Recent research has given proof to what great talent management pros have always known: HR plays a front-and-center role in running a successful business.
- World-class HR organizations operate at 25 percent lower cost and with 31 percent fewer staff. And, they’re almost twice as likely to be true strategic partners in their business.
Being strategic in your HR processes absolutely matters – and helps guarantee you a seat front and center at the table when it comes to guiding your organization into the future.
But, how do you make it happen?
Here are four tips for creating a system for an ongoing, effective HR strategy for your company:
Prioritize talent management.
As a human resources leader, you should report directly to your business owner or CEO. Without exception. And, you should have the staff, technology, resources, and decision-making power you need to be able to contribute strategically to your business. This step is fundamental.
- Hint: Maybe your business isn’t big enough for an HR leader yet. If so, don’t be discouraged. See below …
Make sure your HR team has the bandwidth it needs to be successful.
Especially for smaller organizations, it can be challenging to afford a fully-functional HR department that can also support strategic business development. For more and more companies, the answer lies in partnering with a professional employer organization (PEO). When you enter an agreement with a PEO, you regain control of your company and its operations while turning over any or all HR-related responsibilities and liabilities to this business partner. This ensures that all HR strategic goals are met – and frees up your time to focus on other key aspects of running your company.
- According to the National Association of Professional Employer Organizations (NAPEO), companies that work with PEOs grow faster, have lower turnover, and are 50 percent less likely to go out of business.
Involve HR in business development.
HR management needs to be involved in business development decisions from the start. Think about it. How can you make plans or changes that involve new products or services or a change in future direction for your organization, without considering the impact these moves will have from a staffing and employee relations standpoint? Because without the right people on board, none of it will be possible.
Make sure your HR strategy complements your overall business strategy.
It’s people who turn an organization’s strategic plans into action. And, it’s HR that ensures you attract and retain the right team. So, by taking a strategic approach that goes hand in hand with your overall business direction, HR has more power than almost any other function when it comes to enhancing productivity and profitability. Rather than looking at HR as a cost center, change your mindset and recognize it as the key strategic business center that it is.
Ready to Take Your HR Strategy To The Next Level?
If your goal in 2022 is to strengthen your HR strategy – and in doing so, improve your overall business strategy, strength and success – a PEO partnership can offer the solution you’re looking for. To learn more about this and other creative talent management options that may be right for you, contact Key HR today.
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- On December 15, 2021
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