How to create a Human Resources management strategy?

The Human Resources area plays an important role in any organization since it is responsible for managing the human capital. We cannot forget that employees are the ones who carry the business towards the its goals. There lies the importance of a proper Human Resources management strategy. 

Therefore, here we have the question: how to create a Human Resources management strategy? Generally speaking, the details surrounding a strategy will change according to the organization’s needs. That being said, there are some steps you can follow to create an effective strategy. 

Steps to create a HR management strategy 

First, we have to understand why it is necessary to develop such strategy. One of the main objectives for creating a Human Resources management strategy is finding ways in which the Human Resources can have a direct and positive affect over the company’s performance. 

In other words, the goal is to connect the employee’s performance with the company’s main objectives. Knowing the purpose of creating a strategy, we can follow a series of steps that will helps us create one from scratch. 

1. Know the organization’s needs and objectives 

It is impossible to create a good Human Resources management strategy without considering first the organization as a whole. In fact, this strategy must operate in tandem with the business’ general strategy. For that reason, the first step is to delve deep into the objectives that move the organization forward. 

Understanding those objectives helps you identifying what the organization wants to achieve in the medium and long term. That is the key to know what the business needs to achieve those objectives. As a result, you will be able to assess if the company requires more personnel. 

2. Assess your current skills 

The next step is making a detailed examination of the particular skills of the employees in the organization. A common mistake is thinking that the skills and capabilities workers have are always the same or that those are always limited to a specific area of the company. That’s is not accurate and you leave many possibilities unexplored. 

Understanding the specific skills employees have will give you a clear picture of the company’s strengths. At this level of the strategy development process, you should perform a skills inventory. This is basically listing the skills, knowledge, academic background and professional experience employees can offer the organization. 

3. Compare the skills with the objectives 

Once you have completed the skills inventory and you know the strengths of your employees, it becomes easier to make a deep analysis of the state of Human Resources. This is the perfect stage to perform a SWOT analysis. It will help you identify the strengths, weaknesses, opportunities and threats surrounding the organization. 

Maybe one of the weaknesses lies in the skills the employees have. In that case, you can offer further training and an implement an additional filter during the talent acquisition process to have talent aligned with your organization’s needs. Perhaps the source of your weaknesses is the lack of proper digital tools. In that case, you can ask for the acquisition of the required tools and promote a technology-friendly organizational culture. 

4. Anticipate the workforce needs 

Now is time to focus on all the needs and possibilities the organization could have in a near future regarding the Human Resources. In this stage you focus directly in the opportunities and threats obtained in the SWOT analysis. 

An aspect you have to consider are the job positions in the organization. Is it enough with the current positions? Is it necessary to create new positions? It is also important to know if the current recruitment practices are enough for the expected company growth. Likewise, you need to know if the current tools in the area are good enough or if is necessary to invest in new technology. Keep in mind that technology in Human Resources is a key factor for modern businesses.  

5. Implement your strategy 

The implementation of your strategy cannot overlook the following aspects: 

The recruitment process 

Create a recruitment process that takes into account the needs identified in the skills inventory. That will help you to hire employees in tune with the company’s objectives. 

The organizational culture 

The organizational culture lets you implement a defined way of working in the organization. This helps you get the most of employees’ the strengths and skills. 

The Human Resources tools 

A good professional needs the proper tools in order to get the best results. You can start by implementing the most essential ones according to the analysis results. This can take the form of Human Resources Information Systems or ATS software, which are some of the most common and useful tools in this area. 

Actions to engage employees 

Your strategy must consider actions that keep employees engaged. This is key to keep a good performance in medium and long term as well as to reduce turnover rate. 

6. Monitor and update the process 

There is no such a thing as a perfect strategy. This allows us to improve the strategy. Once you have applied it; you should check its performance regularly and update it if necessary. To do his, you can use metrics such as the retention and the turnover rate in the organization. 

At Talent2Win, we strive to align your company’s business objectives with the best Talent Acquisition strategies available. If you want to learn more about the services we offer, do not hesitate to contact us.