Understanding Strategic HR And How It Benefits Your Businesss

Human resources (HR) is an essential function of any organization that handles the management of people. HR professionals are responsible for recruiting, training, and developing employees, administering employee benefits, and ensuring compliance with employment laws and regulations. In recent years, HR has evolved from being a support function to a strategic partner in the organization. Strategic HR is a proactive approach to HR management that aligns HR strategies with organizational goals and objectives. Throughout this blog, we’ll discuss strategic HR and its benefits.

Understanding Strategic HR

Let’s start with the basics – what does strategic HR mean? Strategic HR is a long-term approach to HR management that aligns HR strategies with organizational goals and objectives. It involves developing and implementing HR policies and practices that support the organization’s mission, vision, and values. Strategic HR is proactive, flexible, and responsive to changes in the business environment. It involves integrating HR strategies with overall business strategies to achieve the organization’s goals. Strategic HR professionals tailor their recruiting, training, employee management, and planning processes to the company’s broader goals and objectives.

Tori Moldovan, PHR, GMS’ Client Services Manager, emphasized, “One of the things I see the most is that we are so reactive in the business world when something happens with our employee base. Strategic HR is a proactive approach, and while it takes time to plan and develop up front, it saves you countless hours on the back end when something occurs that impacts your organization. Time is money, so invest upfront in your processes, employee programs, employee benefits, and training. Keep this on your radar and have quarterly evaluations on what’s working and what isn’t working to ensure you catch issues before it happens. This is a core function of what keeps a business a well-oiled machine!”

Benefits Of Strategic HR

As an HR professional, taking a strategic approach to HR management positively impacts your business in many ways. Keep the following benefits in mind:

Attracting and retaining top talent

A main benefit of strategic HR is attracting and retaining top talent. When you align HR strategies with organizational goals, HR can develop recruitment and retention strategies that target the right candidates with the skills and experience needed for the organization’s success. In addition, strategic HR can create a positive work culture that supports employee engagement and retention.

Improved employee performance

Strategic HR can improve employee performance by developing training and development programs that support employee growth and development. By aligning training and development with organizational goals, HR can ensure that employees have the skills and knowledge needed to perform their job effectively. Strategic HR can also implement performance management systems that provide feedback and recognition to employees for their contributions to the organization.

Increased productivity

Another benefit of strategic HR is that it can increase productivity by developing policies and practices that support employee productivity. For example, if you implement flexible working arrangements, HR can support employees in achieving a work-life balance, which ultimately leads to increased productivity.

Cost savings

Strategic HR can lead to cost savings by developing HR policies and practices that support efficient and effective HR management. Implementing a human resources information system (HRIS) allows HR to automate payroll, benefits, and risk management processes, reducing the need for manual processes and paperwork.

Compliance

Ensuring your business is compliant with employment laws and regulations can be done through strategic HR. By developing and implementing policies and practices that comply with local, state, and federal laws, HR can minimize the risk of legal liability and fines.

Consider Partnering With A PEO

As businesses continue to grow, they often face a multitude of challenges when it comes to managing their HR effectively. From attracting and retaining top talent to ensuring compliance with ever-changing employment laws and regulations, HR can be a complex and time-consuming task for businesses of all sizes. This is where a professional employer organization (PEO) such as Group Management Services (GMS) can be a valuable asset.

When you partner with GMS, we provide you with access to HR technology platforms that streamline your processes, such as payroll, time and attendance tracking, and performance management. These technologies ultimately help you save time and reduce errors. In addition, we help you align your HR practices with your overall business goals. We help businesses develop HR policies and procedures that foster a positive workplace culture and promote employee engagement and retention. We’re a one-stop shop where you can receive all the help you need from an HR partner. Contact us today if you’re ready to simplify your HR processes.