Your HR department could outsmart your competition. Not with resumes, but with strategy! Welcome to the Strategic Human Resource Management. It’s where people’s decisions fuel business wins.
Increasingly, businesses need more than that. More than “HR 101” and basic controls and competencies. They need growth, productivity, and performance.
What Is Strategic Human Resource Management?
Strategic Human Resource Management goes way beyond just taking care of HR functions.
Traditionally, Strategic HRM takes a view of HR goals relative to the business’s overall purpose. It ensures that every action HR takes – recruitment management, hiring, firing, staff supervision, and training. All this is actioned carefully to support the business goals surrounding people’s bottom-line success.
While HR can only be reactive to change like a butterfly effect, SHRM plans for change. It makes HR intentionally proactive, change-oriented, and adaptable to the future.
Why Is Strategic HRM Important?
As with every business, there are goals. The important thing is that accomplishing those goals requires a lot of careful thinking, all about people, behaviors, actions, resources, and planning.
So why does Strategic HRM matter?
- Aligns business objectives and talent
- Strengthens the culture of the organization
- Assists in decision-making with data
- Ensures compliance and limits risk
With a clear HR strategy, you should be able to think quickly, act more deliberately, and always be in front of the change.
Essential Elements of Strategic Human Resource Management
- Workforce Planning
Anticipate staffing needs long-term.
- Talent Acquisition
Once again, focus on quality and hiring the correct individuals, not going quickly.
- Training and development
Upskill all employees constantly.
- Performance Management
Make your goals clear for your employees!
Engagement with employees in performance levels using feedback & evaluations.
- HR Technology Integration
Utilize an HRMS platform such as Savvy HRMS for things like:
- Automation
- Analytics
- Integration for communication
SHRM versus Traditional HRM
| Factor | Traditional HRM | Strategic HRM |
| Focus | Daily | Long-term |
| Role | Administrative | Advisory/Strategic |
| Impact | Operational | Business-wide |
| Tools | Manual | Automated, AI-enabled |
Strategic Human Resource Management is evolving HR to be a decision-maker instead of simply being a supporter.
How to execute Strategic HRM?
It’s an easy four-step process:
1. Understand your business objectives
Understand your vision and mission.
2. Assess your current HR landscape
Get a grasp of all aspects of your workforce structure, skill set, or system.
3. Determine HR strategies
Align people plans with business needs.
4. Measure success
Metrics help monitor your progress and provide quick adjustments.
It’s not a one-time endeavor.
Value of Strategic Human Resource Management.
When executed properly, SHRM produces:
- Enhanced employee engagement
- Employee retention
- Rapid growth of the business
- Strong employer branding
- Better compliance and governance
And most importantly, to your people, it creates a positive employee experience.
Conclusion
It gives shape, clarity, and weight to everything the HR function does. The key to this connection is linking the HR activity to the strategy of the company to build the business of the future.
Ready for Strategic HR?
If you are ready to get the most from your HR Team as a business partner, the right tools will take you there.
Savvy HRMS makes it simple. It is designed to support you in implementing Strategic Human Resource Management at every level with automated workflows, sophisticated analytics, and intelligent integrations.
Get started with Savvy HRMS today and evolve your people management.
FAQs
- Is SHRM reserved for larger businesses?
No! Any size business, large or small, can apply SHRM concepts and methods! Not the size of the business.
- How is SHRM different from HR strategy?
Strategic human resource management considers ways. That is from implementation & tracking to all the other ways of developing the process over time.
- Will I be able to automate SHRM?
Yes! In addition to managing talent, firms such as Savvy HRMS can offer automation. All in hiring, payroll, attendance, employee performance & many human practices.
- What skills will HR practitioners require to apply SHRM?
HR practitioners require skills in analytical thinking, business and workplace knowledge, leadership, calls to action, and communication.