Aligning HR Strategy and Business Strategy to support business success?

HR Strategy is in some businesses, overlooked and undervalued, but why is this? HR or Human Resources can have a big stigma surrounding it, ‘The fun police’, ‘Red tape’, ‘Ineffective department’ and so on. Because of this HR doesn’t get the limelight it needs to be effective in the
business and it should be an integral part of any good business strategy.

Now there is a whole other area about the effectiveness of HR teams and individuals, but we will not go into that now. In this article we will look at what an HR team is supposed to do in the long term. In essence they look all the operational and managerial aspect of your people working in the business.

This means every part of the employee lifecycle within your business, from recruitment, onboarding, performance, training, succession planning, termination and more it doesn’t mean the payroll or managing their personal details. Whether you have an HR team in your business or not, someone will still be completing the tasks of an HR professional.

As a business owner you will be familiar with creating and implementing a business plan, but as your business grows so does the need for an effective, well skilled workforce that fits your business culture and business model.

An HR strategy gives you focus. Enabling you to identify and script what you need to do with your people, the operation and managerial processes and systems to achieve your Business goals.

If a process is too cumbersome it may be standing in your way of business success, if you have an HR system that isn’t working for you, it could be costing you money, if you have the wrong people in your organisation you could be wasting your time and money trying to get them
onboard. This is why when you have an HR strategy that is truly aligned to the business plan business goals and business success become a reality.

Anyone responsible for the implementation of an effective HR strategy would first look inwards identifying; any strengths and weaknesses; what being done for the sake of it and what actually needs to happen. Having prioritised key actions, they will also need to ensure the business
stays compliant with employment legislation and regulation.

In essence HR needs to turn itself from being ‘ineffective’ to becoming ‘effective’ HR should be an enabler not a prohibitor. It takes high level strategic planning and time to build the right processes, systems and people in an organisation and this starts with the business strategy and consequently the Culture of the business, once you have your finger on the pulse with these, you can then begin to take action and review your HR department.

So, what are the advantages of having your HR and Business Strategy aligned I hear you ask? When the two are aligned six key things occur:

  1. The business can run at the pace required to meet or exceed the business objectives.
  2. You will have top level streamlined processes and procedures that work for the business.
  3. You will have coherent systems in place that free up your time on administrative and menial tasks, allowing more time for value added services.
  4. You will be more focussed on spending time delivering quality initiatives that make an impact, rather than spending time and money on doing things that don’t add value.
  5. You will have the right people in the right places at the right time, allowing you to respond to your market quickly.
  6. Meeting your business goals and objectives gives you competitive advantage and increases your market share.

Once you have an effective team your business is in a much stronger place to compete successfully within our marketplace/sector for your products or services.

HR Strategies will look very closely at the following process and how you implement them: recruitment processes, on-boarding and off-boarding, staff engagement, benefit schemes, disciplinary procedures, complaints processes, team development, personal development, staff socials and team building exercises and succession planning. An HR strategy looks at bringing the right people into the business, developing them and retaining them.

In summary, if you do not value the role HR has on your business you will find you are spending a lot of time and money on things that don’t add value and therefore holding your business back.

We would recommend taking a step back and being honest with yourself, what can you do about your business, are you ready to take the step to align your business and HR strategy?

If you would like more advice and to talk about your business or you would like us to come in and support you with your HR Strategy, then get in touch with us today and let us support you.

3. Don’t forget to include all your overheads