4 Steps to Create A Comprehensive HR Strategy For Ambitious Business Success

Let's talk about the backbone of your organization.

No, not the fancy tech or shiny office space - I'm talking about people. But what does HR strategy have to do with people?

An effective HR strategy is crucial for ensuring that your company’s people are integrated at various levels and aligned with organizational goals. With 4 straightforward processes, you can effectively set up an HR strategy that will position your organization for consistent, tremendous business growth. Ready? Let’s look at each process in detail.

#1 Evaluating Your Organization's SWOT in HR Planning

To create a winning HR strategy, you need to start by evaluating your organization's strengths, weaknesses, opportunities, and threats (SWOT). This analysis will help you identify areas for improvement and show you how to ride on existing advantages.

Identifying Internal Strengths and Weaknesses in the Workforce

Step #1: Take a good look at your workforce. What are their unique skills and talents?

Step #2: Identify any gaps or weaknesses that could hinder growth or productivity.

Bonus Tip: Use an HR software like Lanteria to help you focus on productivity, track people's progress and records, and create charts and reports to visualize your HR data.

Recognizing External Opportunities and Threats Affecting the Business

Keep an eye on industry trends. By monitoring external trends like new technologies, market shifts, social and cultural norms, trade policies, and government regulations, you will be able to identify trends that could benefit your business. These can then be infused into your HR strategy to ensure the business grows.

Close monitoring of external factors will also reveal the threats that can affect the company’s performance negatively. List potential threats such as competitors' moves or changes in regulations so that you can plan to mitigate them with your HR strategy.

Finding Balance Between Strengths & Weaknesses vs. Opportunities & Threats

This SWOT analysis will serve as the foundation of your HR strategy, guiding you toward people-centric solutions that drive organizational success.

• Strengths: Leverage your team's skills and expertise to capitalize on new opportunities.
• Weaknesses: Address any gaps or shortcomings through targeted training programs, hiring initiatives, or partnerships.
• Opportunities: Create a proactive plan to seize these chances for growth and success.
• Threats: Mitigate risks by staying informed about industry changes and developing contingency plans when needed.

Empowering employees and creating an exceptional experience for your staff is key to achieving strategic objectives and organizational goals. HR leaders and professionals must align their initiatives with the overall business strategy to ensure success. This includes talent management, succession planning, and employee engagement.

According to the Harvard Business Review, people analytics can help HR departments make data-driven decisions that impact the bottom line. By analyzing HR metrics, such as retention rates and employee satisfaction, HR professionals can identify areas for improvement and make decisions that positively impact the organization's ability to execute its long-term plan.

Remember, a company's culture is a competitive advantage. By retaining talent and creating career paths for existing employees, HR can help foster a positive organizational culture that attracts top talent and drives business objectives forward.

Now that we’ve identified how SWOT analysis can strengthen an HR strategy, this next process will focus on risk-taking behaviors and how they can speed up a company’s success. 

#2 Encouraging Risk-Taking Behavior During Uncertainty

Let's face it, uncertainty is inevitable.

Whether it's a global pandemic like COVID-19 or unexpected market shifts, HR professionals must be prepared to adapt and thrive in challenging times.

So how can you encourage risk-taking behavior among your employees? We've got 5 actionable tips for you right here:

Fostering a Culture of Experimentation

Start by promoting an open-minded environment where new ideas are welcomed and encouraged. As this progresses, recognize and reward employees who take calculated risks that lead to innovation - even if they don't always succeed.

Celebrate the successes and the failures, and establish a ‘test and iterate’ system that gives your company a bank of ideas and prevents stagnation. In addition, make it a company culture to learn quickly, and encourage your team to ask questions and present their ideas for experimentation.

Implementing Agile Methodologies for Better Collaboration

Take advantage of agile methodologies within your organization to increase flexibility and responsiveness during uncertain times. Becoming agile will help your team to focus on creating the most important business values first and become better managers of the cost, time, and scope of projects.

If the concept of agility seems daunting, consider starting with smaller teams or departments before scaling up across the entire organization.

Listed below are additional tips to help your organization thrive during uncertainty:

• Provide ongoing training and development opportunities for employees to learn new skills.
• Encourage cross-functional collaboration, which can lead to innovative problem-solving.
• Promote open communication channels where employees feel comfortable sharing their concerns and ideas.

Ready for more? Discover how Lanteria's all-in-one HR software can support your strategic HR efforts.

In a nutshell, fostering risk-taking behavior in times of uncertainty is crucial for organizational success.

The key lies in creating an environment that encourages experimentation, agility, and continuous learning - so go ahead and embrace the unknown with confidence.

#3 Creating Mission Statements for Strategic Human Resource Management (SHRM)

To create an effective SHRM, you need a solid mission statement that outlines your vision for success.

