Creating a Winning Human Resources Strategy

I love working with businesses where a clear human resources strategy aligns seamlessly with organisational goals. When everyone understands their role and how it contributes to the bigger picture.

In today’s dynamic human resources landscape, building a successful strategy requires a mix of experience, research, and adaptability. With 30 years in human resources, this paper outlines the essential steps to create a strategy that aligns with your business, nurtures a positive culture, and drives success.

1. Align HR Strategy with Business Goals

One of the most critical aspects of a successful HR strategy is alignment with your organisation's overarching business goals. In my opinion, it is not an effective approach for HR to sit on the sideline and develop a strategy that does not underpinned the organisation’s goals.

According to research by Gallup, companies with a clear connection between HR strategy and business goals see significantly higher levels of employee engagement and performance. To achieve this alignment, HR leaders need to work closely with all disciplines within their leadership team to understand the company’s strategic direction and develop HR initiatives that support these goals.

2. Focus on Employee Engagement

If you have read any of my earlier articles, you’ll know I am a big fan of understanding the critical impact employee engagement has on business success.

Gallup’s research consistently shows that engaged employees are more productive, have higher retention rates, are better ambassadors for their organisation and have positive impacts on business outcomes such a profit and customer satisfaction.

The reverse metric, as estimated by Gallup is that low employee engagement costs the global economy 8.9 trillion U.S. dollars, or 9% of global GDP.

HR strategies should, therefore, prioritise initiatives that foster engagement. These key levers will differ for every organisation, highlighting the importance of asking your team how you are performing and incorporating this feedback into your HR strategy through initiatives to specifically target engagement feedback.

3. Foster a Culture of Continuous Learning

In today’s rapidly changing business environment, a culture of continuous learning is essential. This involves not just providing training and development opportunities but also creating an environment where learning is embedded into the everyday.

Prior to starting my own business, I worked for an organisation where we did this very successfully through the implementation of a learning experience platform. This initiative put learning and content development in the hands of our employees. They were able to take control of their professional development, learning where, when and what they wanted.

Research shows that 64% of employees surveyed said it was important to have visibility into their skill gaps or future needs. This highlights the importance individuals place on their ongoing professional development.

From a company perspective, organisations that prioritise learning are better equipped to adapt to changes in the market and technology, making them more competitive.

4. Emphasise Diversity, Equity, and Inclusion

A successful HR strategy must prioritise diversity, equity, and inclusion. Research from McKinsey shows that diverse teams are more innovative and perform better financially.

Analysis found that companies with executive teams in the top quartile of gender diversity were 25 percent more likely to experience above-average profitability than peer companies in the fourth quartile.

In the case of ethnic and cultural diversity, the findings are equally compelling companies in the top quartile outperformed those in the fourth by 36 percent in terms of profitability.

Building a diverse workforce goes beyond hiring practices; it involves creating a culture where every employee feels valued and included. Companies winning the diversity challenge are adopting systematic, business-led approaches to inclusion and diversity, with special focus on inclusion.

What does this look like in actual practice?

~??????? Increase in a diverse representation especially in leadership and critical roles.

~??????? Increased accountability for delivering inclusion and diversity goals.

~??????? Enable equal opportunity through transparency and fairness.

~??????? Tracking bias and discrimination.

~??????? Foster belonging through support for diversity.

5. Leverage Data and Analytics

Data-driven decision-making is a critical element of a successful HR strategy. By leveraging HR analytics, organisations can gain insights into key employment metrics and the effectiveness of HR initiatives. This allows for more informed decision-making and the ability to adjust in real-time, leading to better outcomes.

According to Harvard Business Review, “the best organisations see their people not only as individuals but also as a rich source of collective data that managers can use to make better decisions about talent.”

6. Prioritise Employee Well-being

The well-being of employees is crucial to the success of any organisation. Research by Gallup shows that well-being initiatives not only improve employee health but also enhance engagement and productivity. HR strategies should include comprehensive well-being programs that address physical, mental, and financial health.

Recent research shows that employee well-being is not headed in the right direction with 41% of employees report experiencing “a lot of stress.” It should be taken into consideration that stress varies significantly depending on how organisations are run.

Recent organisational solutions have included wellbeing apps or stress management training however research by Oxford University finds “little evidence in support of any benefits.”

So, what works? Changing the way people are managed at the organisational level, that is management practices, resourcing levels and having the tools they need to do their job.

7. Ensure Compliance and Risk Management

Compliance with employment laws and regulations is a fundamental aspect of any HR strategy. This involves staying up to date with changes in legislation and ensuring that all HR practices adhere to these laws.

Effective risk management practices should be in place to protect the organisation from potential legal issues.?HR's supports organisation to manage risk by identifying, assessing, and managing legal risks rather than actively avoid it.

8. Adopt a Flexible and Agile Approach

The business environment is constantly changing, and HR strategies need to be flexible and agile to keep up. This means being open to new ideas, experimenting with different approaches, and being willing to pivot when necessary. Agile HR practices, such as continuous feedback and iterative goal setting, can help organisations stay ahead of the curve.

?

Developing a successful HR strategy requires a deep understanding of both your organisation’s goals and the latest best practices in the field. By aligning HR with business goals, focusing on employee engagement and well-being, fostering continuous learning, and leveraging data, you can create a strategy that drives success and builds a strong, resilient organisation.

Staying informed and adapting your strategy based on the latest research will ensure that your HR practices remain effective and relevant.

?

If you need help with your people strategy, send me a DM.

?Let's connect.

If you'd like to have a discovery call to discuss your people needs, Book a Free Discovery Call

Research Sources

Gallup | “State of the American Workplace” report.

Gallup | “Employee Engagement: A Leading Indicator of Financial Performance”

Bersin | “High-Impact Learning Culture: The 40 Best Practices for Creating an Empowered Enterprise”.

McKinsey | “Diversity Wins: How Inclusion Matters”

Harvard Business Review | “Competing on Talent Analytics.”