Today, I would like to discuss a topic that is very close to my heart. I want to talk all about us. This means I want to speak about human resources. A business’s success is dependent on the ability of its HR managers. They are responsible for recruiting, engaging, training, and retaining employees. They are essential to the success of any business in an ever-changing digital environment.
Human resources professionals must be lifelong learners. Even though we may have learned many years ago the principles and practices of strategic HR management, they might not be as relevant today. Businesses risk losing their employees if they don’t have a modern, strategic HR management team focused on flexible and adaptive employee development. According to the Society for Human Resource Management, these annual turnover costs could rise to $680 billion by 2020.
We need to be focused on strategic HR management activities.
What strategic HR practices should we focus on to help our organization reach its goals? These are the four areas in which keeping current with our knowledge and skills will help you retain your employees and build a strong culture to ensure success at both a local level and globally.
RECRUITING: Human Resources facilitates the process of hiring the right people.
The hiring process is one area in which HR managers can significantly influence the success of a company’s global growth. The organization will make better hiring decisions if it takes time to develop a strategy.
Strategic HR Management can be practiced by clearly stating the company’s expectations, in both a business and role-specific sense. The best candidates will be found by consistent and clear recruitment marketing messages. Interviews are conducted to help the hiring manager concentrate on job requirements and if the candidate has the practical skills necessary for their business to succeed globally.
Soft skills are equally important in hiring the right person. According to studies by Robert Half, 87% of business leaders said that the most successful hires were those with values, beliefs and a business outlook aligned with their business.
DEVELOPMENT: Human Resources creates formal as well as informal learning opportunities.
Human resource managers have a crucial role in improving the business’s performance through learning and professional development. The business can also ensure its employees have the right skills to compete in today’s global economy (see number one).
The future of work has been redefined by technology and other innovations. Therefore, we can practice strategic HR management by ensuring that all employees have access to soft skills training and technical skill development. HR can provide opportunities for employees to grow and develop their skills and knowledge. This can have a direct effect on employee engagement as well as turnover. A report by Mercer found that 78% of employees would stay longer with their employer if there were a long career path in their current workplace.
COMPLIANCE – HR ensures that employees comply with all employment laws.
No matter where you are located, we truly are a global economy, even more so with the most recent technological advances. It is possible to communicate with businesses and people all around the globe.
Although labor laws vary from country to country, most countries have very strict employment laws (specifically regarding recruitment, discrimination and terminating employment contracts). This area is critical for strategic HR management. HR must also know when to seek outside counsel in mergers or acquisitions cases. Or when you hire employees from another country.
Non-compliance with employment law can have severe consequences in terms of financial penalties and brand and reputational harm. HR should prioritize compliance to avoid potential legal issues and minimize organizational exposure.
QUALITY – HR ensures that their roles are managed effectively and efficiently.
This aspect of strategic HR management is not something we often talk about. We are human resource professionals and have a function and department to manage. It is our responsibility to ensure that it runs smoothly. This includes quality control and cost management.
Strategic HR management is about balancing short-term business goals with long-term benefits. This could include analyzing employee compensation packages and any benefits that might be helpful in recruitment and retention. HR and operational managers could work together to create cross-functional teams that maximize employee performance while minimizing the cost of bringing in new employees (see number 2).
Our role also includes quality control. Our role is to lead with our functional management skills, ensuring that business goals are achieved. HR is responsible for implementing systems that improve the organization.
Strategic HR Management is not something you can do overnight.
We must be adaptable to the changing business world. Strategic HR management is essential for today’s business leaders. Talent is the key to success.
These skills are important for anyone in the business world, whether you’re a human resource professional or a leader. You can achieve this by pursuing an MBA. This would enable you to improve your skills and give you the foundation you need to be relevant in today’s changing work environment.