Poor ratings of the business performance and service quality of HR by internal stakeholders prompted the CEO of this biotech company to promote a long-term line executive to the role of Senior Vice President of HR. His charge: increase the value of the HR function and better align the function with the needs of the business.
To measure the value HR was delivering to business units and to identify strengths, gaps and action priorities, the client partnered with Metrus Group to conduct an Internal Value Assessment. The IVA was customized to include metrics that focused on how well the function was performing on core deliverables and service dimensions, as well as how effectively it was creating and delivering value to the business. In addition, the assessment examined which HR activities were perceived by the line to be of greatest value. The assessment was administered globally to internal stakeholders and repeated 12 months later.
Analysis of the assessment results revealed gaps in several key dimensions that were pinpointed for action, including poor delivery of talent acquisition services and a lack of understanding by HR of business units’ needs.
Facilitated by Metrus Group, a focus group was held to further explore these issues with managers who had provided negative feedback. The managers wanted HR business partners who can be strategic partners, who are familiar with and understand their business goals and who can advise them from a human capital perspective.
The HR leadership team took action based on recommendations provided by Metrus Group, including evaluating and restructuring the HR business partner role to have less emphasis on general HR support and more emphasis on analytics and strategic planning involvement; taking a talent inventory to measure whether critical teams have the skills and competencies needed for the future organization, not just the present; and enhancing HR business partners’ knowledge of the roles and operations of the groups that they support through comprehensive orientation/training and consistent participation in client business unit meetings.
As a result of these several initiatives, the HR client saw a 25-point increase in ratings on the quality of talent acquisition services and a 23-point increase in ratings on their understanding of the business needs. Subsequently, the HR function has been ranked as a high value delivering function by the company’s executive suite and internal stakeholders.