Many businesses these days recognize the importance of human resources management in achieving organizational success. After all, your employees are your most valuable asset. Many organizations still don’t quite understand the role strategic human resource management (SHRM) can play in their company. In this blog post, we’ll discuss what strategic HR is and how it can benefit your business.
We’ll also provide some tips on how to make sure your HR functions are performing optimally. So, if you’re looking to get the most out of your workforce, read on!
Defining Strategic Human Resource Management
Strategic human resource management can be defined as “the proactive planning and development of an organization’s most valued assets – its people.
It is a long-term, continuous process that aligns HR programs and initiatives with the company’s business goals.” In other words, it’s all about making sure your HR practices are aligned with your overall business strategy by taking a holistic view of your workforce and understanding how they fit into your larger picture.
There are many benefits to implementing strategic HR in your organization. Perhaps the most important business strategy is how you attract and retain top talent. With the right strategies in place, you can ensure that you’re attracting high-quality candidates who will be a good fit for your company. Strategic HRM can also help you develop your employees and ensure they have the skills and knowledge they need to be successful.
Another key benefit of strategic human resource management is that it can improve communication and collaboration between different departments within your organization. Lastly, Strategic HRM utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective.
The Components Of Strategic Human Resource Management
There are four main components of strategic human resource management:
- Strategic planning
- HR policies and programs
- Employee development & performance management
Each of these areas is important in its own right, but they must all work together to create a cohesive SHRM system.
Strategic Planning: The first step in any strategic human resource management initiative is to develop a clear understanding of your business goals. What are you trying to achieve? How will your workforce help you get there? Once you have answers to these questions, you can begin to develop strategies for attracting, developing, and retaining the talent you need.
One thing to note is that strategic human resource management does not work independently. The HR department, for example, communicates with other departments in an organization to understand their goals and then develops plans that are consistent with those objectives as well as the broader company. As a result, the goals of a human resource department reflect and support the goals of the rest of the organization.
HR Policies and Programs: The next step is to put policies and programs in place that support your business goals. This might include things like employee onboarding, training and development, compensation and benefits, and performance management.
Employee Development: Once you have the right policies and programs in place, it’s time to start developing your employees. This means providing them with the skills and knowledge they need to be successful in their roles. It also involves helping them grow and progress in their careers.
Performance Management: The final piece of the strategic human resource management puzzle is performance management. This is all about setting clear expectations for employees and then measuring their performance against those expectations. Performance management can help you identify areas where employees need improvement and identify top performers who should be rewarded for their efforts.
Evaluating The Effectiveness Of Strategic Human Resource Management
Once you’ve put a strategic human resource management system in place, it’s important to evaluate its effectiveness with HR Analytics. There are a few key metrics a firm can use to do this:
Employee satisfaction: Do your employees feel like they’re being valued and supported? Are they happy with their jobs? Employees are no longer looking for games and beer in the breakroom. The feeling of being truly valued cannot be bought. Employees need to feel this from their managers and senior leadership to have full buy-in. Use surveys and other feedback mechanisms to get insights into how employees are feeling.
Employee engagement: Are your employees engaged with their work? Do they feel like their talents are being used effectively? Again, surveys and feedback can help you gauge employee engagement levels. Utilizing HR business partners to be present in the day-to-day business can also help you gather and measure this metric.
Employee Retention rates: Are you losing good employees? If so, why? Strategic human resource management can help you identify the root causes of turnover and put policies in place to reduce it and help with retaining employees.
Productivity: Is your workforce as productive as it could be? Strategic HRM can help you identify areas where employees are struggling and put solutions in place to improve productivity.
By tracking these metrics, you can get a good idea of how well your strategic human resource management system is working. The role of strategic human resource management in business is clear. By attracting, developing, and retaining top talent, SHRM can help businesses achieve their goals. If you’re not already implementing SHRM in your organization, now is the time to start.
Need Help With Strategic Human Resources Management For Your Business?
Strategic human resource management is essential for any business that wants to be successful. By attracting, developing, and retaining top talent, SHRM can help businesses achieve their goals.
