HR Strategy: Charting the Course of HR's Role in Your Organization
In 2015 the University of Michigan published results of a study that looked at what impact HR competency has on business performance. They did the study repeatedly over the course of about 16 years, and this is what they found:
If HR really wants to impact the business, they have to show a strategic contribution.
What is Strategic Human Resource Management?
There are six key areas where HR can contribute to the overall strategic business plan, but rarely does. The rest of the executives in any organization are concerned with these 6 items, and HR needs to be concerned about them too.
Strategic Human Resources planning can only be effective in meeting organizational goals if it can match its strategic plan to the strategic plan of the company. The first piece to that is knowing what market trends the organization is dealing with.
Key Business Metrics
Why Is Strategic Human Resource Planning Important?
71% of CEOs believe their employees are the most important factor in their company’s economic success. The Human Resources planning process is simply the process by which organizations determine how to properly staff to meet business needs and customer demands. Despite the need, nearly a third of HR professionals say their departments need to improve strategic alignment!
Benefits of Strategic HR Management
According to SHRM, the closer the alignment between HR and an organization’s overall business strategy, the better the company’s ability to anticipate and respond to customer needs and maintain a competitive advantage. Research, planning, and development involving workforce culture, behaviors, and competencies promote the successful execution of business strategy.
What Are The Objectives of Strategic HR Management?
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How Do You Develop A Strategic HR Plan?
Based on the Michigan study, there are a few basic steps HR can take to develop a human resources strategic plan that addresses each of these areas.
1. Decide How Many Plans You Need
Depending on the size of the organization, you may need more than one HR strategic plan.
2. Look At The List of 6 Areas & Prioritize
Which area is the most important one that needs to be attacked right away?
3. Identify Your Competitive Advantage & How to Measure It
What buttons are you pushing at what point in time and how is that creating an impact?
4. Decide On Your Desired Culture
What kind of culture do you need to work on to support your key business metrics?
5. Create the Tactical Piece of the Plan
How will your compensation, benefits, recognition, and & career opportunities impact each of the six areas?
6. Decide How You Will Implement the Plan
This is the most critical piece of all. Who will do what and when? How will you know if it is successful?
How Ed Krow Has Helped Other Businesses Create An HR Strategic Plan
“Ed’s work is thorough and precise and his insight is both thoughtful and candid. I found working with Ed to be refreshing. He approaches his engagements in a highly professional yet approachable manner which I find allows for a much more fluid flow of information and guidance. I highly recommend Ed for advisement on even the most sensitive matters because he will take the time to understand your business and your immediate needs and then apply his experience to derive a cost-effective solution that works.”
CEO, Campus Door Holdings, Inc.
“I highly recommend Ed to any meeting planner, organization, or event seeking an engaging, highly professional, and informative leadership development speaker. Ed was one of our speakers for our Annual Conference that pivoted to virtual in a matter of weeks during the COVID-19 pandemic. Ed was one of the easiest speakers to work with during this major pivot, quickly pivoting his own presentation to suit the virtual format. Ed delivered the presentation as flawlessly and energetically as if he were in a room full of attendees, which made for a great experience for our attendees and resulted in Ed being one of our most highly-rated speakers.”
Director of Education, American Alliance of Orthopaedic Executives
“Ed Krow demonstrates an expertise, trust, and dependability above reproach. Over the past 7 years, I have called upon Ed to co-deliver a supervisory training program as well as refer him to several clients for various HR services. In each case, he provided great service – only adding value to the client and making my firm look good as well. I’d highly recommend Ed for HR consulting including general HR projects and especially affirmative action.”
President, Success Performance Solutions
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