the required competences in their organizations HR business partners. Leadership / Management Competences Strategy and market skills Innovation and change management Entrepreneurial thinking and behavior Analytical and consulting skills Customer service mindset -0,76-0,46-0,72-0,54-0,41-0,13-0,12-0,02 0,26 0,42 Personal Competences Energy and resilience Individual aptitude for learning and change Performance motivation Integrity and commitment -0,22-0,15 0,04 0,14 0,43 0,62 0,77 0,94 Social Competences 14 Persuasiveness and personal impact Intercultural openness Cooperation and empathy Functional competences in HR -0,43-0,26 0,04 0,15 0,28 0,56 0,64 0, (Not fulfilled) (Fulfilled) (Exceeded) Internal clients HR Average weighted answers

15 » Centers of expertise need to become more competent in entrepreneurial thinking and behavior in order to offer meaningful solutions The participating professionals were asked to rate the presence of the required competences in their organizations centers of expertise (HR expert function). Leadership / Management Competences Personal Competences Entrepreneurial thinking and behavior -0,10 Leadership of own personnel 0,02 Innovation and change management 0,08 Customer service mindset 0,10 Analytical and consulting skills 0,25 Individual aptitude for learning and change 0,09 Energy and resilience 0,39 Performance motivation 0,50 Integrity and commitment 0,65 Social Competences Persuasiveness and personal impact 0,15 Cooperation and empathy 0,19 Intercultural openness 0,28 Functional competences in HR 0,42 HR -0,2 0 0,8 (Not fulfilled) (Fulfilled) (Exceeded) Average weighted answers 15

16 » Lacking consulting skills in SSCs are affecting the quality of customer service and the interface with HR BPs in particular The participating professionals were asked to rate the presence of the required competences in their organizations shared service centers (HR support function). Leadership / Management Competences Analytical and consulting skills -0,03 Leadership of own personnel 0,07 Focus on action and results 0,08 Customer service mindset 0,26 Personal Competences Individual aptitude for learning and change 0,02 Energy and resilience 0,18 Performance motivation 0,26 Integrity and commitment 0,45 Social Competences Persuasiveness and personal impact -0,10 Cooperation and empathy 0,02 Intercultural openness 0,09 Functional competences in HR 0,15 HR -0,2 0 0,5 (Not fulfilled) (Fulfilled) (Exceeded) Average weighted answers 16

17 » Few companies have defined the necessary competences for the execution of their HR strategies To what extent are the necessary competences and skills for the execution of the HR strategy considered in the current job profiles for HR personnel? To what extent are the competences and skills measured in the executives and employees of your HR function?* 68 % Assessments in the selection process 13 % Assessments in the promotion process 8 % Assessments of established personnel 24 % 4 % 3 % 9 % 13 % 3 % Other formats Competences not defined 1 % 68 % Not at all Not much Partially Mostly Completely Competences not defined * Multiple answers allowed To what extent are the necessary competences and abilities for the execution of the HR strategy considered in the design of HR development measures? 68 %» Most companies have considerable ground to make up in terms of measuring and developing the necessary competences in HR.» The results reveal a plausible cause for the competence gaps identified in HR professionals. Not at all 0 % 3 % Not much 10 % Partially 17 % Mostly 2 % Completely Competences not defined» For the performance of HR to improve, the relevant competence requirements for HR need to be defined and considered in HR s selection and development processes. 17

18 » Kienbaum s HR Business Partner Qualification: Eight modules to contribute more added value for the internal clients Modules in the Kienbaum qualification program Business management and HR BPs value contributions Project management for HR BPs Working with social partners Change/ Transformation HR BPs service portfolio Interpersonal skills / Consulting Part 1 Interpersonal skills / Consulting Part 2 Controlling and optimization tools and instruments Continuous learning support for effective transfer Team development with internal clients Individual coaching 18

