HR has evolved from being just an administrative body. Aligning HR with key business objectives is critical to a company’s success.
We all know that HR is all about people and an organization is what its people are. And yet, most businesses tend to skip aligning the HR with their key business strategies that directly impact the people. When HR goals and business objectives, look in the same direction the teams are likely to be more efficient and effective in achieving the overall organizational goals.
Here is how involving HR with business strategies can help your company grow faster:
Ready Skill Analysis:
Every plan and its execution, requires a certain skill set. With HR aligned to your plans, you get a ready reckoner of your current skill matrix and what all you need. You also get a foresight into how you need to train your current workforce to make them more compatible with your business plans.
Success of any new plan or related operational change depends on how quickly your people accept and adapt to the change. If HR is aligned with your plans, they can drive change management effectively. HR knows the nerve of the people, and this helps them in communicating the change and its benefits in a lot more effective way. Moreover, they can motivate the teams to leverage the new opportunities that the new plans may bring.
If employees are connected to company strategy and goals and are acknowledged for high performance, the goals are more easily met. Engaged employees are vital to company productivity. HR can be a key player at the strategy table if it develops performance management goals based on company objectives.
HR has a delicate balancing act to develop compensation strategies that balance company finances with employee expectations. If compensation is too low, employees leave for greener pastures. If it is too high, the company income statement can be adversely affected. HR must be included in product development efforts and ensure the right staff is on hand for this function, even if it means paying a premium in the short term for freelance or contract employees with the right skills and experience for the tasks at hand.
HR departments typically track data on the success of recruitment efforts or how many people received what kind of training. But this is not sufficient. The better metrics are those that establish the long-term links of HR to company success. A more important metric might be how well the company does at retaining key personnel, those who contribute most to the bottom line.