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An effective HR Strategy requires you to first 'know' your company. Follow these 6 steps to do just that

by , 13 March 2016
An HR strategy can be highly advantageous to your company.

In fact, research has shown that, because of an HR strategy, revenues per employee can go up by as much as 35% as opposed to companies who don't have an HR strategy.

So it's clear that an HR strategy is worth the effort.

But now where do you start from? What is the foundation of developing any HR strategy?

In order to lay a solid foundation for your HR strategy, you simply have to have a clear understanding of your company's business strategy as well as of the organisation's culture. After all,
what you want is an HR strategy which falls in line with these two factors, not against them

So in laying this foundation towards developing an effective HR strategy, follow these 6 steps...


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Thoroughly study a copy of the business strategy document and ask questions so as to ensure you understand all of its aspects.


Determine what the human resource issues are in relation to achieving the business strategy.


Understand the current HR issues in the company.

For example, look into past employees' exit interviews, as well as into the nature of past employee grievances, in order to pick up any consistent and concerning problems.


Look into the following points to understand your company's culture in the workplace:

·         How hierarchical or flat is the organisation;

·         How much are employees involved in decision making;

·         How flexible or fixed is the company in terms of hours and assignments;

·         How decisions are communicated within the company;

·         Compensation and benefits offered; etc.

*Page over to chapter H 01 in your Practical Guide to Human Resources Management handbook to learn what the rest of the steps are in order to fully develop an effective HR strategy.

If you don't already have this extremely useful HR resource, simply click here. 

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