19 » Kienbaum s approach for empowering the critical roles in the HR function The development of the HR function is most obvious when one looks at the HR BPs stronger focus on the actual business of their internal clients. The assessments in this study have shown the evident gaps that still exist, especially in those competences that are necessary to actively shape and work on the essential HR issues. From this point of view, the undercurrent of dissatisfaction with HR is understandable, despite the evolution of its business models. HR s internal clients still do not see their expectations and essential requirements fulfilled to a sufficient degree. HR BPs achieve quite positive ratings for their ability to maintain effective and meaningful relationships, but they do not live up to their promise of contributing tangible value by effectually providing HR products with a greater relevance for the business. It is in this area that Kienbaum s approach comes into effect. Kienbaum s Approach The Kienbaum approach for empowering the critical functions in HR is built around a business-oriented assessment of the current status and capabilities of HR personnel in their roles as HR business partners, in centers of expertise, and in shared service centers. Understanding the status quo is the starting point for a rating of how well the current and future competence requirements for each HR role, in terms of achieving their strategic and operational purpose, are met and where there are gaps (fit and gap analysis). Based on this, customer-specific and needs-targeted learning and empowerment modules are developed for the target groups in question, with which the organization can effectively bridge the gaps. An effective combination of operational and strategic HR topics is provided for the various areas of competence. An eight-module program has proven effective for HR BPs, as it covers all areas that are critical for their success. The development and transfer formats are used for teams and individuals alike and always supported by active learning and implementation controls. The Kienbaum approach also considers the use of team development formats that bring together HR and their internal clients. Customer-Specific Adjustments» Business requirements for the HR BPs (depending on sectors of industry, size of the organization, strategic direction, client target groups)» Competence profiles of HR BPs (fit with the general competence model of the client, where available)» Selection processes for HR BPs (following established practice)» Fitting development opportunities for HR BPs (revision or new design of the individual modules)» Progress checks (definition of relevant KPIs or qualitative progress indicators) 19

20 » Careers in HR? 20

21 » In its war for talents with other business functions, HR needs to become much more attractive As the first part of this report reveals, the HR professionals of today often lack the essential competences they need for HR to offer generally recognized and appreciated contributions to the success of the business at large. In essence, this gap can be bridged by two means: By the effective development of the existing workforce or by the targeted recruitment of new people who bring the necessary skillsets with them. Even if a career in HR is not the last choice for people looking for the right business area for their careers, the responses of the professionals participating in the study reveal that the HR function has much ground to make up when the factors with most influence over people s career choices are concerned. There is also cause for alarm in how the reputation of a career in HR is perceived in the business: Many professionals see a move into HR as a career dead-end. With the usual career expectations of professionals in the business line in mind, this suggests that there is little incentive for them to consider such a switch. Today s HR professionals are also expecting something from their careers that they do not believe the HR function can fulfil for them in its current state. In particular, they wish for more challenging tasks, more individual professional freedom, and more responsibilities. The picture is also rather poor among the surveyed students. Their perceptions make it substantially harder to recruit qualified young professionals, especially in the changing recruitment climate in a time of demographic change. Specifically, today s students do not see many interesting tasks, much room for their own initiatives, success prospects, or appreciation in a potential career in HR. 21

22 » For professionals, challenging tasks are highly career-relevant The participating professionals were asked to rate a selection of factors in terms of their relevance for their career choices. Challenging tasks Individual professional freedom 1,77 1,69 1,53 1,64 Internal clients HR professionals Average weighted responses Leadership responsibility 1,53 1,45 Salary development Direct contact to top management Career development / prospects Development opportunities Reputation in the organization Work-life balance International opportunities 1,00 1,11 0,96 0,96 0,89 0,99 0,82 0,98 0,77 0,85 0,70 0,77 0,66 0,48 0 0,5 1 1,5 2 22

23 » Compared to other business areas, HR is performing far worse when the key career factors are concerned The participating professionals were asked to rate these criteria in the HR function by comparison to other business areas. Reputation in the organization -0,72-0,09 Internal clients HR professionals Average weighted responses Individual professional freedom -0,70-0,27 Challenging tasks -0,54-0,23 Leadership responsibility -0,54 0,07 International opportunities -0,50-0,11 Salary development -0,44 0,01 Direct contact to top management -0,30-0,24 Career development / prospects Development opportunities -0,30-0,21-0,11-0,13 Work-life balance 0,07 0, (HR worse) (approx. equal) (HR better) 23

