It’s Not About HR Strategy – It’s About PEOPLE Strategy
Over the years, in an effort to become more strategic, HR has embraced metrics, measures and benchmarks as a means of demonstrating their impact. We measure things like voluntary turnover, benefits as a percentage (%) of revenue, average total compensation, merit increase pro-ration, management ratio, training cost per FTE, time and cost to hire, and even training ROI.
HR efficiently and effectively underlines, its doing their job. The HR team can be the most efficient in history, but unless it translates to the bottom line, it is only activity. And the best that even these four can do is to start a dialogue about “why.” But we arm ourselves with benchmarks and metrics and use them during the inevitable budget challenge to show how well we are doing in comparison to other HR teams. We get really good at defending our worth because no one asks the real question – what value is HR bringing to the bottom line? This typically step up to this challenge, mostly because so much of the “people stuff” is really beyond our control. Or is it?
Creating an HR Strategy is about building programs and processes to attract, retain and motivate top talent. Creating a People Strategy is building programs and processes to improve human performance, a subtle, but important difference. By improving human performance at all levels, you create a leadership cadre that is skilled at leading who in turn engage and develop their teams thereby improving organizational performance.
What is a HR & People Strategy Strategy? IM
Planning and the development of an HR & People Strategy is a critical part of the people and organization process. It is important that all HR processes and initiatives are developed as part of an overall HR & People Strategy strategy which is aligned with, and designed to assist in the achievement of, the organizational strategy and goals.
A key part of the HR planning role is the development of a HR plan. This plan is a design for the organization to attract, retain and develop the workforce required in order to the meet its present and future needs.
Another key role of the HR function is the development and implementation of Policies and Procedures. There are important aspects to include when developing a policy to ensure it is interpreted and implemented correctly when rolled out across an organization. The automation and consistency of the human resource component is, therefore, a critical, foundational piece to success. Unlike most assets, which depreciate, an employee has the potential to increase in value. The quality and consistency of an employee’s output is directly linked to HR, making best practices in this area an essential and worthy investment
This document is an example how to link People & HR strategy to corporate strategy. The example is for a medical player, but it applies to all industries.