I was recently fortunate to meet with several exceptional senior HR practitioners who in the course of our conversation, demonstrated a high level of commercial understanding of their organisation and how their roles were able to impact the business. It made me think about how commercial acumen is a very desirable trait in an HR professional at all levels. You see it in nearly every job description and on job ads but what exactly is it? How do you develop it as an HR Business Partner? And how can you demonstrate it when looking for a new role or promotion?

Business acumen for HR is much broader than just understanding how an organisation makes money, who its competitors are, and how to read a P&L (although that’s a solid start). It involves being able to analyse data and provide insights, the ability to develop and present a business case. Business acumen is a combination of commercial knowledge, skills, and experience that enables someone to understand key business issues, apply that understanding effectively, make informed decisions, and influence leaders quickly.

The HR practitioners I met with recently had taken the opportunity to step out of their senior HR roles for a period of time to manage a business unit or function in large complex businesses. Opportunities afforded to them because of the relationships and trust they had built with executives in those businesses over time. By being open to the opportunity, although at times a steep learning curve, they have come back into HR roles with an even deeper level of commercial understanding that they have then used to drive HR strategy and demonstrate HR’s importance to the business.

Is it possible to develop commercial acumen without stepping into a different role? Absolutely! Getting involved in projects with cross-functional teams where you are working with different parts of the business is a great way to develop relationships and your understanding of the business. Asking and being inquisitive with leaders further about their role and function. Project management can also build key skills in budgeting and financial literacy, communication skills, reporting, and delivery.

If you are just stepping into a HR Advisor or HR Business Partner role an important way you can build your business knowledge may be to be as visible as possible, especially initially. This may mean being in the office as often as possible, being contactable to your key stakeholders, hearing their conversations, and immersing yourself in the business. Being visible and learning the language and rhythms of the business will go a long way to building the trust and understanding you will need to progress in your role. Study, read, go to industry events, and look for opportunities to partner with different parts of the business.

How do you demonstrate your commercial understanding on your CV or in an interview, especially earlier on in your career? On your CV it is important to highlight details of the business and business unit you support - how big are they? What do they do? Who are your key stakeholders? Can you articulate your impact on the revenue line and/or bottom line? How did you make a difference?

By showcasing your commercial acumen, at any stage of your career you not only position yourself as a partner to the business but also as someone who understands the critical link between HR practices and overall business success.