24 » Both HR professionals and their internal clients do not see attractive career prospects in HR Responses from all professionals Responses from internal clients Work-life balance Direct contact to top management 1 0,5 Leadership responsibility Career development / prospects 0-0,5 Salary development -1 Development opportunities Challenging tasks Responses from HR professionals Reputation in the organization Career relevance Assessment of possibilities in HR Average weighted responses International opportunities Individual professional freedom» The poor reputation of the HR function is confirmed on the following page: The image of HR is clearly not on par with other business areas.» The results show that HR professionals themselves are also dissatisfied with their current working conditions and career opportunities. 24

25 » The career prospects for HR functions are clearly lagging behind other business areas The participating professionals were asked to rate the career prospects in the HR function by comparison to other business areas. Marketing / Sales -0,60-0,19 Internal clients HR Average weighted responses Finance / Controlling -0,36-0,19 Business strategy / development -0,16-0,24 IT Legal / Compliance / Sustainability -0,07-0,16-0,03 0,25 Corporate Communications / PR Central procurement 0,04 0,13 0,10 0,19-0,8 0 0,6 (HR worse) (approx. equal) (HR better) 25

26 » The HR function is struggling to find the right talents to respond to the new expectations 52 % The expectations in HR have become more demanding, but HR has difficulties attracting the right talents to respond to them. 18 % 20 % 9 % 1 % I disagree completely I disagree Undecided I agree I agree completely 37 % The image of HR is poorer than that of other business areas. 17 % 25 % 20 % 1 % I disagree completely I disagree Undecided I agree I agree completely Only 18% of all respondents believe that the image of HR is at least as good as that of other business areas. 26

27 42 % To get ahead in an organization, time spent in HR is not very helpful. 18 % 24 % 14 % 2 % I disagree completely I disagree Undecided I agree I agree completely Somebody who takes up a job in HR will later have difficulties with moving to another area. 33 % 20 % 24 % 20 % 3 % I disagree completely I disagree Undecided I agree I agree completely Over half of the respondents believe that spending parts of one s career in HR has a damaging effect on career prospects. 27

28 » Every second student is latently interested in starting a career in HR The participating students were asked to rate which areas of the business they would prefer for starting their careers. Business strategy / development Human resources 0,34 Marketing / Sales 0,28 0,48 A career start in HR is definitely an option for me. might be an option for me. is not an option for me. Women Men In-house consulting 0,24 Communications / PR 0,13 Sustainability -0,04 Procurement -0,18 30 % 10 % 60 % 28 % 38 % Controlling / Accounting Research & Development -0,40 Production -0,53-0,35 34 % Legal -0,68 IT -0,75 Average weighted responses (Not an option) (Possible option) (Definite option) The Young Talents Perspective A total of 425 students took part in an online survey in October % of these were female, and 36% male. The participants were enrolled on a variety of degree courses and subjects, with a majority (60%) studying business economics. This high response is a promising feature, since HR needs people with an economics background or similar profile to bridge its competence gap. Our study enjoyed considerable support from the following student bodies, to whom we owe our gratitude: c 28

29 but the young talents do not see the most important factors for their career choices fulfilled by HR Creative work Additional benefits Lots of travel 2,0 Interesting tasks Success through hard work Importance for career choice Assessment of possibilities in HR Average weighted responses Contacts with external clients 1,5 Development opportunities Teamwork 1,0 Pleasant colleagues 0,5 Supporting others 0 Challenging tasks Contacts with top management -0,5 Work-life balance Interdisciplinary cooperation Diverse duties Flexible hours Room for own initiatives International opportunities Contribution to corporate success Performance-minded team Appreciation in the organization Fast careers Monetary compensation Leadership responsibility Current discourse in the HR community Over the last half-century, the perceptions concerning professional careers have changed fundamentally. The socalled Generation Y is far more interested in the deceptively softer aspects, like self-expression, work-life balancing, or enjoyable teamwork, than the Generation X or the Babyboomers that came before. However, success and professional challenges have not lost their value. Instead, the new generation of employees is aiming for a balanced life and has a realistic sense of the demographic upheavals around it. People from this generation know that they need to find work that they can stay enthusiastic about even 45 years in the future. The secret: Intrinsic motivation, coupled with professional success. 29

