Strategic human resource management is the connection between a company’s human resources and its strategies, objectives, and goals.
Strategic human resource management aims to:-
· Advance flexibility, innovation, and competitive advantage.
· Develop a fit for purpose organizational culture.
Improve business performance.
For strategic human resource management to be effective, human resources (HR) must play a vital role as a strategic partner when company policies are created and implemented. Strategic HR can be demonstrated throughout different activities, such as hiring, training, and rewarding employees.
Strategic HR involves looking at ways that human resources can make a direct impact on a company’s growth. HR person needs to adopt a strategic approach to developing and retaining employees to meet the needs of the company’s long-term plans.
Why is strategic human resource management important?
Many companies are more likely to be successful when all teams are working towards the same objectives. Strategic HR carries out analysis of employees and determines the actions required to increase their value to the company. Strategic human resource management also uses the results of this analysis to develop HR techniques to address employee weaknesses.
The following are benefits of strategic human resource management:-
· Increased job satisfaction.
· Better work culture.
· Improved rates of customer satisfaction.
· Efficient resource management.
· A proactive approach to managing employees.
· Boost productivity.
Seven steps to strategic human resource management
Strategic human resource management is the key to the retention and development of quality staff. It’s likely that employees will feel valued and want to stay with a company that places a premium on employee retention and engagement. Before you implement strategic human resource management, you will need to create a strategic HR planning process using the steps below:
· Develop a thorough understanding of your company’s objectives
· Evaluate your HR capability
· Analyze your current HR capacity in light of your goals
· Estimate your company’s future HR requirements
· Determine the tools required for employees to complete the job
· Implement the human resource management strategy
· Evaluation and corrective action
To Strategically implement HR management, we have to follow these 7 steps