Human Resource, or HR strategy is a plan or roadmap followed by a company to solve its major challenges with the help of its talent. As Charles Spinelli says that HR strategy typically lays out the initiatives to leverage human capital to assist efforts associated with employee recruitment, on-boarding, performance and other goals. HR strategy does not just serve the HR department. In fact, when it is correctly developed and implemented, HR strategy can help HR teams, executives and employees alike. It usually has a profound effect on an entire organization.
Charles Spinelli underlines the steps involved in developing an HR strategy
The key purpose of HR strategy is to align the skills and goals of the employees with the business objectives. It focuses on planning out a robust set of measures, programs and KPIs that help reach those objectives. When a company has a clear HR strategy in place, it naturally improves many related areas like hiring, employee experience, on-boarding, performance evaluation and day-to-day employee support. It creates a ripple effect across all employee-focused programs. Today, new technologies like artificial intelligence, data analytics and automation are also transforming how HR strategies are developed and used. These tools help companies work faster, make better decisions and carry out HR activities on
Here are some of the key steps involved in developing an HR strategy:
- Step 1: Define success – HR professionals must work with the company management and executive team to define the goals of the business, and identify how the HR team can support them. For instance, if a company aims to globally expand, the HR team may focus on talent acquisition strategies that specifically cater to international markets.
- Step 2: Adapt goal – Compare the company’s overall goals with the current objectives of the HR team. Doing so can help identify what adjustments might be needed within the HR function to better align it with the broader business goals. For example, if a company aims to focus more on innovation, HR strategies can be designed to attract and retain innovative talent by hosting events like a company-wide hackathon.
- Step 3: Define measures- After the HR team determines what they want to achieve, they need to identify the measures that can help get there. If the goal is to enhance employee engagement, for instance, the HR team may focus on building employee recognition programs.
- Step 4: Gain buy-in – Management and employee buy-in is necessary for any HR programme to be executed. Therefore, the HR team needs to think of ways to advocate for their measures to achieve their goals. For example, they may host workshops to educate managers about the benefits of new performance appraisal methods, and gain their support in the process.
- Step 5: Measure success – A good HR strategy is driven by data. Therefore, the HR team must keep a close eye on the key performance indicators (KPIs) and share feedback with executives to maintain their continued support.
As per Charles Spinelli, successful teams prioritize creating an HR strategy to help align their own goals with the goals of the business.