Strategic human resource management is the connection between a company’s human resources and its strategies, objectives, and goals. The aim of strategic human resource management is to: Show
In order for strategic human resource management to be effective, human resources (HR) must play a vital role as a strategic partner when company policies are created and implemented. Strategic HR can be demonstrated throughout different activities, such as hiring, training, and rewarding employees. Strategic HR involves looking at ways that human resources can make a direct impact on a company’s growth. HR personnel need to adopt a strategic approach to developing and retaining employees to meet the needs of the company’s long-term plans. HR issues can be a difficult hurdle to cross for many companies, there are all kinds of different components that can confuse business owners and cause them to make ineffective decisions that slow down the operations for their employees as well as their business. To ensure that you never have to worry about being lost on HR related issues again, click the download button below for your one-page document of the 7 steps to strategic human resource management. Why is strategic human resource management important?Companies are more likely to be successful when all teams are working towards the same objectives. Strategic HR carries out analysis of employees and determines the actions required to increase their value to the company. Strategic human resource management also uses the results of this analysis to develop HR techniques to address employee weaknesses. The following are benefits of strategic human resource management:
Seven steps to strategic human resource managementStrategic human resource management is key for the retention and development of quality staff. It’s likely that employees will feel valued and want to stay with a company that places a premium on employee retention and engagement. Before you implement strategic human resource management, you will need to create a strategic HR planning process using the steps below: Since the success of strategic HR is dependent on how well it links to your company’s goals, you need to have a thorough understanding of your aims, objectives, and mission. You’ll need to be able to articulate both your short and long-term plans for growth to the relevant HR personnel. Ensuring clear communication of your company’s goals will make it easier for HR personnel to formulate an effective resource management strategy. Evaluating your current HR capabilities will enable you to understand the employees you have and how they contribute to fulfilling your goals and objectives. Additionally, you should also undertake a skills inventory for every employee. Skills inventories help you to discover which employees are experts in particular areas. It also helps you to identify the employees who have an interest in being trained in a particular aspect of your company. A great time to asses skills is during a performance review. However, the traditional performance review is dying. Check out our guide on how to conduct an efficient and results driven performance review while obtaining the skills inventory you need from your employees! [Download] 9 Best Practices to Master the New Performance Review An assessment of your HR capacity will help you to recognize barriers and implement a plan of action to capitalize on opportunities and effectively deal with threats. Strategic HR personnel will analyze the number of employees as well as their skills and will work with senior leadership to identify ways to better equip employees to serve the needs of your company. After an analysis of your company’s employees and skills has been done in relation to your objectives, it’s time to forecast your HR needs. The forecast should be done in relation to:
Forecasting your company’s future HR requirements also determines the following:
HR personnel need to liaise with the appropriate departments to find out how the tools used by employees impact on their ability to perform their roles. For example, an audit of hardware and software can be undertaken jointly with the I.T department to identify gaps in tools that will facilitate a more organized workforce. For example, where a company employs hourly staff, it’s crucial to utilize workforce management software. This software manages important HR functions such as scheduling, holiday entitlement, and sick leave management. Deputy provides the functionality to effortlessly manage your employees’ hours and time. This enables your employees to focus on the tasks identified in the strategic HR plan that have a direct impact on growing your company. Sign up for a free trial and see how Deputy can support your strategic human resources management. After the analysis and forecast of your company’s HR requirements have been completed, it’s time to start the process of expanding your workforce and developing current workers to equip your company for future growth. You can achieve the implementation of your human resource management strategy by doing the following:
[Download] The Employee Engagement eGuide HR personnel should decide on a timeline to carry out a strategic HR management review. This review will track the progress made and also identify areas for improvement. The review should be measured against whether changes are helping your company to achieve their goals. Corrective action must be taken if strategic human resource management is failing to meet its objectives. Strategic human resource management articles Several articles have been written about strategic human resource management to help companies to implement this process. Check out two of our favourites below:
Human resource strategies examples With more than two million employees, Walmart is the world’s largest employer. This retail giant places a premium on the role of HR to drive and grow its business. The emphasis on the value of employees has been evident from the start when Walmart’s founder, Sam Walton, named the HR department the ‘people division.’ HR Magazine uses Walmart as an example of how strategic human resource management can be used to establish a profitable company. The article provides details about how Walmart aligns its seven overriding strategies (price, operations, culture, key item/products, expenses, talent, and service) with human resource strategic management, for example:
[Download] 10 Tips for Creating a Healthy Culture for a Multi-Gen Workforce
In addition to Walmart, Human Resources MBA compiled a list of 30 of the world’s most innovative HR departments. This list contains examples of companies that use human resources strategically to grow and strengthen their market position. These companies include:
Strategic HR services Strategic human resource management is important for every company. Your company doesn’t need to employ a specific number of employees before you start to consider implementing strategic human resource management principles. In fact, if you have a plan to grow your business, you should be thinking about linking this growth to strategic human resource management. Some companies outsource this part of their business because they don’t have an in-house HR function. Strategic human resource services provide full-service HR functions including developing a human resource management strategy. Strategic HR services help to take away the burden of both operational and strategic management to facilitate the growth of your business. To facilitate your company’s future growth, you should use tools and software that free up your time. Sign up for a free trial of Deputy below to see how we can help you with the time-consuming aspect of employee scheduling, so you have more time to work on the strategic aspect of your business. What should be included in a HR strategic plan?The HR strategy touches on all the key areas in HR. These include recruitment, learning & development, performance appraisal, compensation, and succession planning. An example of an HR strategy is an HR mission statement and HR vision, with concrete, high-level actions about how to execute on this mission and vision.
What four aspects should you consider when creating a good HRM strategic plan?Keeping the Ulrich model in mind, consider these four aspects when creating a good HRM strategic plan:. Make it applicable. ... . Be a strategic partner. ... . Involve people. ... . Understand how technology can be used.. What external factors need to be considered when developing HR strategic plan?External factors influencing HR planning. Demographic change influences the supply of labour. ... . Socio-cultural trends are closely related to demographic changes. ... . Technological change has impacted on the required employment skills and the nature of the employment. ... . Labour mobility.. What are the 3 key elements of the strategic approach to HRM?Elements of Strategic Human Resource Management (SHRM). Making use of planning.. Designing and managing people via a coherent approach.. Developing systems which are based on employment policy and workforce strategy.. Bringing out coordination between HR activities and other policies into developing business strategy.. |