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In today’s digital era, the role of HR has been at risk of being downgraded to a position different from those that come into core business goals. Furthermore, the challenges of handling operations with a constantly evolving workflow made the HR leaders emphasize on improving workplace productivity to assist businesses in staying ahead of their competitors. This gives birth to the concept of Strategic Human Resource Management (SHRM). A more advanced approach to HR management in addition to the daily HR practices of any organization.
What is Strategic Human Resource Management (SHRM)?
Strategic Human Resource Management means managing HR operations in such a way that they connect the workforce with the core goals, objectives, and strategies of the company. It covers the following areas of HR operations:
- Establishing practices that promote flexibility to give an edge over competitors
- Ensuring superior workplace productivity
- Building fun and an engaging workplace
Being the most modern approach to HR management, the HR department must play a major role in its successful implementation. HR leaders should develop a deep understanding and knowledge of SHRM to become active partners in developing and implementing company policies.
SHRM can be implemented in almost every HR Operation: recruitment, onboarding, development, and rewarding performers. This approach provides HR with several ways to directly and positively impact the company’s overall growth. So, you must devise strategies linked to employees’ retention and development in cooperation with the organization’s goals.
In today’s world, it is not simple for any business to overcome HR challenges. There are multiple branches of the HR ecosystem that might confuse employers leading to wrong decisions. Hence, there could be a great loss of efficiency and productivity, leading to a slow business growth rate.
A Comprehensive Approach: Strategic Human Resource Management
Strategic HR management is unlike any traditional system, but it works in tandem with every department to form a clear understanding of the company’s goals. Companies implementing strategic HR policies have an HR department connecting with every business vertical, including marketing, operations, or IT. It assists in creating business plans that are well-synced with company goals and overall company objectives.
Through such an integrated system, the HR department becomes a key player in business growth and development. It means HR will no longer be just a service to hiring, onboarding, and paying employees. Moreover, strategic HR management also lets you focus on the proper utilization of opportunities and talent available within the organization to benefit everyone.
Significance of Strategic Human Resource Management (SHRM)
Organizations that know the importance of collaboration among all the teams while working towards common goals are likely to succeed faster than their counterparts. By implementing strategic HR principles, you can quickly analyze and improve employees’ performance leading to value addition for the organization.
Here are some benefits of Strategic HR Management:
- Improved work culture
- Boosted productivity
- Increased employee retention
- Better resource management
- Enhanced customer satisfaction score
- A proactive way to manage the workforce
If any company’s HR workforce isn’t aware of strategic HR planning and management, they can use Workstatus, an employee management software which can help them in the successful implementation of the strategic HR model.
However, to properly implement strategic human resources planning practices, the HR and the business leader (s) should be on the same platform to address challenges such as-
- Lack of engagement among stakeholders
- Cross-cultural issues
- Disconnect due to global operations
- Evolving technologies
How Does Strategic Human Resource Management Work?
Strategic HR planning is vital in developing human resources and retaining the best talent. It helps businesses to make their employees feel appreciated and valued, so they are always motivated to work with your company. But before moving ahead, you will require effective HR strategy planning with the help of the following steps:
- Identify the gaps in HR processes within your organization
- Investigate why these gaps exist, and who is affected by them
- Determine what changes need to be made based on the results of your investigation
- Brainstorm with HR professionals and key stakeholders to generate ideas for making these changes happen.
- Select the most promising ideas based on their impact on employees, cost to implement, and impact on other parts of the organization (like business units).
- Document these ideas as a list of actionable that can be used in your organization’s overall strategic HR planning process.
Strategic HR management has become necessary for every business, regardless of industry or field. Thus, it is not only meant for companies or enterprises with a large workforce. Any small or medium business can also implement SHRM principles to improve its speed of growth.
What are the Objectives of SHRM?
Strategic HR planning stresses on resolving issues like-
- Hierarchy structure
- Performance challenges
- Organization culture
- Role matching
- Effectiveness of operations
However, there are five key objectives of SHRM principles:
1) Recruitment: Hire the right people for the job.
2) Retention: Keep good employees from leaving the company.
3) Development: Provide training and career advancement opportunities so employees can grow within the organization.
4) Compensation: Pay employees fairly based on their skills and experience level.
5) Engagement: Make employees feel like their opinions matter by including them in decision-making processes.
You must be wondering.
Is it possible to ease the process of SHRM implementation?
Read the next section to know the answer.
Simplify Strategic HR Management With Workstatus
Workstatus is the most powerful employee engagement tool to help businesses quickly implement SHRM principles. It allows you to easily track how much time your employees spend on different tasks to ensure they’re being as productive as possible.
With Workstatus, you’ll know when someone needs help with their work or when they’re being overly aggressive about work, compromising their personal life. This way you can prevent the burn-outs leading to serious issues.
With the in depth insights that Workstatus provides, you’ll be able to make smart decisions about handling different teams based on real data rather than just guessing what’s happening in each department.!
Here is what you will get with Workstatus:
- Idle time tracker
- Compare procrastination vs. productivity
- Absence/Leave management
- Active screenshots
- Employee scheduling
- Workforce analytics
- Increase workforce engagement
- Lower employee turnover
- Improve performance management processes and practices
- Increase workforce diversity
- Maximize ROI from HR investments
Get started with Workstatus here>>
Ques. Can you tell me the 7 steps in HR planning?
Ans. The 7 steps in HR planning are given below:
Step 1: Identify the goals of the organization
Step 2: Determine the resources required to achieve those goals
Step 3: Calculate staffing needs based on those requirements
Step 4: Hire employees who are a good fit for your organization & goals
Step 5: Train your new hires so they can be effective at their jobs
Step 6: Keep track of employee performance, so you know when someone needs additional help or when they’re doing well
Step 7: Provide ongoing feedback so people know how they’re doing and how they can improve
Ques. What are the objectives of strategic HR management?
Ans. The main goals of strategic HR management are given below:
- To provide flexibility at the workplace
- To build a fit-for-purpose company culture
- To promote innovation among all the teams
- To give a competitive edge to the organization
Ques. What are the 5Ps of strategic HR management?
Ans. The 5Ps of strategic HR management are: