Why should HR be involved in business strategy planning?

business strategy

Every organization that wants to be successful needs to start by creating an efficient business strategy. Nevertheless, it is not an easy task since there are many factors involved. If you want to obtain great results, you have to take into account all the information that is coming from different sources within your company. However, there is one area of your corporation that can help you achieve your overall business goals. We are referring to the HR leaders. Contrary to what many may believe, your HR can have a great impact on your organization. Moreover, by having a solid HR team you can lead your company toward success.

In this article, you are going to understand why your HR specialists should be involved in your strategic business planning. Consequently, you will see the reasons why your HR can help you bring your strategy to life. Let us observe:

  1. Why is HR critical for strategic business planning?
  2. What are the reasons to include HR in strategic business planning?
  3. How can HR impact business strategy?
  4. What are the roles of HR in shaping business strategy?
  5. How can Connect Staff help your HR department?

1. Why is HR critical for strategic business planning?

business strategy

When it comes to strategy planning, corporations need to have valuable information that helps them make the best decisions to meet their goals. In this regard, HR leaders are starting to be included in the business strategy of a company.

This is a trend that has been gaining more popularity in the past few years. Many CEOs say that the opinions of their HR experts and specialists are very important for the senior management of a company. Moreover, the data provided by them have greater weight when it comes to strategic business planning.

But, why are HR leaders so important in this matter? Here we have some of the reasons:

  • They provide valuable insight into the workforce.
  • HR provides data that help streamline hiring and recruitment processes.
  • With the information from HR, a corporation can optimize its human capital.
  • HR experts are knowledgeable about the company’s culture so they know what is best to expect in terms of personnel.
  • HR management is already building a workforce according to the company’s needs.

As we can see, these are just some of the reasons why HR is critical for strategic business planning. Keep in mind that having a solid HR team can improve many areas of your business too. Such as offsetting the labor shortage in the UAE. Thus, having a robust HR department can make a big difference.

2. What are the reasons to include HR in strategic business planning?

Since we already know that HR leaders are critical for business strategy planning, we have to understand why. CEOs are starting to include HR information and advice on their business decisions, and they have many reasons to do it.

Some of the most important are the following:

2.1 Overcome skills gaps

Many companies face the challenge of the skill gap. This refers to the empty positions that are hard to fill with qualified top talent. Organizations even say that the skill gap is one of the main problems they face.

If a company does not have the necessary talent to carry out important tasks, they end up facing skill gaps. And, this is a problem because it does not allow the corporation to achieve its full potential.

Nevertheless, if you have a solid HR team, they probably already have been dealing with this issue. Moreover, HR leaders can identify exactly the levels at which the skill gap is affecting the company.

For example, an HR expert will surely know if the company is lacking outstanding entry-level, mid-level, or executive-level talent.

Thus, this is valuable knowledge for creating a business strategy. With this information, the company can create its long and short-term business plan to get rid of the skill gap. With the help of your HR team, you will be able to decrease the talent shortage.

2.2 Boost efficiency

Another reason why you should include your HR leaders in your strategic business planning is that they can help you increase human capital efficiency across your company. This is because they handle important information regarding turnover.

The turnover rate is a challenge for many companies because no matter what they do, they do not seem to know how to increase employee retention. However, if you start analyzing your data and listening to your HR experts, you will be able to take advantage of their unique insights and reduce turnover while increasing efficiency.

2.3 Better recruiting strategies

As we mentioned before, HR leaders are dealing with your workforce daily. Thus, they know which strategies you can implement to attract, hire, and retain top talent for your company.

Moreover, you will be able to create a streamlined recruitment process by working alongside your HR experts. You can analyze each step of your recruitment and check where you can reduce inefficiencies. Consequently, you can solve staffing issues and start allocating resources to improve your current method.

The most important is to look for candidates that align with your business goals, and your HR specialists are the ones that can help you with this matter.

3. How can HR impact business strategy?

business strategy

Your HR leaders handle several aspects of your corporation. Thus, they deal with many tasks, such as marketing strategy, retention plans, and more.

Therefore, they can provide valuable insight regarding how to align the corporation for effectiveness by incorporating the best staff with the required skills. Given that HR is crucial for creating a successful business strategy, it is equally important to understand how it impacts the process.