But how do you craft one? I'm here to guide you through the process with some actionable tips and tricks.

Define Clear HR Objectives Aligned with Overall Business Goals

First things first: Clear HR objectives will help your team to work with focus, motivation, and direction. Like a compass, it will put everyone on the path of prioritizing resources, increasing efficiency, and becoming accountable. Examples of these objectives include attracting and hiring the best talents; providing the best training; and developing effective communication and coordination systems within the company.   

Identifying the objectives of your HR team is essential for constructing a mission statement that is in line with the organization's broader objectives.

Establishing Actionable Steps Towards Achieving Desired Outcomes

You’ve defined your HR objectives and that’s fantastic. The next step in creating the mission statement is to outline clear action steps to back them up. You’ll see how to do that next. 

• Step #1: Break down objectives into smaller tasks or milestones. This helps make progress more manageable and achievable.
• Step #2: Create deadlines for each task or milestone. Deadlines keep everyone accountable and focused on moving forward efficiently.
• Step #3: Determine who is responsible for completing each task. Assigning ownership ensures accountability within the team while fostering collaboration across departments when needed.
• Bonus Tip: Incorporate regular check-ins to monitor progress, address any roadblocks, and celebrate achievements. This helps maintain momentum and keeps everyone engaged in the process.

With these steps, you'll be well on your way to creating a mission statement that drives strategic human resource management success.

Want more tips on developing an effective HR strategy? Check out this insightful article from Lanteria.

Now that you have your clear objectives and action plan, it is time to write the mission statement. As its name suggests, the mission statement highlights the specific mission that your organization is trying to achieve. 

This formula - from Don Miller's book "How to grow your small business", is the best formula for crafting a clear, action-oriented mission statement. This is the formula below

We will accomplish X by Y because of Z.

X is your clear goal

Y is your realistic timeline and,

Z is the compelling reason why you need to achieve that goal.

Best Practices in Developing Your HR Strategy

With your mission statement, SWOT analysis, and risk-taking measures firmly in place, you can now clearly see your organization's biggest challenges. Next, brainstorm people-centric solutions to those challenges with your team and select the best ones to start executing. 

The roadmap to using those people-centric solutions to solve your organization's challenges is what becomes your HR strategy. 

Finally, let's dive into some best practices that will help you align your human resource efforts effectively within your organization, leading to improved efficiency, enhanced productivity, and increased profitability.

1. Aligning with Business Goals

First up, ensure that your HR strategy is aligned with your organization's overall business goals. This alignment will help you to create a strategic HR plan that supports your company's strategic objectives and organizational goals.

2. Conduct Regular Workforce Assessments

To stay ahead of the curve, conduct regular workforce assessments to identify skill gaps and areas for improvement. This will help you to develop HR initiatives that empower employees and improve the employee experience.

3. Foster Employee Engagement & Retention Strategies

Create an engaging work environment by focusing on employee engagement and retention strategies. This includes developing career paths, improving the hiring process, and investing in employee development and training programs. In doing so, you can retain talent and improve your organization's ability to make decisions that align with your business objectives.

4. Embrace Technology & Automation

Incorporate technology and automation tools like Lanteria's all-in-one HR software to streamline processes and improve efficiency. This will help you to reduce transactional work and focus on strategic HR functions that drive success.

5. Develop a Strong Employer Brand

A strong employer brand is essential for attracting top talent in today's competitive market. By developing a company culture that empowers employees and aligns with your organization's values, you can create a competitive advantage that sets you apart from other employers.

6. Invest in Employee Development & Training

Investing in employee development and training programs not only enhances skills but also boosts morale and loyalty among your workforce. This will help you to improve HR metrics like employee engagement and retention, which are critical to the success of your HR strategy.

7. Monitor Key Performance Indicators (KPIs)

Last but not least, monitor key performance indicators (KPIs) to measure the success of your HR strategy over time. By using people analytics and conducting regular SWOT analysis, you can identify areas for improvement and adjust your HR strategy accordingly.

Use these tips to create a successful HR plan that yields beneficial outcomes for your company. For more information on HR strategy, check out this resource from Harvard Business Review.

Happy strategizing.

FAQs Relating to Hr Strategy

What are the 4 types of HR strategy?

The four main types of HR strategies include cost-driven, which focuses on minimizing labor costs and maximizing efficiency; resource-based, emphasizing employee skills, knowledge, and abilities to gain a competitive advantage; innovative, prioritizing creativity and adaptability for organizational growth; and quality-focused, centering on high standards in products, services, and talent management. Each type is tailored to specific business goals.

What are the 5 HR strategies?

The five key HR strategies involve: (1) aligning business goals with workforce planning; (2) enhancing employee satisfaction and retention; (3) developing a comprehensive talent management strategy; (4) implementing effective performance management systems; and (5) utilizing data-driven insights for decision-making.