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Why does your business need an HR strategy?

Employment Law & HR
BG Purple

Note: this article was first written by our colleagues at Solve HR, before Solve HR joined Law At Work in March 2020. We have imported this...

Strategy is about winning'. it is a unifying theme that gives coherence and direction to an individual or organisation.

In particular, HR Strategy is: '"The direction and scope of an organisation over the long term, which achieves competitive advantage for the organisation through its configuration of people resources within and to fulfil customer expectations.'" - Johnson and Scholes

In brief, HR or Human Resources Strategy is about looking at your biggest asset/expense/concern also known as 'employees' and aligning your people and their functions to the overall mission of your Company. But why bother? Because HR practises that align and have harmony with your business goals will help your business achieve financial and commercial objectives a lot quicker than without. It could be for any of these following reasons that you create a HR strategy aligned with the aims and objectives of your business; Improved profitability by reaching sales targets Improved productivity of staff; Reducing your costs- less wasted time, resources and wages; Reducing customer complaints; Employee retention- keeping your best people; Excelling against your competition; Good PR- recognition as a 'great employer' Improved recruitment - getting the right people at the lowest cost; Avoiding the costs of an employment tribunal - Have you ticked them all? I hope so. 

So how do you get a HR strategy to deliver all this? By ensuring your HR strategy fits your business goals and trading environment which in turn determines your operational HR processes and procedures. One example I can give is suppose your business operates in an industry that relies heavily on research and new product design, perhaps renewable energy sources or pharmaceuticals. In these suggested environments your HR Strategy should revolve around 'Encouraging Innovation' in your staff members. Therefore some of the principles of your HR disciplines and activities may take the following approaches to support this aim. Most of all, the HR Strategy and subsequent practises should all be fit for purpose and complement each other ultimately supporting your business objectives. For example there is no point having great recruitment methods which attract highly talented innovators if your lack of/or contradictory remuneration strategy undermines their motivation to delivery innovation. To get the right strategy for your business Solve starts with a review of current practises against your business aims and objectives.

Solve's strategy review includes: An in depth Learning Session about you, your business, your vision and objectives for your Company moving forward, so that we can get to know your business from the inside out and really understand what success looks like for you. A full review of your existing HR Policies and Procedures, ensuring compliance with current Employment Legislation and making recommendations for additions that are required by law, which will enhance your current policy and procedure portfolio and will drive the culture you want to see within your business An analysis of your current HR related costs and recommendations on how you can make reductions whilst enhancing the morale and motivation of your employees. This analysis will include a review of your Recruitment and Selection Process, your current labour turnover levels, the level of Employee Disputes in your business and their associated costs, your current Payroll and Expenses A Company Culture analysis, involving Employee Surveys and Engagement Cafes designed to understand who your employees are, how they feel about working within your Company and make recommendations on how you can get the best from your most important asset. Presentation of findings and recommended strategy improvements If you are interested in ensuring your HR strategy is aligned with your business aims and objectives please contact us today Email/Phone.

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