Strategic human resource management provides a framework linking people management and development to long-term business goals and outcomes
Strategic HRM focuses on longer-term resourcing issues within the context of organizational goals and the evolving nature of work. It is also the foundation for other HR strategies, such as reward or performance, determining how they are integrated into the overall business strategy.
People are fundamental to sustainable value creation, which is why they are often referred to as a business’ ‘most important asset’. The idea of ‘human capital’ is important here. Employees’ knowledge, skills and abilities are assets which the organization should invest in and use to create sustainable value for the organization and its various stakeholders.
One important area of HR strategy is strategic workforce planning and succession planning. This helps organizations meet their future skills needs and support their long-term business goals.
Plan and adapt
In a fast-changing economy some degree of planning is vital to ensure the organization is developing enough capacity to adapt to new trends and take advantage of emerging opportunities. Workforce planning involves putting business strategy into action. It must therefore be an iterative process – feeding information upwards on the capability and capacity of the workforce to deliver – and acting on forecast need for skills and capabilities to take the organization forward.
We would love to help you link your human resource management with the strategic business goals of your organization. Are you curious why and how? Feel free to contact us!