The strategic plan is the engine that drives the company in the right direction. It’s taken for granted that marketing, sales and operations will develop specific strategies to drive the overall plan – but what about HR? If HR doesn’t have an effective strategic plan then your engine is not running on all cylinders.
In most organizations today, salaries and benefits are the biggest expense and employees are the primary asset, even if not recognized on the balance sheet. An effective HR strategic plan will help ensure your organization is getting value for its investment.
Consider the key elements of your HR strategy that will support or hinder your goals:
- Is your compensation strategy aligned with your current goals? Do you need to pay average salaries or above the market to attract and retain good people? Are your benefits competitive? Where do incentives fit? Do employees understand the compensation program?
- Does your recruitment strategy support the organization’s goals? Are you hiring people who fit with your culture and values? What future skills will you need to achieve your goals?
- Will your training and development strategy deliver the skills and competencies necessary to achieve the plan and at what expense?
- Do your performance management systems drive results?
- Does HR have the systems necessary to measure results and to keep management up to date?
- Does your workplace and environment support the goals? Does it need to be more collaborative or less? Do employees like coming to work? How flexible should your policies be – one size fits all versus individual treatment, or a balance?
If you haven’t asked these questions or revised your HR strategy lately, it may be time for a tune-up. Employees are an organization’s most important asset and an effective HR strategy will help ensure the organization arrives at its desired destination.