The HR Competency Framework
The HR Competency Framework
The HR Competency Framework
HR Competency
Framework
Professional HR
Competency Framework
Strategic & T-shaped HR Professionals Core HR Competencies
Functional HR Competencies
It is no longer enough to specialize in one single functional HR
competency. HR Professionals need to become a generalist in four
core HR competencies and a specialist in at least one functional
competency.
Functional
Competencies
HR Professionals need to become
a specialist in at least one
functional competency and a
generalist in four core HR
competencies.
Professional HR
Competency Framework
What is a competency framework? How are competencies structured?
A competency is a cluster of skills, knowledge, and expertise In this framework, a competency is split up into multiple
needed to become efficient at performing a specific job. constructs. Each construct consists of several (sub) dimensions.
The aggregate of competencies that are important to a particular For example, being data-driven is divided into two constructs:
role or (HR) function is what we call a competency model. data literacy and analytics translator. Each of these constructs has
(sub) dimensions. Sub dimensions of data literacy include the
A competency model provides a tangible framework for
ability to read data, apply data, and communicate data.
performance management, skill gap analysis, upskilling, and
provides a template for what the ideal (HR) organization will look Each dimension is scored on three proficiency levels, making it
like. easy to assess the proficiency of individuals or groups.
CORE HR COMPETENCY #1
Data-Driven
Data-Driven
Definition
Data-driven, also known as evidence-based, is the ability to read, apply, create, and communicate data into valuable
information to influence decision-making processes.
Description
Data has never been more important in how we do business. Rather, they need to be able to work with data specialists, assess their
Departments like finance, marketing, and sales live and breathe data. findings and results, and effectively translate these insights into actions
Their strategic impact is often directly related to their performance that create business value. This is what we define as the analytics
tracking budget and actuals (which are often sales results, return on
Besides understanding internal data sources, the HR professional
investment, or return on ad spend). Compared to these disciplines, HR is
should also be able to leverage the insights from data from outside of
still catching up.
the organization by staying informed with the latest research. These
In an HR context, data includes the use of metrics, KPIs, scorecards, and evidence-based practices will help HR focus on issues that will create
dashboards to make informed decisions. This requires the HR tangible value for the organization.
1 Reading data Occasionally uses data in a mostly Regularly leverages descriptive data Frequently leverages descriptive data analysis
ad-hoc fashion by using scorecards analysis · To set targets
and accessing dashboards. · To set targets · To answer questions
· To answer questions · To guide daily operations
· To provide context
2 Applying data Struggles to make sense of data Turns data into information on a regular Turns data into value-adding information through diagnostic analysis
basis within their own specialization based on various available data (reports, scorecards, and dynamic
dashboards)
3 Creating data Occasionally establishes KPIs to Regularly establishes both personal and Whenever it adds value, creates KPI-driven activities, projects, and
measure and increase both personal with stakeholders KPIs strategies that seamlessly connect with business priorities
and stakeholder effectiveness. · To set targets · Develops and interpret strategic plans
· To measure effectiveness · Connect them to KPIs
· To measure goal attainment · Identify current scores
· Set target scores
4 Communicating data Struggles to show stakeholders how Is able to show stakeholders how HR Shows stakeholders how HR contributes to business strategy and
HR contributes to business strategy contributes to business strategy using data results through data-fueled cause-and-effect relationships
using data
5 Practicing evidence-based Questions unproven assumptions. Validates assumptions using data. Validates assumptions using data and uses research and data
HR analysis in daily tasks and operation
Data-Driven
Analytics Translation
1 Bridging analytics Struggles to explain the relationship Creates some impact by connecting people Plays a critical role in connecting people analytics insights to the
between business and HR using people analytics insights to operational expertise of operational expertise of business and HR stakeholders by
insights business and HR stakeholders translating them to impact at scale
2 Driving adoption Struggles to accurately explain what Understands people analytics and the value of Drives the adoption of people analytics and the use of data in both
people analytics is and rarely creates using data, and occasionally leverages this to HR and the business through a deep understanding and by involving
impact by leveraging data; does not create more impact and explaining it to peers and business stakeholders
drive adoption
3 Leveraging data Struggles to effectively read, apply, and Has average data literacy and derives Actively identifies how data analysis can be leveraged to make
communicate data as information in data-driven insights within their HR better decisions in their daily work
most HR contexts. specialization
Creates constant value by reading, applying, and communicating
data as information in order to influence decision-making processes
in HR and the business
4 Identifying Struggles to identify HR issues in which Occasionally shares HR issues that can be Actively raises relevant HR and business issues that can be solved
opportunities further data analysis can add value solved with data to the people analytics team with data to the people analytics team or other specialists
or other specialists
5 Prioritization Unable to effectively separate core Is able to separate core issues from side issues Instinctively identifies core issues and separate them from side
issues from side issues when asked to do so issues
6 Evidence-based Occasionally seeks out new knowledge Actively acquires new knowledge of the latest Maintains up-to-date knowledge of the latest HR and management
practices of the latest HR and management HR and management research and best research and best practices and actively applies it in their daily work
research and best practices practices to create value for stakeholders and the end-customer
CORE HR COMPETENCY #2
Business Acumen
Business Acumen
Definition
Business acumen, also known as business savvy or business sense, is the ability to translate the organization’s
purpose, mission, goals, and business context into strategy, positioning HR policies and activities to best serve the
organization’s interests.
