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12 Steps to Creating An Effective Human Resource Strategy

The foundU Team
May 14, 2024
10 Min Read

A well-crafted HR strategy plays a vital role in an organisation's success. However, moving from a transactional to a strategic human resource function can take time and effort. 

Nonetheless, with the competitive advantages that talent-driven organisations enjoy, it's a task worth tackling. An HR strategy not only supports the management of your company's workforce but also aligns HR functions with long-term business goals. 

Human Resource Management Strategies 

A poorly planned approach to HR can reduce its impact on an administrative function and impede business growth. To create a successful human resource strategy that will transform your company, implement the following 12 key steps. 

Understand Organisational Goals

First, look at your business' broader objectives. Do your current HR strategies align? Encourage human resources professionals to work alongside senior management to realise future directions and goals and go from there. 

Assess Current HR Capacity

Done well, human resource management strategies evaluate your current HR capabilities against future needs. So, what does this entail? Conduct a skills inventory, assessing current employees' expertise, education and experiences. Next, determine whether workers have all they need to be as productive as possible or if you require investment in further supplies or new recruits. 

Develop Talent Management Strategies

Companies are the result of the people who work for them. Therefore, attracting, retaining, and developing talent should be at the forefront of every HR action plan. Consider how you can enhance the recruitment process, implement effective onboarding practices, and create development programmes that make employees want to stay. 

Enhance Employee Engagement

No one wants to work in a culture that doesn't recognise their worth. Start thinking of ways to boost employee engagement. Consider recognition programmes and regular feedback loops, and cultivate a positive corporate culture that values workers' well-being and encourages them to move on and grow from past mistakes. 

Implement Effective Communication Channels

As in personal life, open and honest communication is vital to the health of an organisation. Hold face-to-face meetings to create a receptive atmosphere, and know the importance of positive and constructive feedback. Also, master active listening. Paraphrasing what was said can be an effective method of showing that you heard and understood correctly. 

Foster Diversity and Inclusion

Everyone wants to work for a company that makes them feel like they belong, and promoting diversity and inclusion is an essential part of that picture. Cultivate an environment where team members drive innovation through their unique experiences, viewpoints, and backgrounds. 

To create a workplace culture that supports everyone, here are some strategies to get you started:

  • Use inclusive language.
  • Have a non-discriminatory policy.
  • Create safe spaces for your employees, for example, unisex and accessible toilets. 
  • Welcome workers' feedback.
  • Create a diversity training group to help develop and maintain these changes.

Our all-in-one workforce management platform is the ultimate solution if you're looking for a simplified way to recruit from the best diverse talent pools. 

Update Policies and Procedures Regularly

Updating company policies and procedures in line with changing laws and organisational needs is a must in all human resource management strategies. Start by assessing present company needs and legal requirements. 

Next, you'll need to draft comprehensive documents outlining guidelines for workers' conduct, performance expectations, and benefits, amongst other areas. Compiling a review schedule at least once a year is essential to ensure policies and procedures reflect current business operations and values. 

Utilise Technology and HR Analytics

With so much to consider in human resource strategy, it's wise to use data and analytics to help inform decision-making and improve HR operations. The right technology can examine employee behaviour, performance, engagement, and so much more. HR can then study this data to identify patterns, trends, and insights that can shape executive decision-making. 

Prioritise Employee Wellbeing

A company is nothing without happy workers. For employee productivity and retention, human resource strategy must prioritise well-being throughout the organisation and be embedded in its culture, people management, and leadership. 

Think about wellness programmes or flexible work options to reduce employee stress, increase energy levels, and enhance focus. Lastly, for a seamless employee experience, consider incorporating a self-service mobile app that allows company workers to clock in and out for shifts, view payslips, and request time off. 

Plan for Change Management

A good change management plan acts as a roadmap, specifying every action required to achieve the visualised end goal. Fundamentally, it should also ask questions about how changes affect your team and customer relationships. 

Continual, clear communication that explains to employees why change is necessary is paramount. Provide unambiguous guidance, facilitate open discussion, and welcome feedback to support workers as best as possible. Consider using visual communication, such as videos, charts and infographics, via a workforce management platform.

Ensure Legal Compliance

Understanding and complying with employment laws and regulations is an essential human resource strategy. Legal aspects include employment laws, equality legislation, and health and safety regulations. Carrying out regular compliance audits is crucial to gauge how well your company adheres to the set rules, standards, and codes of conduct. 

Evaluate and Revise the HR Strategy

The best human resource strategies result from thoroughly evaluating the business's strengths, weaknesses, threats, and opportunities. Assess organisational performance and adjust HR strategy based on valued feedback from employees and managers and changing circumstances. 

Sealing the Deal: Final Thoughts on Crafting Your HR Master Plan

Creating a winning human resource strategy is the ultimate exercise in problem-solving. By taking the time to understand your business and its objectives, the roadmap to success and growth becomes clear. 

Attracting and, more importantly, retaining the right employees is only possible by being a fantastic employer. In today's candidate market, at the bare minimum, you must offer excellent compensation, worthwhile benefits, and a work-life balance prioritising wellbeing. 

Resource strategies are fundamental and ever-changing, so now is the time to review how your company secures talent. foundU's single, all-in-one workforce management platform makes analysing data about your workforce a breeze. We streamline onboarding, simplify scheduling and offer an unrivalled payroll system. 

Using our revolutionary software, amongst numerous other options and features, you can:

  • Recognise demand patterns and skill gaps
  • At the best time, hire the right individuals 
  • Make capacity plans for optimal return
  • Select programmes to upskill your staff
  • Create a scenario plan for optimum efficiency
  • Keep your employees from burning out
  • Promote employee loyalty and growth

Book a demo or sign up for a free trial today to make your HR master plan a reality. 

 

 

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