What is Strategic Human Resource Management and how can it benefit your organization?

The Society for Human Resource Management, SHRM, defines Strategic Human Resource Management as Human resource management practices that create value for an organization and its stakeholders by optimizing people’s performance and employee engagement and supporting organizational learning, flexibility, and adaptiveness (SHRM 2015). However, what exactly does this mean in practice? How can your organization get started with Strategic Human Resource Management, or SHRM? This article will give you the basics on what SHRM means and how your organization can benefit from incorporating it into its daily routine.

What is Strategic Human Resource Management?

Strategic Human Resource Management is a type of HR management that focuses on developing an organized plan to meet the needs of a company. Strategic HR management helps companies create competitive advantages by focusing on recruiting, training, and retaining employees. It also includes aligning HR policies with organizational goals, facilitating effective communication among managers and employees, and providing benefits that are attractive to potential new hires. The end result is a happier workforce that contributes more towards the success of the company.

Why Are Organizations Becoming More Interested in Strategic HRM?

Organizations are becoming more interested in HRM because of the rise of digital transformation. Employee management software has allowed organizations to more strategically manage their workforce and reduce costs. This has created a need for strategic HRM practices to be implemented at all levels of the business. Strategic HRM includes everything from creating and implementing a strategic plan, developing strategy, hiring employees, retaining employees, and implementing talent retention programs. Strategic HR practitioners may use employee management software that uses artificial intelligence to analyze data sets such as absenteeism or turnover rates in order to find correlations that can help identify areas that need improvement.

How Does Strategic HRM Play a Role in Business Strategy (Leadership, Organizational Culture, etc.)

Strategic HRM has many benefits to an organization. These include, but are not limited to:
Leadership development Organizational culture Talent management Performance management

Employee management software (like Workstatus) can help with strategic HRM by helping you manage the talent acquisition process, onboarding process, and performance reviews. Strategic human resource management can also be an important part of business strategy. Organizations need to decide whether they want a high-performance workforce or a low-cost one. For example, if one wants a high-performance workforce then one would need to invest more in strategic HRM such as training and development programs. In contrast, if one wanted a low-cost workforce then they would only invest in strategic HRM when absolutely necessary.
The Strategic HR Manager must play a role in guiding this decision. Strategic HR Managers must have knowledge of their strategic goals and know which type of workforce will best align with them. They also need to understand what external factors could affect their strategic objectives and develop contingency plans that will allow them to maintain their desired type of workforce during those times.

Why Should Employees Care About HR Strategies?

A strategic HR plan will help you find, hire, develop, and retain the best people. A well-executed HR strategy will also ensure that you’re getting the most out of your employees. That means they’ll be more productive, engaged in their work, more satisfied with their position, less likely to leave or need to be terminated. It will also lead to fewer training costs and a lower turnover rate. Additionally, a strategic human resource management plan ensures that there’s a culture of innovation by promoting an atmosphere where employees feel empowered and valued for their contributions. By empowering employees, companies foster an environment that encourages innovative ideas and creativity. An optimal company culture leads to higher productivity, reduced absenteeism, and greater engagement among staff members.

Conclusion

In summary, SHRM can help take a business from just surviving to thriving. By implementing a strategic HR plan, you’ll make sure that you have the right people in place to execute on your company’s mission. This means that you’ll have happy employees who are engaged with their work, which will translate into happy customers who are engaged with what they buy from you.

SOURCE: Strategic Human Resource Management: What is it and how can it benefit your organization?