As we stated earlier, if you’re not already implementing strategic human resource management in your organization, now is the time to start. We offer practical HR solutions that are built to address those challenges for you. Our solutions are delivered through human resource Outsourcing, HR Project Support, Adding to your internal HR team, Conformity, Organizational Design, Culture Change, or Interim In-Person Assistance.
And with over 45 years of combined Human Resources expertise across a variety of sectors, including government contracting, publishing, media, technology, and consulting, our HR professionals are highly knowledgeable in all elements of HR and business strategy. You get the benefit of a full team of strategic HR specialists without having to pay for the overhead that comes with employing a whole-time staff, by having a strategic partner do it for you.
Human Resources Services We Offer
Below are some of the strategic human resource services we offer:
- Negotiate competitive offers
- Develop and support engaging new employee on-boarding and orientation
- Facilitate employee off-boarding and exit interviews
- Design strategic employee communications
- Develop policies and procedures for employee management
- Develop, document, and maintain processes on for the human resources function
- Comply with federal, state, and local laws
- Design benefit plan, which includes working with benefit broker, managing benefit cost, hosting open enrollment, maintaining all required documents, sending required notices, and developing a benefit plan to attract and retain talent
- Manage benefit administration
- Provide compensation thresholds (target salaries) by conducting a salary analysis of the current market
- Develop and manage all performance improvement and employee development plans
- Manage Worker’s compensation incidents
- Develop and implement performance reviews
- Develop and implement training as needed
- Manage all employee relation issues with appropriate internal staff
- Facilitate conflict resolution with managers and employees
- Coach managers and employees on employee and performance issues
- Drive employee performance improvement processes
- Collaborate with leadership on the designing, planning, and implementing employee relations programs, policies, and procedures
- Manage human resources best practices around employee relation issue compliance
- Implement harassment and discrimination prevention
Why You Need An Experienced Team To Handle Your SHRM
Without an experienced team to help with your SHRM, you’re bound to face a plethora of problems. Some of these barriers include:
Lack of understanding: There is still a lack of understanding about what SHRM is and how it can benefit businesses. This lack of understanding can make it difficult to get buy-in from senior leaders.
Resistance to change: Many businesses are resistant to change, including changes to how HR is managed. Businesses may be hesitant to invest in new strategic HR planning process processes because they’re not sure if they’ll work or if they’ll be worth the investment.
Lack of top management support: Strategic HR requires buy-in from the top. Without it, HR initiatives will be seen as a waste of time and money.
Lack of resources: Strategic HR requires dedicated resources, including staff, budget, and technology. If your organization doesn’t have the resources to invest in SHRM, you won’t be able to implement it effectively.
Lack of data: Strategic HR relies heavily on data. If your organization doesn’t have accurate data on things like employee turnover, engagement, and skills gaps, you won’t be able to make informed decisions about your workforce.
Lack of alignment: Strategic HR requires alignment between the HR function and the business goals of the organization. If there’s misalignment, HR initiatives will be less effective.
The Future Of Strategic Human Resource Management
Strategic human resource management is constantly evolving. This is because as the business world changes, so too must SHRM. New technologies, global expansion, and the ever-changing workforce are all having an impact on the way SHRM is practiced.
To stay ahead of the curve, our team ensures to keep up with the latest trends in SHRM. Here are a few things to watch out for in the coming years:
The rise of artificial intelligence: Artificial intelligence is starting to have a major impact on HR. AI can be used for recruiting, business performance management, and employee development.
The gig economy: The gig economy is growing rapidly, and it’s having a big impact on the way businesses operate. More and more people are working as contractors, which in turn, changes how HR functions. How do you incorporate this type of labor into your general workforce?
The war for talent: With unemployment rates at historic lows, businesses face a serious talent shortage. This is making it more important than ever to attract and retain top employees.
Reach Out To Us Today
If you need help with Strategic Human Resources Management or any other human resources function, reach out to us today. We would be happy to talk with you about your specific needs and see how we can help.