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By: Helios on January 13th, 2021

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How to Create the Best HR Function: Link HR to the Business Strategy

Business Management & Strategy

As an HR consulting and outsourcing firm, we often hear from business leaders who want to get more out of their HR function. We find that the biggest opportunity is the chance to redefine and reset the expectations that HR’s role doesn't have to be solely administrative.

With the right professionals and leadership, HR can be a function that strategically defines how the organization’s goals will be achieved through its talent. Read below to discover how HR activities support the organizational strategy.

Four Steps to Align HR with the Business Strategy

So, how does HR go about aligning their strategy? Your HR team should:

  • Understand the business strategy and current state challenges. Consider the goals and expected outcomes for the organization. Is the organization pursuing a growth strategy? Or, is it trying to turn around underperforming business lines?
  • Identify how people contribute to organizational growth and success. Seek to understand what you are asking your workforce to do in service of the goals. What new or different skills, competencies, and behaviors are needed? What are the best functions and positions needed to deliver on these expectations?
  • Design and implement your HR talent strategy. Once you know where the organization is headed and what it requires of its people to get there, HR must determine the gaps between its current workforce and what is required to accomplish the organization’s business goals. Define strategies needed to acquire, train, develop, performance manage, and reward the very high-performing talent that will carry your organization into the future.
  • Measure your HR strategy. Whether you use an HR scorecard or other metrics, these measures indicate if your HR talent strategy is successful or when a course correction is necessary.

As a business leader, it's important that you empowering and expect your HR function to make a strategic contribution. An organization's greatest competitive advantage is its people. Partner with your existing HR or consider finding a strategic HR leader who can help your organizational goals.