Highlights
- SHRM is the process by which HR supports company objectives through specific strategies and practices, such as talent management, leadership development, and performance management.
- The biggest difference between regular HR and SHRM is that the latter is proactive, deeply aligned with company objectives, and has measurable goals instead of tasks.
- At Impact-PEO, we strive to exceed your expectations and change the game’s rules to help you on your path to success and growth. Contact Us!
Human Resources is an indispensable department for any company. Until a few years ago, it was a team that organizational leaders saw as an expense rather than a contribution to their growth. However, in the past few years, the relationship between companies and their HR teams has become part of their improvement and growth strategies.
Today, employee management is considered an integral part of a company’s overall growth strategy, known as Strategic Human Resource Management (SHRM). It involves the HR department contributing to the company’s growth and achieving its business goals.
In this blog, you will find a complete guide on how to implement SHRM in your company, providing you with step-by-step instructions to enable your HR department to play a vital role in your company’s growth.
To have a good Strategic Human Resource Management plan, the way business is understood must change. Realistic and measurable long-term plans and a good relationship between managers and employees are the cornerstones of growth.
Strategic Human Resource Definition & Goals
Traditionally, HR is considered an administrative team only necessary to comply with labor laws. However, this vision has had to change with the arrival of Strategic Human Resource Management.
The main differences are HR’s relationship with the company and employees.
SHRM is a concept and a methodology developed in the 1990s through the work of different authors. SHRM is the process through which a company’s HR team supports general objectives with strategies and practices specific to its area.
These strategies aim to optimize internal functions, including strategic planning, talent management, leadership development, organizational design and performance management, building and maintaining a high-performance work culture, and organizational design to add value and achieve a competitive advantage.
The objective of SHRM is to support business goals through practices specific to the human resources area. Here are some examples.
- Connecting employees to organizational goals: Effective SHRM management inspires employees to achieve company objectives and feel invested in the company’s success, resulting in improved motivation and performance.
- Gain a competitive advantage: Clear organizational goals help HR identify necessary skills. SHRM improves the workforce with better talent management, training, and development policies.
- Adapt to change: SHRM allows organizations to adapt quickly to technological advances, market changes, or new workforce demographics.
HR Strategic Planning Benefits
HR Strategic Planning has many benefits for companies, both from the point of view of growth and achievement of objectives and from the efficiency of the HR area. These are some of the benefits of having a strategic HR plan.
- Talent Acquisition and Retention: A strategic plan allows the company to improve its recruitment. This does not mean hiring more people. It means hiring the best people and ensuring they contribute to the objectives by providing experiences and/or knowledge.
- Skill Development and Training: A good SHRM strategy needs training. Companies only grow with new hires. Employees must also update themselves and gain new knowledge. This also improves talent retention thanks to opportunities for growth and learning.
- Adaptability to Change: SHRM usually has plans A, B, C, and even Z, but there is always the possibility that something unforeseen happens or the plan must change. The strategic approach to HR allows the HR team to better adapt to changes and manage the rest of the staff.
- Data-Driven Decision Making: All strategies are data-driven. A strategic approach to HR is driven by the need for different data from different areas of the company, to process it, and be able to make informed decisions based on it.
Strategic Human Resource Management Best Practices
Creating a Strategic Human Resource Management plan is more complicated than you think and requires the presence and collaboration of other areas. However, we will consider some of the best practices when creating this plan.
1. Know Your Company’s Goals and Abilities:
A good way to start is to make a SWOT analysis. When you are clear about the current state of your company, you can start asking yourself other questions:
- What are the long-term objectives of the organization?
- What are your current resources?
- What skills does your workforce currently have? Are there gaps?
Use the answers to articulate the objectives in the form of OKR or Objectives and Key Results, which you must divide into KPIs or Key Performance Indicators. This will allow you to measure whether you are achieving the set objective.
2. Align HR Activities with the Strategy
Include your HR team in making the strategy so they can also plan around it. For example, if you identify a skill gap, you should look for that skill in your new hires and train your current employees; this way, you can make up for the lack of that skill quicker and align your entire workforce.
3. Execute Your Plan
Start executing your SHRM plan. Remember that you should monitor the results to see if they progress as they should. Plans are not written in stone and can change at any time. Be ready for that possibility.
Impact Professional Employment: Freedom to Focus
Pursue your Passion. Measure the IMPACT! This is an excellent summary of what you can achieve by implementing a Strategic Human Resource Management plan. To do this, look for the best ally, Impact Professional Employment.
Our core principles shape our efforts. We are dedicated to our clients and benefit from our shared success. We can take on your day-to-day HR needs and turn them into solutions that support the growth of your company and its strategic objectives.
At Impact-PEO, we strive to exceed your expectations by breaking barriers and changing the game. Contact us if you need help with hiring, payroll, compliance, or benefits administration. We’re available to help you.