3.1 Vision and values of the organization

When a business starts its operations, its only goal is to continue growing and expanding to have a larger revenue. Although this is the right thing, a corporation needs to remain true to its vision and values. In this regard, HR leaders are very helpful.

By incorporating your HR specialists into your strategic planning, you will get support from leaders that are well-versed in the company’s purpose and the values that drive it.

Therefore, you will remain centered around your company’s vision and values and this can help you stay focused. Your management will start reflecting and considering how they can create a strategy that makes the workforce remain faithful to the essence of the business.

3.2 People and talent priorities

Increasing the revenue of the corporation may be the main goal, but it is also important to have a solid workforce that allows the business to achieve it successfully. For this reason, HR leaders are excellent for strategic planning since they can provide great information about the people strategy of the company.

Some of the areas in which HR can impact strategic planning are the following:

  • Attract, hire and retain the best talent for the business.
  • Enhance policies of diversity and inclusion.
  • Leadership development.
  • Role design.
  • Performance management strategies.
  • Establish the people’s requirements.
  • Ensure the organization stays aligned to the plan.

3.3 Engage employees

Although the top management is in charge of creating an excellent strategy, it is important to know the opinion of the workforce. After all, they need to retain their employees. Even if you have a successful strategy but you do not know how to engage your new and existing hires, you can face failure.

Therefore, HR specialists have privileged access to the opinions of employees. They can gather information regarding the strategies that are being implemented to determine if they are successful or not. Moreover, your HR department can act by creating and executing plans to introduce the changes you are going to make in the corporation.

As you can see, they can prepare the employees for changes ahead. This can have a great impact on the success of your plan.

4. What are the roles of HR in shaping business strategy?

Your HR team, besides creating an outstanding marketing plan for your business, can help you shape your business strategy.

They have all the tools and capabilities to help your organization achieve its goals. It is a unique approach that helps you understand how to develop a successful strategy and how to define it properly.

If you are unsure about how your HR leaders can help you, you need to know the current ways in which HR is shaping strategic business planning.

4.1 Model organizational values

One of the most valuable assets of your company is your workforce. Creating a strategy for your business is one part of the process, but after that, you have to implement it.

Including your HR team in your strategic planning with help them be aware of the changes in advance. Thus, they can model the behaviors and actions you want to see, and this will have a great impact on your current employees.

A new strategy can bring many changes, and you do not want to risk losing your employees due to this. Thus, if you want to remain your valuable asset, you have to use your HR team as a powerful tool to role your organizational values.

4.2 Improve your company’s culture

Having a toxic workplace and a bad company culture is detrimental to your business. Thus, your HR team can help you in this matter by helping you improve your current business environment.

Your HR team is perfect for evaluating your organization’s culture and how it aligns with your current strategy. Since they are familiar with your company’s mission, vision, and values, they can help you develop a strategic plan by considering all of these aspects.

You can gain crucial information from your HR leaders on the current state of your organization’s culture. In addition, they can help you determine how your culture should evolve to support the plan. Similarly, the plan can be adapted to the current culture if everything is working perfectly.

4.3 Practical implementation

As we mentioned before, your HR team can be a great support for creating your strategy, and also for executing it. It is important to have a tactical implementation of your plan so you can evaluate which aspects are working and which need a modification.

Furthermore, your HR team can help you determine the following:

  • What aspects do you need to address to make your organization go forward?
  • Who will receive the most and least impact with this strategy?
  • What actions do you need to carry out to ensure success?
  • How do employees feel about the changes?
  • Is the company’s culture being affected by the changes?
  • What are the modifications you have to make to your current plan?
  • How can you engage your employees on the plan?

5. How can Connect Staff help your HR department?

Creating a successful business strategy for your organization does not have to be a struggle. As long as you have a solid HR department you can achieve your business goals. In Connect Staff we offer our staffing solutions so you can start building a robust workforce.

With Connect Staff, you will be able to run your HR efficiently and smoothly. You will not have to worry about hiring and recruitment since we will take care of everything. Moreover, you can overcome labor shortages and any other issue it may arise thanks to our support.

On Connect Staff we can help you with your HR needs for achieving an outstanding business strategy. Call us at +971 43 316 688 to talk to one of our representatives. Or, if you prefer, you can write us at contact@connectstaff.ae and send all of your inquiries to receive a prompt response.

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