Future Competencies for HR Professionals

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HR management is regarded as a function within the company which is occupied with employees’ and management recruitment, training, and professional relationship establishment. Management considers various aspects related to workforces, such as an organization’s development and improvement, performance management, employees’ safety, well-being, compensation, and benefits. In recent years, HR management has been departing from traditional administrative functions. The transformation of the HR industry is a direct response to the substantial reformation in business, which is generated by such a tendency as globalization. This transformation assumes the focus on human resources and their quality for effective competition in the global market. The purpose of this study is to investigate contemporary competencies required for HR professionals and the impact of globalization on compensation and benefits.

Competencies of HR Professionals

The majority of studies in the field of management devote significant attention to the concept of competency since in recent years its role in the HR field has been constantly increasing. The term “competency” can be defined as “necessary information, skills, ability and individual characteristics to do a job successfully;” these components are interrelated inside competency (Özdemir, Akatay, Eroğlu, 2015, p. 48).

There are two main directions in studying HR competencies. The first approach regards essential HR managers’ skills required for impactful work performance. These components were described as strategic management and time planning, business and technical knowledge in HR management and organizational development, leadership, inner consulting in the company, development, and appliance of HR programs (Özdemir, Akatay, Eroğlu, 2015). The capability of cooperation with other parts of the organization is regarded as an essential competency for HR professionals as well.

The second category of scholars investigates the competencies of all HR professionals. According to one of the most significant studies in this field, 23 general managers of various companies were interviewed concerning the substantial competencies of HR specialists for effective duty performance (Özdemir, Akatay, Eroğlu, 2015). Among all characteristics, such components were listed as an ability to structure interpersonal relations, dynamic decision making, HR and general business knowledge and skills, intuition and intelligence, forward-looking thinking, and flexibility for development. HR professionals are required analytic (data collection, its analysis, and result formulating) and social (leadership and interaction in the company) interdependent competencies, commitment to performed activities, and ability to work in a team, and observation of the organization’s ethical standards.

The HR field has significantly changed over the years. Modern HR specialists are required to regenerate competencies for professional management and consultancy, such as knowledge of relationship and communication management, competency identification ability, training, and educational skills, knowledge of contemporary HR applications and guidelines. Business and technical awareness along with adaptability to institutional and cultural development are essential as well.

Over several decades employers have been demanding from graduates in the HR industry such characteristics as active listening and advanced verbal skills, analytic and dynamic thinking, rapid response to urgent situations, and organizational skills. According to the modern approach, the combination of competencies can be defined as a competency model. Model elements, such as skills, behavioral patterns, and characteristics, are clearly specified; they are not only listed but interconnected as well. These models can be applied to individuals or companies for operation in HR management since HR professionals identify employees’ competencies, which permit them to manage their job efficiently.

Classification of Competencies

A credible study related to HR professionals’ competencies was conducted by the RBL group in 2012 (Özdemir, Akatay, Eroğlu, 2015). The leaders of this examination described six categories of competencies, though, after literature investigation, this number has been enlarged up to ten competencies. They are innovator; credible activist; manager and leader; HR management specialist; strategic manager; culture and structure architect; change manager; technology advocate; business knowledge specialist; and HR planner and operator (Özdemir, Akatay, Eroğlu, 2015).

The innovator competency implicates the creation of opportunities for the organization’s further development and achievements. The credible activist competency supposes leadership, the creation of effective cooperation, and stable professional relationships. The manager and leader competency implies workforce organization, hiring high-potential employees, and workplace relationship establishment. The HR management specialist competency is related to advanced technical knowledge in HR operation. This competency can be applied for workforce selection and training, legal inquiry, and compensation. The strategic manager competency supposes contribution to the decision-making process, surveillance over market development, and adaptation to various changes in the sphere of business culture.

The culture and structure architect competency implies the organization’s culture enhancement for superlative results achievement; it is additionally connected with workforce structure, evaluation system’s organization, and identification of employees’ advantages and talents. The change manager competency considers the ability to consult upper executive management in case of changes.

The technology advocate competency is defined by the effective application of technologies and social media to establish professional communication within the company. The business knowledge competency requires the highest-quality knowledge concerning business operation, competitors, customers’ demands and expectations, and the financial reliability of the company. The HR planner and operator competency imply elaboration of the company’s development program, dynamic response to organizational incidents, as well as analysis and prediction.

Impact of Globalization on Compensation and Benefits

HR management of multinational companies which successfully penetrated the global market and compete with other enterprises is currently affected by the influence of the globalization process. For effective competition in the international field, organizations should understand corporate cultural peculiarities, consider global business tendencies, and promote investments in human resources. The contemporary challenges for HR professionals are the employment of talented workers, encouragement of their creativity, comprehension, and acceptance of cultural identities, culture barriers’ abolition, and the establishment of compensation and benefits. Workforce rewarding affects employees’ satisfaction, and adequate compensation is “crucial for any organizational productivity and competitiveness” (Mabaso, Dlamini, 2017, p. 80).

Globalization held a significant impact on executive compensation in recent years; as the technological infrastructure of global enterprises is developing and export volume and foreign investments are increasing, the global market currently contributes to talents (Keller, Olney, 2018). HR management develops a system of compensations and benefits to support the creativity and work commitment of employees, which leads to the company’s prosperity on the global market.


In recent years the concept of competency has been growing influential in the HR industry. According to recent scientific studies, HR professionals require training and educational skills, knowledge of contemporary HR applications and guidelines, employees’ competency identification, knowledge of relationship and communication management, analytic and dynamic thinking, rapid response to urgent situations, and organizational skills to provide effective management. There are ten categories of HR competencies – the innovator, credible activist, manager and leader, HR management specialist, strategic manager, culture and structure architect, change manager, technology advocate, business knowledge specialist, and HR planner and operator.

Since the effect of globalization is currently increasing, international companies consider worldwide business tendencies to be represented in the global market. They improve the system of compensation and benefits for the employees, regarding their creative talents and strong work ethic as a priority.


  1. Keller, W., & Olney, W. W. (2018). Globalization and executive compensation (NBER Working Paper No. 23384). Web.
  2. Mabaso, C. M., & Dlamini, B. I. (2017). Impact of compensation and benefits on job satisfaction. Research Journal of Business Management, 11(2), 80-90. Web.
  3. Özdemir, S., Akatay A., & Eroğlu, U. (2015). Competencies of HR professionals: A study on the HR competencies of university students. Journal of Life Economics, 2(4), 47-60. Web.

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BusinessEssay. "Future Competencies for HR Professionals." December 16, 2022. https://business-essay.com/future-competencies-for-hr-professionals/.