HR strategy (Human Resource Strategy)

What is HR strategy (Human Resource Strategy)

Human Resource Strategy is a designation for long-term plan created
to achieve objectives in the field of human resource and human
capital management and development in the organization.
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VRIO Analysis

Strategic Management

Human Resources Management

HR Strategy (Human Resource Strategy) is a designation for a long-term plan created to

achieve objectives in the field of human resource and human capital management and development
in the organization. Human Resource strategy is one of the outputs of strategic management in the
field of human resources management.

What does the HR strategy contain and what is it?

Human Resource Strategy helps to unify and direct the behavior and actions of all people and their
overall development in accordance with the needs of the organization. It allows a
meaningful planning and management of all work with human resources.

 It sets out the overall system of recruitment - Defines processes, responsibilities and
requirements on recruitment and staff selection
 Defines requirements on staff training and qualification development
 Establishes an overall system of HR development (processes, rules, responsibilities)
 Defines the way of management of work performance, motivating and rewarding people,
social programs and employee benefits
 Defines working conditions, labor relations and influences the way of organizing

Human resources strategy usually follows a global strategy and includes specific goals in human
resources and a schedule for implementation - through projects or other actions and tasks.
Sometimes personnel audit can be part of developing a personnel strategy. When creating HR
strategy, it is also used a number of analytical techniques and methods such as SWOT Analysis, VRIO
Analysis, PESTLE Analysis and more.
5 Pillars of a Successful HR
Strategy
Jessica Thiefels
January 16, 2018Last Updated: June 18, 2019

How successful is your current HR strategy? The role of the HR

department has evolved over the years, transitioning from the traditional
“hire and fire” arm of the business to a strategic position. Today, HR
departments are not only responsible for recruiting new talent and
onboarding employees, but also establishing a positive workplace culture
and environment.

Juggling the traditional tasks with those that come with being an HR
professional in the modern workplace can be challenging. When trying to
meet the needs of the business and its employees, important details can
often be overlooked.
Below are five HR pillars every organization should be aware of when
developing or refining their HR strategy.

1. Legal requirements 
When onboarding an employee, it’s important that you follow and fulfill all
legal requirements to ensure that you protect the business and the
employee. For instance, every full-time employee should fill out an IRS W-4
form and I-9 form. Another important legal requirement is workers
compensation.

Regardless of the working conditions, workers compensation is required of

all businesses:

"If you have any employees—even just one—you are responsible for
including workers’ compensation insurance (in most states) in your
business insurance policy. This type of coverage exists to protect you, your
business, and your employees in case any of them get hurt or sick while
working for you." - Experts at USA Business Insurance.
You may also need directors and officers and general liability insurance to
protect employees from potential issues with customers.

2. Employee engagement
Did you know that only 33 percent of employees in the United States are
engaged in their jobs, according to Gallup’s “2017 State of the American
Workplace” report? In fact, employee engagement as a whole increased
only 3 percent from 2012 to 2016, according to the aforementioned report.

Employee engagement is critical to a company’s success. After all, an

engaged employee is a productive one. To increase employee
engagement, bring the following into your culture and HR processes:

 Gamification: Incorporate gamification into employee activities, such

as achievement-tracking and peer competition.
 Incentives: Financial and non-financial incentives, such as rewards
and recognition, give employees something to work toward. In addition,
they reinforce attitudes and behaviors that will help the organization
succeed.You can make the process of tracking these incentives, and the
milestones that designate them, with an employee recognition and
engagement platform such as Achievers.
 Employee Surveys: Conduct surveys on a regular basis to let
employees know that their voice is being heard and valued.

3. Career advancement programs

An organization’s biggest and most precious investment is its employees.
Yet, many organizations don’t invest enough in the development of their
employees. A career advancement program helps sustain employee
engagement, as employees are given the opportunity to progress both
personally and professionally.
In addition, it helps nurture talent within the organization, reducing the time
and costs associated with hiring outside employees.

A successful career advancement program should help employees set

achievable goals and offer in-house training sessions. Toastmasters
International, for example, is a communication and leadership development
program that teaches employees to become more effective communicators.