Description
Business acumen is the HR competency that has received the most To build business acumen, the HR professional first needs to understand
attention in the past three decades. Since the introduction of the the global context of work, and the internal organizational dynamics, a
business partner role, HR has had to upskill in business acumen, and practice we call context interpretation.
1 Environmental Has limited understanding of the external Has intermediate understanding of the social, Has deep understanding of the social, cultural, technological,
awareness environment in which the organization cultural, technological, political, economic, and political, economic, and legal context in which the organization
operates; does not weigh these factors legal context in which the organization operates operates and includes these factors in their decision-making
into decision-making and lets these factors influence their (HR)
decision-making on a regular basis.
2 Mobilizing Rarely spots external threats and Occasionally spots and takes action on external Actively spots external threats that inhibit the company from
against threats developments that may impact HR policies threats and developments that may impact HR reaching its goals and takes action within the HR domain to limit
policies their impact
3 Organizational Limited understanding of the Can effortlessly explain the organization’s primary Understands the organization’s primary process
understanding organization’s primary processes and its processes and its place in the value chain
Understands the position of the organization in the whole
place in the value chain
product/service value chain; knows the roles of its partners (e.g.,
suppliers, vendors, distributors) and what differentiates them
Has an intermediate understanding of Is able to apply common management theories to examine the
management theories (i.e., resource-based view, organization and organization challenges (i.e., resource-based
transaction cost economics) view, transaction cost economic, resource dependency theory,
strategic management theory, organizational learning,
institutional theory)
4 Industry Some understanding of how the Intermediate understanding of how the Has deep understanding of how the organization differentiates
understanding organization differentiate itself from organization differentiates itself from its itself from its competition and actively leverages this to make
competition competition HR policies more effective
Business Acumen
Customer Orientation
1 External customer Limited understanding of the Intermediate understanding of the Deeply understands the end-customer’s needs and responsibilities
alignment end-customer end-customer’s needs and responsibilities and and is able to explain the different ways the organization adds
the ways the organization adds value to the value to the customer
customer
Positions HR activities to better serve the Aligns HR activities, policies, and strategies to (help the business)
end-customer serve the end-customer in better ways
2 Internal customer Limited capacity to effectively market Is able to effectively market HR to both internal Speaks the language of the business and effectively markets HR to
alignment HR internally and externally and external stakeholders both internal stakeholders (e.g., through HR costing and ROI) and
external stakeholders (e.g., through communities, employer
branding, employee value propositions)
3 Gathering Has limited connection to internal Goes beyond direct internal customers and Continuously searches for relevant connections in the
information customers; only deals with people who direct stakeholders; makes active effort to organizational ecosystem to better understand different internal
are important in execution of their understand whole internal stakeholder and external stakeholders and, as a result, organizational needs
tasks ecosystem
4 Customer-driven Limited understanding of design Has intermediate understanding of design Has deep understanding of design thinking and lean principles and
practices thinking and their application thinking and regularly applies its principles to applies them when appropriate to optimize processes and
optimize processes and customer experience customer experience
Business Acumen
Strategic Co-creation
1 Strategic behavior Displays limited consideration for Displays some strategic behaviors: Displays strong strategic behaviors:
issues outside their immediate · Anticipates threats and opportunities on the · Anticipates threats and opportunities on the periphery of
responsibility periphery of the business the business
· Challenges assumptions and encourage · Challenges assumptions and encourage divergent points of
divergent points of view view
· Interprets complex and conflicting · Interprets complex and conflicting information
information · Balances informed decision-making with swift action
· Aligns by finding common ground and achieving buy-in
· Continuously learns and searches for new information and
trends
2 Strategic Has limited understanding of the Has advanced understanding of the Has deep understanding of the organizational strategy, including
understanding organizational strategy and goals. organizational strategy and goals. organizational goals and key sources of competitive advantage.
