What is a human resources strategy?
An HR strategy is a plan you can create to manage your human capital in a way that complies with the company’s overall mission, values and goals. It addresses the essential areas of HR—hiring and training, benefits administration, performance appraisals and development opportunities. An effectiveHR policy can help maintain high levels of employee satisfaction, encourage referrals from team members and improve yourrecruiting strategy.
Successful HR strategies can improve transparency and govern workplace behaviors.Employees generally appreciate a clear, easy-to-understand performance standard. In addition to ensuring a safe, positive work environment, HR policies help your company comply with local and federal regulations concerning employee treatment.
Why is it important to have a human resources strategy in place?
Having an HR strategy helps ensure HR activities support your company’s long-term goals. It also governs how HR processes operate in your company. Strategic HR practices can also positively impact employee learning and improve the organization’s performance.
A successful HR strategy can:
- Improve employee and supervisor relations
- Increase the speed of HR policy implementation
- Foster a positive company culture and encourageworkplace ethics
- Ensure fair treatment of all team members
- Encourage employee collaboration and cooperation
- Reduce employee turnover
How to create a human resources strategy
Consider following these steps to create an effective HR strategy.
1. Understand your organization’s objectives
An effective HR strategy is closely linked to your organizational goals, so it’s important to understand the company’s objectives and mission.You might work closely with the management and executive team to identify and prioritize short- and long-term goals.
2. Evaluate your current capabilities
Perform a skills inventory for each employee to determine how employees can better contribute to the company’s main objectives. For example, you might use team members’ underutilized skills to expand service offerings and support growth. A detailed evaluation may also help you recognize your company’s strengths.
3. Perform a SWOT analysis
Conduct a strengths, weaknesses, opportunities and threats (SWOT) analysis—a strategic planning technique that identifies ways to support company growth. You can use this analysis to leverage your company’s strengths and capitalize on market opportunities. Identifying weaknesses can also help you create a plan to overcome them or minimize their impact.
4. Analyze your capabilities in comparison with the SWOT analysis
Evaluate your employees’ ability to support the company in capitalizing on opportunities and effectively resolving problems. Consider how you can prepare employees to serve the goals of the organization.
5. Assess your future HR needs
Determine what you need to achieve company goals. To address this, you may need to identify:
- New jobs to create and hire for
- Current skills gaps
- Training requirements to up skill current employees
- Necessary expansions to your HR team and practices
6. Evaluate whether additional tools are needed
Work with the IT department to audit your company’s hardware and software. Determine whether any tools could enable your employees to do their jobs more effectively. For example, tools for scheduling, project management and goal setting can help a team coordinate their efforts.
Consider productivity tools such as:
- Recruitment tools:These platforms streamline recruiting by connecting your company with an HR manager who can help with recruitment and onboarding, improve training and development and audit current HR practices.
- Employee recognition platforms: These apps provide public recognition for employees’ achievements. They’re similar to an internal social media platform and often include messaging features.
- Communication platforms: With messaging platforms, employees can communicate, collaborate and share information. Conversations and documents are also easily searchable.
- Candidate verification programs: Save time by screening new recruits online. Assessments can reduce HR paperwork and help you find quality candidates.
- Time management software: Implement a digital time clock to make it easier for your HR team to manage time records and improve attendance.
7. Implement your strategy
With a strategy in place, you can expand your workforce and develop employees’ skills to better meet the company’s needs.
Implement your HR strategy by doing the following:
- Recruiting applicants:Start searching for candidates with the skills your company needs.
- Organizing a selection process: Select relevant questions and assessments to evaluate candidates and their abilities during the interview process.
- Hiring candidates: After completing the necessary background checks, extend offers to top candidates.
- Designing an onboarding program: A comprehensive employee onboarding program can improve retention and help new hires feel confident in their roles.
8. Evaluate your process
Regularly review your HR strategy, identify areas for improvement and evaluate whether the changes are supporting your company’s growth. Make adjustments if needed, and reevaluate the strategy. Keep in mind that HR strategies often take time to implement.
Metrics that can help you quantify your workforce’s performance include:
- Employee retention rate
- Overall company growth
- Feedback from managers, employees and clients
- Financial performance index
- Employee satisfaction surveys
- Goal-based metrics
Best practices for human resources strategies
Consider implementing these best practices for HR strategies in your organization:
- HR professionals should be involved. The HR team typically helps create and implement the HR strategy.
- HR practices should align with strategy. After creating an HR strategic plan, evaluate all initiatives and practices to ensure they align with the new strategy.
- Strategies should be measured. Monitor and measure the results of your HR strategies to ensure your key performance indicators (KPIs) are moving in the right direction.
- Management must agree. Your HR strategy must have the support of the management team, an appropriate budget and any technology needed to succeed.
FAQs about human resources strategies
What are the four basic functions of human resource management?
The four basic functions of human resource management (HRM) are:
- Employee recruitment: This includes recruiting candidates and selecting the right person based on a careful evaluation process. You can recruit internally and externally or outsource the process to a staffing company.
- Development of human resource strategies: Development generally involves training employees through ongoing educational programs that encourage employee and company growth.
- Motivation: The HR team should encourage employees to boost performance with adequate compensation and benefits. Other motivational strategies include casual team gatherings, recognition and rewards.
- Maintenance: During this phase, HR creates a safe and healthy workplace by enforcing and communicating policies.
What are some examples of HR strategies?
HR management strategies could include:
- Competitive salaries
- Comprehensive benefit packages
- Focus on employee well-being
- Promotional opportunities
- Dedication to communication
- Growth opportunities such as ongoing education
- Socially responsible hiring and employee retention policies
Do HR teams decide the amount of compensation an employee receives?
Every company has separate policies, but an employee’s pay is typically determined by their manager and other supervisors. If performance is a factor, the HR manager may have some influence on employees’ salaries.
How long should an HR policy be?
The length of an HR policy may vary based on company size, industry security practices and the number of job types within the organization. Components may include:
- Meal and break guidelines
- Interpersonal relationship policies
- Disciplinary actions
- Guidance regarding anti-harassment and anti discrimination laws
- An employee handbook
