Business Skills at a Premium, Top Competencies for HR People

02/26/07

HRNext.com asked people to complete this sentence: “Where I work, management thinks HR is…” With three answers to choose from, the results couldn’t be more depressing:

53 percent: “Just there for the paperwork and payroll.”

4 percent: “A bunch of whiny crybabies.”

43 percent: “Important and strategic.”

HRNext’s John Brady observed, “HR people believe they can contribute as much to the company as anyone, yet they’re perceived as a necessary evil—a cost instead of a profit center.”

Though a majority of poll respondents clearly feel undervalued, those 43 percent who had the respect of senior managers must be doing something right. So what must you do to be able to sit at the same table with the same prestige as the head of finance or sales? Show some business sense.

Or, as one respondent opined, “You need to be a business person who happens to specialize in HR. Then and only then will you actually be part of the team.”

Number One Trait: Business Acumen
This anecdotal evidence is backed up by a more formal poll conducted by HR recruiting firm Gatti & Associates www.gattihr.com. It asked 350 HR executives across the country to list what they consider to be the top five competencies necessary for HR to have a seat at the executive table. At the top of the list:

Business acumen (the knowledge and understanding of business fundamentals)

Leadership skills (the ability to consult, coach, influence, and inspire)

Ability to think and act strategically and innovatively (anticipating a future and creating a path forward)

Technical human resource competence (knowledge of each key component in HR)

Ability to operate as a change agent (initiating and managing the change process)

Runner-up competencies included communication skills, the ability to build powerful relationships, integrity, and an orientation toward customers, both internal and external.

Respondents to this survey hammered home the idea that HR people needed to remove themselves from self-imposed backwaters of paperwork and routine and get out and about in the organization to see where they can help. One survey taker commented, “HR professionals must break out of the compliance and control roles and bring true value-added solutions and support to their organizations.”

HR people also need to understand corporate finances and speak the language senior managers speak: numbers. Said one bluntly, “HR professionals today need to… relentlessly address the financial impact that decisions make on a company.

Contemplate… then Act
Gatti & Associates believes contemplating the list above and analyzing how you stack up is “a great way to prepare for key steps in your career.” Key steps include performance reviews, planning your professional development, building your résumé, and preparing for interviews that take you into higher-level jobs.