We all know by now that the human resources of an organisation have a big role to play in determining the latter’s success rate. The relationship is simple and vital too – the more productive the people, the higher and faster the company would climb the success ladder.
But is it all so easy as it sounds? Perhaps not. Hiring people is one thing, managing them and constantly driving them towards the accomplishment of common goals is another.
This task falls on the shoulders of an organisation’s Human Resources Department, which is entrusted with what is known as strategic human resource management. Let’s further understand this concept and learn the key steps involved in the process.
What is Strategic Human Resource Management?
Simply put, the HR managers in an organisation are the connecting thread between its human resource asset – the people – and its overall objectives. In order to keep this thread strong and going, the company’s HR becomes responsible for ensuring that the company’s most valuable asset (people) is able to achieve its short and long-term goals. For this, the HR wing needs to bring to the table certain effective strategies in the form of effective hiring, training, and rewarding methods.
According to a recent survey conducted across organisations in the US, nearly 79% of the employers opined that they face serious employee retention and engagement issues. The scenario is more or less similar in India and most other countries across the globe. This is where strategic human resource management can help.
5 Key Steps to Strategic Human Resource Management
- Understand the organisational goals well: Only when you are clear about what your company intends to achieve in the short and long run, would you be able to communicate it to your people or devise plans to keep them effectively engaged to achieving the set goals.
- Assess your employee’s abilities: This is a very important step in effective human resource management. Knowing the individual skills and weaknesses of the employees can help you plan better on how to effectively and optimally utilise them to the best of their efficiencies. Such strategic planning also paves the path to reach out to the company’s goals. Having an inventory of skills works best here as it will help you assess which employee has expertise in which specific domain.
- Forecast the company’s future HR needs: You need to weigh out the demand-supply ratio here by accurately predicting the number of employees currently available with the desired skills to meet the company goals (supply) and those required in future to facilitate faster achievement (demand).
- Define employee tools needed: Your resources would need a specific set of tools and programs to perform and complete the job assigned. This requirement would vary across departments and even employees (based on your skill assessment conducted earlier). As the HR personnel, you need to work in close coordination with each department to figure out their needs and provide for the same.
- Execute the HR management strategy: Now comes the time for action. Once you’ve completed all the above steps, you now need to work on developing your current skill set as well as expanding staff to meet future company requirements. The process involves hiring, designing training modules, as well as conducting periodic reviews to identify problem areas in the process if any. This can be done through employee feedback received during exit interviews or appraisal cycles. The key here is never to ignore people feedback; take cues from it and suggest corrective action before retention becomes a major issue to handle.
Research suggests that companies with formal employee engagement programs enjoy 26% more revenue growth annually than others. This explains the growing need across sectors to keep the human resources motivated to act and achieve.
This is why Times TSW, an initiative by Times Professional Learning, an avenue to support learn and grow efforts of working professionals, has introduced the Executive Programme in Strategic Human Resource Management (EPSHRM). This one-year Executive Programme in Strategic Human Resource Management is designed by IIM Calcutta and is offered in collaboration with Times TSW to aspirants all across India. The programme is delivered via an interactive online platform and encompasses 5-day in-campus sessions at IIM Calcutta. Join the Executive Programme in Strategic Human Resource Management from IIM Calcutta, one among the top 3 business schools in the nation, and attain validated strategic human resource management skills that will help you attain immense success in your professional life ahead.