4. Corporate image
Maintaining a strong, positive corporate image is important, helping you
attract top talent to a growing team. The HR department plays a critical role
in upholding an organization’s image:

“Specifically, you [HR professional] should think about how your branding
is reflected in your recruitment efforts, workplace and involvement in social
media,” - Tiffany Aller, ADP’s Spark blog.
Aller suggests asking yourself the following questions:

 If your branding revolves around innovation, does your company

culture reflect that?
 Are your branding campaigns focused on technology—and does your
staff have access to the newest and latest equipment?
 How is your company reflected on social media, both formally
through company channels and informally through individual
employees?”
5. Performance management system
To make goal-setting successful, you need to have a tracking system in
place. Without an advanced performance management system, it’s difficult
for employees to gauge their progress and stay motivated in reaching their
goals. Not to mention, keeping track manually can get messy and is less
reliable.

If you haven’t yet, invest in a performance management system that makes

it easy for employees and managers to track and measure progress
throughout the year. If you have trouble getting buy-in from decision
makers, ask for a free 30-day trial of the product you like most. When your
trial is up, you can show higher-ups the benefits, rather than tell.

Be a modern HR professional
Today’s human resource departments are responsible for much more than
just hiring and firing employees. They play a strategic role in the day-to-day
operations of the business, especially when it comes to employee
engagement, necessary insurance, corporate brand and much more. When
developing or updating your HR strategy or department, don’t forget these
five important pillars.

To learn more about how to improve your HR strategy, check out this
webinar recording Using Recognition to Drive Engagement – A Best
Practice Guide with Scotiabank.
Let’s look at some of the tools available to HR departments when
developing their strategic plan?

 Competitive salaries
 Enviable benefits packages
 Promotion opportunities
 Continuous staff training and development
 Transparent and regular communications
 Focus on employee wellbeing
 Investment in corporate social responsibility
 Employee autonomy
 Open-door policy
 Freedom to be creative
 Enhanced hiring practices

In today’s competitive jobs market, attractive salaries and job perks are
commonplace. Large technology multinationals arguably set the tone for
often eye-watering benefits packages and other organizations were forced
to keep up. However, with these types of benefits now de rigueur,
employees are looking beyond how much a company can pay them, and
what a company stands for has become an important part of the story.

It is here where a successful HR strategy comes into its own. The most
successful HR departments at the most successful organizations, while all
focusing on their people, differ in the ways in which they cement their
reputation for innovative HR strategies.

Examples of successful HR strategies

Across the many ‘Best Places to Work’ lists (like Glassdoor for example)
many of the usual suspect’s reign supreme – such as Google and LinkedIn.
These organizations boast HR strategies that are recognized internationally
as being innovative. And while many of the stalwarts on these lists are high
tech firms, it’s heartening to see organizations that have been around for
decades making waves in the HR sector.

Organizations like Nissan, which has developed a HR concept it calls

‘kaizen’. Kaizen empowers the Nissan workforce to continually improve the
way a job is done. This is coupled with an emphasis on providing managers
with the autonomy to recruit and build their own teams.

Alliance Boots (parent company of the Boots chain) also shines for its
promotion of community outreach programs for employees. In fact, Alliance
Boots was the first organization of its kind that offered formal accreditation
to employees for their work in the community.

Another interesting example is BT, a juggernaut of a telecoms company,

which even during the economic crash continued to retain, train and
redeploy its existing staff. Its focus on its employees has earned it a
reputation for loyalty that is matched by its employees.

Mayo Clinic, which consistently features on Forbes 100 Best Companies to

Work For, has worked to create a dynamic team. This is supported by
strong management, consistent internal communications and ongoing
training and development.

These are just four examples of successful HR strategies that make their
organizations stand out. Human Resources MBA has compiled a
fascinating list of 30 innovative corporate HR departments that provide food
for thought for any HR professional.
What’s interesting about these examples, is that while all four have a
different focus, the thread of understanding what your employees are
motivated by runs through them all.