In this article we will provide a definition, background, and a suggested path to begin the process of strategic human resources. There are a lot of benefits to HR in engaging in strategic planning. Developing a strategic HR plan begins with assessing the organization's current environment, creating statements of vision, values and mission post which the Implementation, monitoring and evaluation of the HR strategic plan is carried out. Let us walk you through it.
Strategic human resources management is a process that aims to create and implement HR programs that solve business problems and contribute directly to long-term business goals.
The role of HR management used to be primarily an administrative function that dealt with day-to-day tasks such as employee recruitment, selection, and managing employee benefits. Changes in the labor market and new business thinking require HR business strategies that include recruiting, retaining, and providing cultural leadership.
Strategic planning can present both great opportunities and challenges even for HR Pros. Nearly all global HR leaders are involved in strategic decision-making and make up the strategy team. Most HR professionals say that strategic planning is an integral part of their job. However, many HR professionals working in small and medium-sized organizations don't often get involved in functional or organizational strategic planning. To achieve long-term strategic HR goals and be a key participant in an organization's strategic plan process, HR departments might need to convince the senior management of the importance and contribution that HR can make.
The more HR is aligned with the overall business strategy, the better it can anticipate customer needs and maintain a competitive advantage. A business strategy is possible through careful planning, research, and development, including workforce culture, behaviors, and competencies.
Here are some of the benefits of strategic HR planning:
Strategic objectives are an essential part of strategic planning. These objectives should align with the organization's vision, mission, and overall strategy. Each organization will have its unique strategic objectives.
The following questions can be used by HR to determine if strategic objectives are a foundation for success:
ABC Company might, for example, identify in its strategic planning analysis the need to improve talent acquisition. This strategic objective is to create selection criteria to ensure the best-fit hiring and reduce filling time.
After identifying a key initiative, the organization should take the following steps:
A strategic objective can only be as effective as the overall strategic plan.
While many companies engage in strategic planning activities, few believe they successfully execute strategy. A survey conducted by the American Management Association and the Human Resources Institute found that only 3 percent of executives believed their companies were extremely successful in executing corporate strategies. In contrast, 62% said their organizations were moderately successful. Companies that had achieved high levels of success in executing their strategy were more likely to achieve positive revenue growth, market share, and customer satisfaction.
Although every company has its challenges in executing a strategy, the study revealed that it is crucial to master these areas to implement strategic plans successfully.
According to the study, lack of resources is the greatest obstacle to executing a strategy.
These four critical questions are the foundation of strategic planning:
HR is responsible for developing and promoting the culture, behaviors, and competencies required to achieve organizational goals.
These are some examples of results-oriented goals:
Establishing a system to track and evaluate progress towards achieving strategic objectives should be the final step. This is why most organizations hold quarterly or annual strategic reviews. The reviews help in achieving the following:
For some organizations, systems and tools like balanced scorecards and benchmarking can help keep track of results and keep them focused.