3 Strategic alignment Rarely spots HR opportunities that Occasionally spots HR opportunities that can Actively spots HR opportunities that can help the business be
can help the business be more help the business be more competitive and takes more competitive and successfully leverages them
competitive action to leverage them.
Constantly looks for opportunities to integrate HR practices to
create synergies towards key business goals
4 Strategic contribution Rarely contributes to strategy Occasionally contributes to strategy discussion Contributes to strategy discussions and decision-making
discussion and decision-making and decision-making
Aligns with stakeholders to create overview of interests and
business priorities and manages them to advance HR policies
that help boost the business
CORE HR COMPETENCY #3
Digital Integration
Digital Integration
Definition
Digital integration is the ability to leverage technology to increase efficiency and to drive HR and business value.
Description
Though technology is everywhere in business, digital initiatives often Digital integration requires awareness of available technology both
operate independently from each other in HR. In the future, digital tools inside and outside of the organization, as well as the ability to integrate
will be seamlessly integrated with the way we work to the degree that it technology to make HR more effective and drive business value. Digital
will be nearly impossible to remember how anyone got anything done integration includes technological awareness first, which is the
“the old way”. understanding of the digital landscape and its role in the world of work.
At the same time, digital solutions will be integrated horizontally, The modern HR professional is not only aware of the role of technology
meaning that all HR data over the full employee journey is integrated but also practices technology embedding, meaning that they leverage
with each other, leading to a much better HR service delivery, high technology to enable the HR and business strategy.
1 Technological Has limited understanding of technological Has an intermediate understanding of Has deep understanding of technological trends outside of the
experience trends outside of the organization technological trends outside of the organization and how they can potentially impact the
organization and how they could impact organization and HR policies; has the proficiency to explain
the business and HR policies. these to others in detail
Occasionally reads, connect with peers, Stays up to date on technological innovation through a strong
learns, or attends conferences with the set of information collecting behaviors, including networking,
specific aim of staying up to date on learning, reading, and actively engaging vendors
technological developments
2 Technology Has limited understanding of how technology Stays informed with HR technology, is Has deep understanding of the role of technology in the current
positioning might impact the future of work in their familiar with current HR systems, and is HR landscape:
organization as well as how it will impact their able to explain how technology might · Understands the HR technology vendor landscape for their
area of expertise impact the future of work in their specialization
organization as well as how it will impact · Is informed on how other organizations leverage HR
their area of expertise. technology
· Familiar with current HR systems
· Has an informed opinion on the current state of HR tech in
and outside of the organization
Occasionally identifies opportunities for Spots opportunities to leverage technology within the
technology to be leveraged within the organizational and HR context
organizational context
3 Technology savvy Has limited understanding of the most Has an intermediate understanding of Has deep understanding of different technological tools and
frequently used software applications in their different technological tools and applies applications; quickly learns how to use new tools
daily work them in their daily work
Digital Integration
Technological Embedding
Technological Embedding - Professional Performance
Dimensions Elementary performance Intermediate performance Proficient performance (advanced)
(beginner) (intermediate)
1 Strategic technology Has limited understanding of Has intermediate understanding of how Had deep understanding of how technology enables & drives HR activities, HR
how technology can drive HR technology can drive HR efficiencies and strategy, and business strategy and is actively involved in projects that drive HR
efficiencies effectiveness efficiencies and effectiveness.
2 Technology roadmap Has limited understanding of Has a general understanding of the Understands the organization’s digital HR maturity level:
how technological maturity organization’s technological roadmap and · Identifies key components of digital maturity
and the current stage of the next steps to create a more digital mature · Assesses maturity on all components
organization organization · Is involved in activities, projects, or roadmap drafting to increase maturity
· Actively contributes to maturing the organization through their own role and HR
specialization
3 Customer-centric Applies design thinking Applies basic design thinking techniques Applies the design thinking process and techniques to
solutions techniques to gather to gather information and interpret · Gathering information from customers and users through discovery techniques
information and interpret findings to define, test, and iterate (digital) · Interpreting findings and defining user requirements
findings to solve problems solution requirements · Spotting opportunities through ideation
· Prototyping, testing, evaluating, and iterating digital solutions
4 Technology selection Has limited understanding of Has an intermediate understanding of the Understands the HR technology acquisition cycle, including mission and vision
the HR technology acquisition HR technology acquisition process development, alignment on requirements, criteria selection, and criteria evaluation
process.
