5 Steps to create an effective HR Strategy
Developing an HR strategy can provide great benefits to your business.
Research has shown that companies whose human resources strategy is in line with their business strategy can see an increase in revenue per employee, as opposed to companies without one. The findings were that employees, in companies with an effective HR strategy, had revenues that were 35% higher than employees in companies without an HR strategy.
So it's clear that creating an HR strategy in your company can be highly beneficial!
Here are 5 steps you can follow to create an effective HR strategy:
Step#1: Have a clear understanding of your company's business strategy and the culture of the organisation
You should also look into the company's documentation to determine the culture of the organisation (employee surveys can be really useful here).
Study a copy of the business strategy document and ask any questions around it so you can ensure it's completely understood. You can then move on to determine which human resources issues relate to helping you achieve your business strategy.
Step#2: Select the appropriate people to be involved in developing the HR strategy
Put together a representative team that can offer a cross-section of skills and functions. These members can contribute ideas towards the HR
Strategy as well as any knowledge from the departments they represent.
Encourage both line management and the HR Department to understand and appreciate each other's contributions.
Step#3: Carry out a one-day workshop for the HR strategy's development
The aim of this is to get active input from all the departments in the company about HR requirements and priorities necessary to make the business strategy happen.
Doing this will also ensure overall commitment, throughout the company, towards the HR strategy.
Step#4: Document the strategy
The HR department should then document the strategy, create the action plans and give out responsibilities for deliveries.
Try to keep the HR strategy as straightforward and as simple as is possible. This can increase the chances that the Hr strategy will actually be implemented.
Step#5: Communicate the HR strategy
In order to implement your HR strategy, you first need to ensure that all leaders understand its mission and purpose.
All leaders and human resources practitioners must be well-informed about, and understand, how exactly the company plans to manage its human resources in implementing the business strategy.
*Do you want to learn much more about the above-mentioned steps for an effective HR strategy? Well then get your hands on the Practical Guide to Human Resources Management
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