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?
Schedule Your Consultation With Ed
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
My firm has engaged Ed numerous times since 2007 for a varied number of HR related issues. Every interaction with Ed has been excellent! He takes a well thought-out, pragmatic, and logical approach to HR issues based on many years of experience and education.
In the past, we have hired Ed for numerous HR related projects. He has always been timely and thorough with his completion of projects. More recently, though, we have utilized Ed in decision-making to resolve some issues. Ed is very professional and we rely on his expertise and knowledge to make sound decisions.
Ed is the consummate professional year in and year out. He posesses the very effective combination of deep expertise, project management, client empathy and saying-reporting-documenting what the project and client needs.
Ed’s Clients Include
Strategic HR Tips & Articles
I hear stories of people who believe integrating work into life means that they go to their child’s ballgame, pay attention when their child is at bat or on the field, then go back to checking emails. How can we be truly present for anything if we are ping-ponging...
When we think about how we get people to change their behaviors and follow the vision their leaders set, we see that we use inspiration to motivate them. But to change their behavior, we have to give them the skills they need. We do this through training. ... read the...
When we try to fix things as leaders, sometimes we get caught up in the idea that we have to be strategic visionaries, always thinking big and considering the implications for the whole organization. That’s true of a leader, but at the same time, we have to be...