What Is an HR Business Partner (HRBP) & How Can They Help Your Business?

An HR Business Partner (HRBP) is a human resource professional who actively integrates the business strategy with people management practices by aligning HR processes to the business's overall goals. HRBPs understand both the business and its people, making them essential in driving organizational change, fostering employee engagement, and building a culture that supports business goals.

“HRBPs act as change agents, coaches, and advisors, not only to HR, but also to business leaders, helping navigate the challenges of talent management, leadership development and organizational development,” says Christina Jankus, HRBP III at Paychex.

In other words, an HR Business Partner may be among the most significant support you can pursue for your organization.

What Is an HR Business Partner?

An HRBP can offer expertise and knowledge in human resource management but, more importantly, may be able to provide a "big picture" perspective. A crucial role of an HRBP is to help business owners and leaders understand where and how human resources can offer a strategic competitive advantage.

Generally, these knowledgeable third-party individuals work with an organization's leadership. They can help with aligning HR procedures and policies with the company's business goals.

Key areas of support and focus can include:

• HR compliance (local, state, federal)
• Classification of employees
• Data analysis and benchmarking
• Employee recruitment and retention

Simply adding another person to the HR team might not meet your challenges, particularly if that person lacks sufficient experience. In such cases, business leaders often turn to outsourcing.

HR Business Partner Models

HRBP models can vary depending on the company's needs. HRBP outsourcing models can be based on the principle that the HR department plays a crucial role in meeting a company's strategic goals.

While certain HR functions continue to be led by the in-house HR team (HR compliance obligations, employee benefits, payroll, etc.), an HRBP may focus on supporting a business in its effort to align recruitment, onboarding, employee experience, and human capital management with the company's broader goals.

This results in a more comprehensive perspective on how much HR strategy can contribute to long-term business strategy and planning.

How To Choose Between an Internal and Outsourced HRBP

Choosing between an internal and outsourced HRBP model depends on the specific needs, resources, and growth goals of your business:

• An in-house HRBP may bring continuity and a strong understanding of the company's culture, providing dedicated support and "always on" involvement. However, this option may require a more significant investment due to the cost of hiring a full-time role, including compensation, benefits, and professional development.
• Outsourcing an HRBP can offer flexibility and access to specialized expertise for a more manageable investment. This option is ideal for businesses seeking high-level HR insights or support on a consultative or project basis.

What Can an HR Business Partner Do?

Working with an HR business partner can open significant possibilities for growth. An HRBP can:

• Support improvement of the quality of your workforce by offering talent acquisition, screening, and interviewing support services
• Help you develop orientation programs, employee handbooks, management guides, performance evaluation forms, and schedules
• Support your HR compliance program
• Consult on what benefits programs might be best to help the business in reaching its goals
• Show you how to keep a secure, organized database of employee information

The HRBP always works with existing HR professionals and/or other important stakeholders. In addition, the human resources business partner helps foster an environment where the HR team is regarded as an essential strategic resource, not merely responsible for HR administrative duties.

What Does It Mean To Be a Strategic Business Partner?

HRBPs bring valuable analytical skills and often industry-specific knowledge to help create strategic plans that align with business objectives. Rather than just implementing HR programs, they can help shape the direction of HR initiatives to support the company's broader goals. For instance, if a company struggles with high turnover, an HRBP would help analyze exit data to find patterns and recommend strategies to improve retention.

While employers may recognize that improvements are needed, they often need help pinpointing the root causes of their HR challenges. HRBPs can provide this strategic support through data analysis and industry benchmarking, helping businesses understand where they stand in areas like compensation and benefits.

Ultimately, it's a strategic partnership that helps your business understand business needs and market conditions before making decisions.

HRBP Roles and Responsibilities

HRBP responsibilities can cover various HR strategic functions. Primarily, the HRBP provides expertise in HR support to a human resources department and business organization, focusing on short- and long-range objectives that help guide the business toward future flourishing.

Additional roles may include:

• Acting as a consultant in business efforts to restructure HR as needed to further company goals
• Supporting the growth of managers and employees through development and training programs
• Working alongside senior leadership to integrate HR strategies into broader business planning
• Providing resources for the recruitment and hiring of "high value" positions within the organization
• Assisting businesses with developing employee policies concerning performance management, onboarding, and retention
• Guiding HR directors and the organization through change management, helping support programs for employees to adapt to new structures and strategic directions

In essence, the HR business partner offers critical strategic support to help guide the overall company human resources policy and human resources.

Skills and Qualifications of an HRBP

While administrative tasks like processing forms, handling benefits, and managing compliance come to mind when considering HR, an HR business partner career path brings a different focus. HRBPs need a skill set that goes beyond traditional HR knowledge to make a real impact.

HR professionals at this level must be strategic, data-savvy, and business-minded. Here's how each core competency plays out in the HR business partner role.

Data Analysis and Application

HRBPs can't rely solely on instinct or anecdotal evidence. HRBPs must collect and analyze complex information to help make data-driven decisions.

Jankus says that HR analytics “involves gathering, analyzing, and reporting HR data to drive business results. It enables your organization to better understand your workforce, make decisions based on data, and measure the impact of a range of HR metrics, improving overall business performance.” Put another way, HR analytics is a data-driven approach to human resource management.

