HR must collaborate with organisational leaders to align people management to broader business goals.
By Simon Kent
For HR to have an impact on the organisation it serves, creating and following a clear and actionable strategy is crucial. But what does that approach look like and what should it actually aim to achieve? Amanda Arrowsmith, people director at the CIPD, describes an HR strategy as “developing a comprehensive plan that aligns workforce and people management with the organisation’s business goals.” Such a strategy is created “by understanding business objectives, conducting workforce analysis, engaging stakeholders, and defining specific HR initiatives.”
“Ensuring implementation involves clear communication, leadership support, and continuous monitoring,” she adds. “Importantly, HR strategy should be a collaborative effort with other business leaders to ensure alignment with the wider strategic goals of the business, and a unified success.”
According to Nadia Alaee, people officer at Deel, the concept of having a strategy is frequently discussed in the boardroom, but unfortunately can still mean little in practice. Strategy has an almost ethereal nature, it can be difficult to pin down, and so HR must be on the front foot here—certain about what it needs to do, how to do it, and how that action will impact on fellow directors of the business and the business itself.
“When discussing HR strategy, HR professionals often talk about HR transformation,” notes Alaee. “This is the process of redefining and modernising HR practices and techniques to align with the digital age, streamline HR operations, improve the employee experience, and drive strategic value within the organisation.” – Nadia Alaee, Deel
Making this happen, rather than leaving it at a desired outcome, is the difference between an aspirational strategy and a practical one. The latter kind of strategy can give HR a leading position within a business, ready to drive the company forward through the view and influence it holds over each part of the business.
To affect change, an effective strategy must therefore be forward-looking rather than static or routed in the here and now. “It’s about preparing for what’s yet to come, says Alaee, “this means forecasting future HR needs, using data to look at insights and trends and make forwardthinking recommendations.”
Suzy Blade, Setfords Solicitors’ director of people and culture in the UK, agrees that strategy marks the difference between HR delivering an administrative and transactional role and it being a proactive function. Put simply, without a strategy, HR is reactionary, chasing around after the whims and requirements of other parts of the organisation.
For Blade, while an HR strategy will be flexible and adapt as the organisation evolves and its needs change, there are some elements that stay consistent—the attraction and retention of talent required by the business to succeed, for example. “It needs to create a robust pipeline of future leaders,” says Blade, noting how the strategy must also aim to increase employee satisfaction and engagement, and thereby reduce turnover. “Creating a positive work environment is essential, as it fosters a culture of innovation where teams are encouraged to stay ahead of industry trends and best practices,” she says. “Furthermore, the strategy should optimise HR and people-related costs without compromising the quality of services provided to employees.”
Nimesh Shah, chief operating officer for Feel Good Contacts makes the point that HR strategies must benefit the entire organisation. There is a sense of coordination required for advances to occur across the business—the strategy cannot be limited to only one area, because then the impact of any change or advance will be compromised. Without a company-wide impact, the strategy could actually make the business more fragmented and even damage progress.
Shah’s approach is to ensure HR goals are aligned with those of the business first and foremost but also that the strategy is fully comprehensive from an HR point of view, covering everything from upskilling employees to compensation to well-being initiatives to flexible work.
Rather than simply assume the strategy is doing good because it’s there, Shah also advocates the clear measurement of the strategy’s impact. “Use clear metrics to assess if the plan is working, results can be tracked daily to stop issues before they escalate,” advises Nimesh. “Predictive analytics tools can be used to measure the progress and failures of the plan.”
Blade describes being strategic as requiring focus on both internal and external dimensions of the business. Internally, HR and people teams need to be forwardthinking and focused on creating value through their own initiatives and practices. This means continuously innovating, improving processes, and enhancing the employee experience to drive organisational success. Meanwhile from an external point of view, HR and people teams must be closely aligned with overall business strategy and goals. “This alignment must be clearly communicated to the wider organisation to ensure synergy and that everyone is working towards common objectives,” says Blade.
“Simply being aware and ready to support isn’t enough,” Blade adds. “HR and people teams should be proactive in their contribution. They need to deeply understand the organisation’s goals and how various functions contribute to these goals. HR should actively contribute to shaping organisational strategies by offering insights into workforce capabilities, potential, and limitations.”
At the end of the day, an effectively created and actioned HR strategy embodies the ability of HR to make a real and valuable contribution to the wider business. Strategy is not just a mission statement—it is a practical and meaningful direction to be taken across the company. A set of clear actions which drive the business forward.
Internally, HR and people teams need to be forward-thinking and focused on creating value through their own initiatives and practices. Meanwhile from an external point of view, HR and people teams must be closely aligned with overall business strategy and goals.
An effective strategy gives HR a real place at the leadership table of a business and means the function must be considered and consulted as the business moves forward. But this also makes demands on HR professionals themselves. To create and enact an effective strategy, HR leaders needs a level of business acumen and critical thinking which enables them to understand and key into the wider organisation’s operation and success. It means taking on further responsibility for the business and going beyond just the administrative side of HR to ensure the future success of an organisation. But if HR is ready for the challenge the reward is clear ongoing recognition of the function’s value.