5 Technology Has limited understanding of Understands the added value of new Actively searches for ways to improve HR processes using technology
contribution the added value of new digital solutions and how they impact HR
Is able to effortlessly specify the added value of new digital solutions and their impact
(software) solutions and their processes and strategic priorities
on HR and business goals
impact on strategic goals
6 Technology Has a limited understanding of Has an intermediate understanding of Has a deep understanding of digital solution implementation processes and all actions
implementation digital solution implementation digital solution implementation processes, involved:
processes including: · Plan and align
· Planning · Define and design
· Designing · Configure and test
· Configuring · Train and communicate
· Deploy and sustain
Digital Integration
Digital Culture Building
1 Digital fostering Has limited digital capabilities. Is involved in upskilling initiatives and other Actively participates in building a more digital HR culture
digital capability building activities. by setting an example, coaching others, helping to unlearn
bad habits, and contributing to digital initiatives.
2 Digital understanding Has limited understanding of how digital Understands how digital capabilities drive Has deep understanding how digital capabilities drive
capabilities drive long-term value long-term sustainable value long-term, sustainable value for the organization and is
able to effectively communicate this to key stakeholders
3 Digital value chain Has limited understanding of the changes that Has intermediate understanding of the changes Has a deep understanding of the changes that a digital
a digital integration brings to the operating that digital integration brings to the operating integration brings to the operating model and service
model and service deliveries, for both HR as model and service deliveries for both HR and the deliveries for both HR and the organization
well as for the organization organization
4 Digital leadership Has limited understanding of digital Has intermediate understanding of digital Is a digital leader in their HR specialization and how it
developments within their HR specialization developments within their HR specialization connects to other specialization; promotes digital values
through their business partnering activities
5 Digital capability building Contributes to workforce-wide digital Contributes to workforce-wide digital upskilling Actively contributes to workforce-wide digital upskilling
upskilling in limited capacity by setting an example, coaching stakeholders, by setting an example, coaching stakeholders, encouraging
encouraging leaders to set an example, helping to leaders to set an example, helping to unlearn bad habits,
unlearn bad habits, and by contributing to and by contributing to organization-wide digital initiatives
organization-wide digital initiatives in an impactful and strategic way.
6 Learning champion Has limited involvement in building digital Is involved in improving digital learning and Actively contributes to interventions that increase
capabilities and stimulating innovation in the stimulating innovation in the organization learning and innovation:
organization · Implements HR practices that support innovation
· Implements HR practices that support learning and
knowledge sharing
CORE HR COMPETENCY #4
People’s Advocate
People’s Advocate
Definition
The people’s advocate creates a strong internal culture, gets the best out of people, and acts as a trusted champion
and communications expert.
Description
A better name for human resource management is people management. We go beyond this and define an effective people’s advocate as
It is HR’s role to help get the best out of people and make the someone who is primarily a culture builder, in the sense that they work
organization—a collection of different people with different interests to continuously shape a desired organizational culture. This is a culture
and personalities—a place where everyone thrives and works towards a in which many different people flourish and thrive.
common goal.
In addition to nurturing this culture, they also have effective people
That is what the people’s advocate role entails. Traditionally, the practices, both for themselves (i.e., they work efficiently) and for others
people’s advocate is the role that the HR profession has focused on and (i.e., they are an effective HR professional). They are also the workplace
is most skilled in. They are often perceived as a trusted partner who is champion: a credible, trusted, and ethical workplace champion who
inclusive, promotes diversity, creates an inclusive work environment, advocates for the overlooked.
