The HR function is a process of bringing different people and organizations together to meet their goals and objectives together.
The purpose of the Human Resources (HR) function has been continuously changing according to time and situation. Previously, the HR department was the one that keeps the record of the whole organization. But as time changes people also change their perspective towards HR management teams, now most companies believe that the HR team is a key contributor towards their business success.
In this article, we will discuss how important it is to ensure that the HR functions are properly aligned and how to link HR to the business strategy of an organization for their growth and development.
What is Strategic Human Resources?
A good strategic HR is defined as the link between an organization’s vision, objectives, and goals, as well as the activities of one of its core resources—its employees. Strategic human resources management can have several different purposes depending on the business in which they are going to deal.
In simple words, we can say that it helps to improve the business performance by recruiting, developing, and retaining the best talent in the market. The purpose is also to develop and maintain a work culture that is progressive towards the business needs.
There are so many things that are also considered in the HR function, from dealing with payroll services, finalizing the contracts on behalf of an organization, and maintaining a positive employee relationship. Effective strategic resource management aims to work along with these necessary strategies to help the business to achieve the targets that are set by the organizations.
Strategic HR can be very effective in organizations if implemented correctly. It benefits the organization in several ways. It can be a very useful tool to help identify the opportunities that we can have.
How to Link HR Strategy with Business Strategy
Focusing on your organization’s HR function so that it could be more strategic can have so many benefits, but it is not something that can be done immediately, it Is something that needs proper planning and implementation of that.
Here are a few steps that help you to Link the HR strategy with Business:
1. Understand the Current Strategy and Objectives
To Link your HR strategy with a business, the first step is you must understand it thoroughly, with a focus on the parts of the strategy that show how capable your HR management team is. and how much potential they have to contribute towards it?
It is true that the senior-most team of the business not only defines the goals and objectives of your organization but also reflects the work culture and the values of your organization. In this way, we can understand the role and contribution they play in organizational success and can align their own work accordingly.
If the current strategy and objectives are clear and understandable then it will be very beneficial in the future, because we can work on our weak points and can plan a new strategy if needed.
2. Self-Analysis of Your HR Function
Before we move forward towards the next step it is important to self-analyze the performance of your existing HR team to better understand their capability and skills that they have, and therefore what opportunities can be added in different areas that can increase their values
There are various ways through which this process is carried out. Start making some effective skills and competency-based assessments with your existing HR team to check where strengths and opportunities lie and this gives you the clarification that which are your strongest areas and where you need to work a little more.
3. Keep Your Employees Engaged Around the Strategy
Keeping your employees engaged around the strategy is one essential step to link the HR team with business. When individuals are engaged in achievement, the strategy will definitely move in a positive direction.
The employee performance appraisal acts as an important factor in boosting the confidence and productivity of the employee.
Everyone can have a different idea towards the business strategy so plan conferences or meetings on a regular basis so that they can share their ideas during the interactive sessions.
4. Know your Future HR Requirements
It is very important to Look at your current HR function capabilities, this will give you a clear picture of the current situation. Strategic human resource management is looking at what will happen in the future in the business strategy and plan according to how HR can support the business to meet its goals and objectives.
There are two important factors that should be considered in this —supply and demand. Supply relates to the employees that are already in the business and what opportunities exist with their skillset and according to their way of working. Demand considers what are the necessary requirements that you might need in the future to add more value to your HR skills.
5. Analyze The Tools Needed by the Employees For Their Roles
One of the most important steps is to analyze the necessary tools that are needed by the employees for their job roles.
a) The tools that give the best opportunities to the team and work effectively with them.
b) Which tools are required in the future or what investments might need to be made in the future.
This is important because employees’ skills and experience contribute the most toward business success, but without the appropriate tools (e.g., IT hardware and software) that they need to perform their roles, they cannot work according to their potential.
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