30 » Developing HR 30

31 » Improved qualifications, attractiveness, and acceptance in the organization are the key levers for a professionalized HR function The study shows in stark detail that careers in HR can and have to be made more attractive. A more business-attuned stance would seem to be a perfect starting point for HR. The surveyed professionals agree that HR could benefit in particular from a better involvement in the organizational dialogue about strategy. By extension, this means the deduction of important strategic aspects that will be integrated in an HR strategy as well as in powerful HR instruments. The strategic dialogue is not the only place for HR to stress its contribution to the business. It also needs to offer professional advice and support for the company s change ventures. According to the respondents, the early involvement of HR in change processes is thus important. However, HR first needs to be enabled and empowered for these roles, as the stated gaps in the HR BPs competences indicate. Careers in HR deserve a general revaluation. HR positions need to be awarded the same value as other, similar functions in the business. One suitable option is to allocate HR BPs to a fitting grade to match the requirements for their functions, not least as perceived by the line organization. It is also important to open up the actual careers on a corporate level in the sense of easier transitions between different parts of the business. Ideally, this should flow in both directions with non-hr personnel joining the HR function as well. A number of companies have instituted specific sourcing strategies for their HR business partners to support this objective. Up to half of their BP positions might be staffed with people from outside the HR area, a viable means of ensuring the necessary business acumen. Naturally, these latecomers need to receive training concerning the essential HR instruments and processes. It is the right combination of business awareness and HR know-how that makes or breaks their success. Jobs in HR need to be made more attractive for young people entering the workforce in order to secure access to the talent of the future. This should include HR ambassadors on recruitment missions as an appealing public front for HR. Doing so becomes easier as the contributions of HR are recognized and appreciated more. Last, but not least, establishing attractive strategic concerns and processes, such as a dedicated HR strategy or strategic workforce and competence planning, is a good means of positioning relevant jobs in that area as appealing and soughtafter entry options. With a view to clear career tracks both within and outside of HR new employees need to be given transparent options for their careers. Structured trainee or placement programs in the many areas of HR and the business at large would give them the experience they need to take over larger responsibilities in HR management, e.g. leading up to appointments as Junior Business Partners or, further in the future, as HR directors. 31

32 » Strategic competences and business acumen are essential preconditions for more attractive careers in HR The participating professionals were asked to name the three levers they consider most important for making careers in HR more attractive.* Involvement in the development of the corporate strategy Cross-functional thinking and behavior / Interdepartmental cooperation 41 % 41 % Early involvement of HR in change processes Increased consulting and change management skills 31 % 34 % Introducing strategic HR planning and development Effective talent management 25 % 25 % Networking and improved internal and external communication Generally greater acceptance of HR 18 % 17 % Stronger focus on providing solutions 15 % Performance-oriented remuneration Optimized / Standardized (core) processes Introduction / Stronger application of specific KPIs in HR 12 % 11 % 10 % Larger HR budgets 8 % * Multiple answers allowed 32

33 » For a lasting improvement in the attractiveness of HR careers, companies should focus on four areas for action» Developing a business-driven self-concept» Engaging regularly with clients / best-in-class HR» Rotating HR professionals through other business functions Cultural change» Establishing a more profound understanding of the allocated business units» Defining clear HR performance management processes» Focusing more on general management in training A defined claim Improved image» Positioning HR professionally as a business function» Offering attractive placement or trainee programs» Grading HR BPs no more than one level below their allocated executives Greater opportunities» Offering career support for top HR professionals (across the organization)» Creating transparent career tracks in and beyond HR» Focusing more on on the job development 33

34 » Contact Kienbaum Management Consultants GmbH Human Resource Management HR Strategy & Organization Potsdamer Platz 8 D Berlin Study Authors Paul M. Kötter Director & Partner Phone: Fax: Mobile: paul.koetter@kienbaum.de Jens Bergstein Principal Phone: Fax: Mobile: jens.bergstein@kienbaum.de Dr Martin Stolz Senior Consultant Carolina Brömmel Consultant Alexandra Kurz Consultant 34

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