HR strategy is commonly defined as the direction and scope of an organisation over the long term, which achieves competitive advantage for the organisation through its configuration of people resources within and to fulfill customer expectations.
Basically, it’s about aligning employees and their functions to the overall mission of your company.
HR strategy is important because HR practices that align with your business goals will help your organisation achieve financial and commercial objectives more efficiently than it would without them.
A good HR strategy will often result in:
- Improved profitability by reaching sales targets
- Improved productivity of staff
- Reducing your costs
- Reducing customer complaints
- Employee retention
- Excelling against your competition
- Improved recruitment
- Avoiding the costs of an employment tribunal
So, how do you achieve these results? Here are some of the key elements HR strategy should focus on:
- Knowledge: Deeper knowledge and understanding of your business goals and business model can identify potential threats and opportunities in the quantity and quality of human resource required by your organisation. This in turn identifies the key components of your HR strategy and steps to take for business success.
- Performance management: HR needs to create and install a robust performance management process that sets out performance objectives for all levels of staff within a business. This is an opportunity to develop line managers’ skills in being able to disseminate and set targets for their business and manage staff performance - both the good and bad!
- Business design and structure: Organisational design is the shape, size and structure of the organisation required to meet customers’ needs. It reflects the management processes that drive the business model and determines organisational agility and flexibility.
- Strategic resourcing: Deciding on your resourcing strategy means identifying a number of critical components. These range from the processes needed to determine resourcing needs, the processes to attract the right people and the processes for assessing and selecting the right people.
For assistance developing your HR strategy please contact Preston HR on 4052 0709.