BACKGROUND
According to the highly regarded Gartner Group, only 32% of HR leaders feel that their HR strategic planning process is fully integrated with their business’ planning process..
- This is both surprisingly low and highly disappointing.
This article is intended to serve as a resource for those HR leaders who should but do not have an HR Management Strategic Plan tied to their organization’s Strategic Business Plan. Hopefully, the article will also be beneficial to those HR teams that desire to review and improve their existing Strategic Plan.
DEFINITION
Let’s start with what is HRM Strategic Planning. Simply stated:
- HRM Strategic Planning is aligning HR strategies with the overall business strategy to achieve
- long-term goals. It’s about ensuring the right people, with the right skills, are in the right roles to drive business value. This includes activities like talent acquisition, employee development, succession planning, and performance management.
HR strategy defines which HR and workforce practices and activities to pursue and improve to deliver outcomes that will drive enterprise business goals.
KEY ASPECTS
- Aligning HR with business strategy: HR strategies should directly support the company’s overall objectives.
- Forecasting future workforce needs: Anticipating talent needs and ensuring the right skills are available.
- Talent acquisition and development: Attracting, hiring, and developing employees who can contribute to the company’s success.
- Succession planning: Identifying and preparing future leaders.
- Performance management: Aligning employee performance with organizational goals.
- Monitoring external factors: Staying informed about industry trends, economic conditions, and other factors that can impact the workforce.
KEY COMPONENTS OF AN HR STRATEGY
Every organization is unique, meaning each HR plan they craft is different. Specific areas that every HR strategy should try to have include:
- 1) HR mission statement
- An HR mission statement is a summary of an organization’s hiring intent. It’s where employers define what they’re trying to achieve and the foundation that informs your HR practices.
- 2) Organizational culture
- Syncing HR strategies with a company’s goals can make it easier for organizations to hire people who fit their ideal workplace culture. Organizational culture allows employers to determine the type of working environment they want. They base this information on the business and its values. Then, HR can use this culture to promote desired behaviors and skills.
- 3) Recruiting services and talent acquisition
- An HR strategy can identify key tactics for reaching and hiring qualified workers. The goal here is to guide the company toward its ideal candidates.
- Whether it’s advertising and outreach, job description copy, or brand image, these HR strategies inform how the company markets to potential employees.
- 4) Talent management and development
- It’s not enough to hire the right people. HR is also responsible for ensuring employees have the required skills for success. This preparation goes for onboarding new individuals and ongoing training for all team members. Human resource professionals can create development plans and educational opportunities to boost learning. This includes:
- Annual in-person training
- Regular email tips
- Ongoing training sessions
- In depth development on specific areas by subject matter experts, including from outside your organization
External experts typically provide a different perspective from in-house trainers/facilitators due to the former having broader experience and deeper knowledge.
- It’s not enough to hire the right people. HR is also responsible for ensuring employees have the required skills for success. This preparation goes for onboarding new individuals and ongoing training for all team members. Human resource professionals can create development plans and educational opportunities to boost learning. This includes:
- 5) Compensation and benefits
- A strong HR strategy should create competitive compensation and benefits plans. Senior executives can be part of the HR strategic building process to offer thoughts about wages. It’s also beneficial for employers to look at other companies to determine if their benefits, such as executive compensation packages, are retaining talented employees.
In Part 2, I’ll provide the benefits derived from having an HRM Strategic Plan and a step-by-step guide for developing your plan.
Author: Salvatore LoDico, SPHR
The HR Godfather TM
CEO, Trinity HR Consulting, Inc
Trinity HR provides retained searches and a full range of other HR management consulting services & solutions to clients throughout the US. Our clients include:
- Large public & private corporations, start-ups, SMBs, start-ups , & various size family-owned businesses & NFPs
- Diverse industries — manufacturing & providers of services
To schedule a NO COST, NO OBLIGATION conversation about your challenges & opportunities, plus how our Team’s expertise may be helpful, email me at SalLoDico@TrinityHR.net or call me at 856.905.1762.
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