1 Culture expert Understands the current organizational Understands the current and desired Has deep understanding of the current and desired
culture organizational culture organizational culture, what constitutes this culture,
and how these values are sustained and reinforced
through current talent and leadership practices
Occasionally promotes the desired organizational Actively promotes the desired culture through their
culture actions, HR specializations, and business partnering
activities
Occasionally supports leaders to reinforce desired Actively supports leaders to reinforce desired
values and behaviors organizational values and behaviors
2 D&I promotor Occasionally promotes diversity and fosters Actively promotes diversity and fosters inclusion Actively promotes diversity and fosters inclusion
inclusion; is fair and transparent, and cares through their HR specialization; is fair and through their HR specialization and business
about people as individuals transparent, and cares about people as individuals partnering activities; is fair and transparent, cares
about people as individuals, and taking a pragmatic and
business-first approach
3 Culture navigator Has limited understanding of intercultural and Works effectively with intercultural differences Works effectively with intercultural differences and
interorganizational differences and interorganizational subcultures interorganizational subcultures; is able to manage and
balance competing cultural values through their HR
specialization and business partnering activities to
create an effective organization
4 Culture value creator Is able to spot conflicts before they become Is able to effectively spot and resolve conflicts Effectively resolves conflict, reconciles differences,
problematic and involves the right superiors before they become problematic and creates win-win situations
to have them resolved
People’s Advocate
People Practices
1 Informed practitioner Occasionally acquires new knowledge of HR Actively acquires new knowledge of HR trends and Maintains up-to-date knowledge of HR trends and
trends and technology technology technology to actively apply it in their daily work,
creating value for stakeholders and the end-customer
2 Evidence-based Occasionally acquires new knowledge of the Actively acquires new knowledge of the latest HR Maintains up-to-date knowledge of the latest HR and
practitioner latest HR and management research and best and management research and best practices management research and best practices to actively
practices apply it in their daily work, creating value for
stakeholders and the end-customer
3 Strategic practitioner Has limited understanding of the strategic HR Has intermediate understanding of the strategic Continuously stives to realize strategic HR objectives
objectives HR objectives and strives to realize them through through their HR specialization and business partnering
their HR specialization activities
4 Improving practitioner Displays limited ability to improve their work Continuously improves their work in an efficient Continuously improves their work in an efficient way
and sparsely looks for direct feedback on way, welcomes feedback from peers, subordinates, and is widely considered a highly productive and
their performance and superiors impactful professional
5 Value creator Satisfies stakeholders Deeply understands the end-customer and Aligns their activities with the end-customer’s interest,
consistently adds value to stakeholders adds value to stakeholders, and helps realize business
outcomes
People’s Advocate
Workplace Champion
1 Credible practitioner Is regarded by colleagues as credible Is regarded by colleagues, peers, Has a reputation of being highly credible, both amongst colleagues
subordinates, and superiors as credible and line managers, but also amongst peers, subordinates, and
superiors
2 Trustworthy practitioner Is regarded by colleagues as Is regarded by colleagues, peers, Has a reputation of being highly trustworthy and a trust builder for
trustworthy subordinates, and superiors as trustworthy all activities they are involved in, both amongst colleagues and line
managers, but also amongst peers, subordinates, and superiors
3 Ethical practitioner Is regarded by colleagues to operate Is regarded by colleagues, peers, Has a reputation of operating in a transparent and ethical way, both
transparently and ethically subordinates, and superiors to operate in a amongst colleagues and line managers, but also peers, subordinates,
transparent and ethical way and superiors
4 Informed practitioner Occasionally acquires new Actively acquires new knowledge of global Maintains up-to-date knowledge of global and local labor and
knowledge of global and local labor and local labor and privacy regulation privacy regulation and actively applies it in their daily work to
and privacy regulation create value for stakeholders and the end-customer
5 Compliant practitioner Has limited understanding of Practices HR in a way that is compliant Practices HR in a way that is compliant with regulation and errs on
compliancy and regulations with regulation and errs on the side of the side of caution while trying to maximize their contribution to
caution strategic HR and business goals
6 Paradox navigator Advocates the interests of Balances individual, group, and Balances individual, group, and organizational interests, advocates
overlooked individuals and groups organizational interests and advocates the the interest of overlooked individuals and groups; engages in
interest of overlooked individuals and pragmatic bending to ensure continuity.
groups
Effectively navigates paradoxes (long term vs. short term, employee
vs. employer, individual vs. community, objectives vs. relationships)
and consistently creates win-win situations
People’s Advocate
Communications Expert
1 Eloquent practitioner Delivers well-organized and Delivers well-organized, persuasive, · Is able to improvise structured arguments, present them with
impactful presentations impactful presentations that inspire and impact, and convince and inspire.
call others to action · Is prepared to deliver well-organized, impactful presentations that
inspire and lead to action
2 Knowledge transferer Limited facilitation of knowledge Facilitates the transfer of knowledge Actively facilitates the transfer of knowledge to create impact for both
transfer HR and the business
3 Feedback giver Provides accurate feedback when Provides open, honest, and appropriate Provides open, honest, and appropriate feedback to their peers,
asked feedback to their peers, subordinates, and subordinates, and superiors to help them improve; capitalizes on
superiors to help them improve opportunities to build a culture of continuous feedback and
improvement
4 Conflict resolver Resolves communication difficulties Actively resolves communication Actively resolves communication difficulties within the organization
when it helps them achieve the goal difficulties within the organization and connects unconnected others who may benefit from the
of their role introduction to enable innovation
5 Inquisitive practitioner Focuses mostly on their own role Shows interest in and seeks to understand Shows interest, is inquisitive, and seeks to understand diverse roles,
adjacent roles thereby visibly amplifying their impact
AIHR | Academy to Innovate HR
At the Academy to Innovate HR (AIHR), it is our mission to make HR
future-proof by offering world-class, online education programs available
anywhere, anytime.