For instance, instead of making assumptions about employee engagement, an HRBP might look at metrics like absence rates, turnover, and employee Net Promoter Score (eNPS) to better diagnose areas for improvement.

Business Acumen

An HRBP working for a healthcare organization, for example, must understand the unique challenges in healthcare — from regulatory demands to patient care needs. This industry-specific insight helps them to better  design HR strategies that genuinely support business outcomes.

In some cases, HRBPs with solid business acumen have worked outside of HR, often in C-suite or management roles, before transitioning into HR. This background helps them to apply HR practices that align with industry-specific requirements, making them indispensable to business leadership.

AI and Tech Tools

Technical tools are integral to keeping a functioning HR department. HRBPs are increasingly using AI tools to streamline their work, from chatbots that handle routine employee questions to predictive tools that help spot engagement issues before they escalate.

Your HRBP must be comfortable implementing a Human Resources Information System (HRIS), as well as adapting to changing tech trends. But adopting the wrong technology can hurt productivity, so they must balance innovation with practical needs and compliance requirements.

People-Centered

People are at the heart of every successful organization, so advocating for employees' needs to help create a workplace where employees feel supported and valued is essential. HRBPs should be able to push back when necessary to protect employees' interests, preventing issues like unwanted turnover, workplace complaints, and low morale.

Additional Core HR Competencies

On top of these core areas, HRBPs can bring a variety of skills to the table, including:

• Stakeholder buy-in to build effective relationships across all levels of the organization
• Communication to convey policies, strategies, and changes clearly
• Change management to guide teams smoothly through transitions
• Talent development to identify and nurture high-potential employees
• Team collaboration to work seamlessly across departments and achieve HR goals

HR Business Partner vs. HR Manager and HR Generalist

While there can be some overlap, there are also generally distinct differences between the roles of HR managers, HR generalists, and HR business partners. Generally, HR managers and HR generalists are more "hands-on" about daily human resources operations.

Their administrative duties include routine tasks like recruitment, onboarding, benefits administration, and employee relations issues — all of which help keep HR moving smoothly and are critical to any broad HR strategy.

As noted, HR business partners take a big-picture view of the organization as they consult. They collaborate with a range of other organizational departments (and their managers) to:

• Recommend ways to help tailor plans to recruit individuals with specific skills (as needed by the company)
• Help businesses with developing strategy-focused communication
• Support company efforts to align human resources operations to a company's strategic objectives

Businesses that emphasize collaboration between HR business partners and managers often see meaningful results designed to boost business strategy and foster future growth.

Benefits of an HR Business Partner Model

Businesses that implement an HRBP model can benefit from specialized HR expertise and problem-solving skills. It brings your potential for growth and operational efficiency to a new level, enhancing both the employee experience and your organization's overall performance. Contracting with a service that provides HRBP help can help your company in many ways.

• Improve the quality of your workforce through skilled recruiting, screening, and interviewing support services
• Help design orientation and management programs, employee handbooks, performance evaluation forms, and schedules
• Support your company's compliance program through up-to-date knowledge of changing employment and safety laws
• Provide recommendations when it comes to competitive compensation
• Offer efficient HR processes with current technology
• Review and recommend ways to improve the secure and organized maintenance of your employee organization

The importance of an HR business partner can't be overstated. If you decide to seek outside HR help, a variety of versatile human resource solutions exist. But you will want a human resources business partner when looking to incorporate HR into your overall business strategy.

When To Work With an HRBP

It happens often enough: In the rush to grow a business, human resource management tasks are a low priority. For example, a startup might assign an employee initially hired to oversee marketing to assume HR tasks, too. While well-intentioned, this approach often falls short — without the knowledge or experience to take on this critical role, that person may overlook or mishandle critical areas.

Your business might need the consultation of an HR business partner if human resource functions are:

• Consuming too much of your time
• Not providing employees with a structured orientation program, detailed job descriptions, employee handbook, or the best possible benefit plans
• Jeopardizing worker safety and other legal aspects of business through non-compliance with federal and state regulations
• Getting in the way of revenue-generating activities

That's where a consultative human resources business partner comes in. An HRBP can provide recommendations to your business while still keeping your internal team accountable for decision-making and compliance obligations.

Cost-Benefit Analysis of Hiring an HRBP

Before investing in an HRBP model for your company, it's helpful to weigh the short- and long-term benefits against the cost. You'll face a financial commitment whether you go with an in-house or external solution.

However, for many businesses, the cost of hiring an HRBP is offset by the benefits they bring. From reducing turnover costs to minimizing legal risks, the return on investment can be significant.

HRBPs and Your Business

Regardless of industry or type of business, human resources is (and will always be) a key element in the organization's overall structure. But there is a "place at the table" for HR that goes beyond the important day-to-day responsibilities of an HR manager.

In this respect, a human resources business partner can assist a business with elevating the profile of HR so that company leaders are more willing to call upon the HR department's strengths and resources as part of their overall planning process.

Paychex HR Services helps you navigate HR challenges and opportunities so you can focus more on running your business. Also, as a professional employer organization, Paychex can help you simplify HR tasks, design more affordable Fortune 500-level benefits packages for your workforce, and provide access to HR advice and guidance. This guidance may be critical in contributing strategic organizational goals — a worthy goal for any business, especially those poised to grow dramatically in the coming months and years.