HR Question:

We have successfully managed our HR tasks, policies, and administrative duties. Now, we are eager to expand our role and make a greater impact. How can HR play a strategic role in my organization?

HR Answer:

The days of transactional human resources departments are dwindling as the function must move to play a strategic role within the organization it serves. Involvement in strategic planning conversations leads to transformational change that is felt by all staff to meet companywide goals. In order to make sure these discussions are made with staff front of mind and driven by human capital data, human resources must be part of these conversations and included in the decision-making process.

Despite this need for transformation, HR leaders assessed in Sapient Insights Group’s annual survey suggest that it is not being widely embraced. According to the survey, only 46% of HR leaders surveyed reported that their function was viewed as contributing to the strategic value of the organization.

So, what can human resources professionals do to ensure their department is playing a more strategic role in the business and included in these conversations? Below are some of the recommended ways to develop an influential framework to align human resources management to your organization’s strategies.

1. Stay aligned with business needs and strategic goals.

Having a comprehensive understanding of your organization’s needs, strategic goals, and challenges or barriers to success is imperative for HR professionals wanting to make a significant contribution and impact.

2. Collaborate with organization leaders.

Business leaders cannot operate on their own or in a departmental bubble. It takes an entire leadership team to continue to grow and expand the organization with diversity of thought and expertise in their respective fields. Strategic HR management practices encourage networking, building relationships founded on trust, and professionalism to better collaborate with each other as a cohesive leadership group. HR can play a strategic role by assisting departmental leaders and even the C-Suite in achieving their goals to keep a pulse on all organization activities.

3. Develop key talent strategies.

Key talent strategies are necessary when striving for any business growth or change. We recommend concentrating on developing strategies focused on acquiring, retaining, developing, and rewarding high-performing talent. This requires a focused approach to recruiting, cultural development, performance management, succession planning, training and development programs, career paths, and equitable and incentivizing compensation for all positions within the organization.

4. Implement performance management.

If not already implemented, performance management plans tied to merit-based compensation are a proven way to guide employees through change management or to reach strategic objectives that they directly impact. Performance management requires leadership and human resources to set clear expectations, provide feedback, recognize employee contributions, and identify areas for training/growth for all staff.

5. Remain data driven and track relevant data with analytics.

Data analytics can help your organization in predicting future trends or areas of focus. They drive so many decisions made across all industries, and human resources can play a critical role in guiding leadership based on the information discovered from tracked human capital data. With various HRIS platforms offering analytics dashboards as a part of their foundational products, it is easier for HR to identify specific areas of risk and to improve overall employee engagement.

6. Create a positive work environment and clear communication.

This probably seems self-explanatory, however creating a positive work environment for staff has proven to increase engagement, productivity, retention rates, and cross-functional learning opportunities. While HR will still have an impact on all of things through strategic initiatives, it’s always nice to have it happening between colleagues naturally!

The important piece to remember is that clear communication is critical in this recommendation. Employees need to know what is actively happening in order to pivot their own actions and choices, as well as developing trust with their leaders.

Aligning human resources activities with your organization’s strategic priorities is essential for not only the business, but for those who are a part of team. By increasing communication, fostering collaboration, and leveraging data, HR can support the organization’s strategic plan and help with transformation. Embrace these ideas and watch the impact human resources can have in fulfilling your organizational goals.

Thank you to Mary Mitchell, MBA, SPHR, SHRM-SCP, CHRS, Senior HR Business Advisor, for contributing to this HR Question of the Week.

If your HR strategy is out of sync with your company’s overall strategy, you may be headed for trouble. Our HR experts can help you define and align your goals to support your company’s mission, vision, and goals – ensuring your HR function and your organization achieve mutual success. Visit our HR Strategy Services to learn more.