HR adds value to business strategy as long as it does not focus only on administrative activities such as calculating salaries and selecting and hiring new employees, failing to take a strategic position within it.
In this way, the human resources function becomes purely mechanical and routine, leaving aside its ability to contribute to the functioning and growth of the organization.
The most successful organizations are those that consider human capital as their most valuable asset.
That said, the human resources objective must be oriented towards ensuring that the organization has the right personnel to carry out its functions, with the up-to-date skills and knowledge to add value to the organization, as well as having the appropriate motivation to contribute their best in order to achieve the company's objectives.
To carry out this function, a Human Resources department that does not have a strategic position and is also exclusively dedicated to 'solving emergencies' in the other areas of the company will not be of help.
HR contributes to business strategy by being aware of both the market environment in which the organization operates and the particular characteristics linked to business objectives, strategies and goals.
Define the type of culture expected within the company as a basis for achieving business objectives.
Study the circumstances and characteristics of the labour market, understanding its situation and its impact on the talent management plan that you wish to adopt.
Talent management in the organization must be based on a strategic perspective of the business, which encompasses the market scope and the general objectives that the company wants to achieve, instead of being focused on day-to-day emergencies, since in the latter scenario it would be aligned with the most common needs of the company but not with its long-term objectives.
That said, the objective of the Human Resources area should not focus solely on “reducing the staff turnover rate”, “maintaining a good working environment”, among others, but should also contribute in other aspects such as the following:
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HR objectives within the business strategy
Increase sales by...
- Train the sales team on the company's mission, vision and products through a perfectly designed onboarding.
- Conduct employee surveys on product perception: How do they perceive them? What would they improve? What additional things would they offer?, etc.
Improving employee perception of the company...
- Support in the development and execution of appropriate Employer Branding.
- Correctly, timely and continuously communicate to employees the advantages of working for the organization.
- Ensure that the company's mission and vision are respected, transmitted and adhered to by employees.
Contribute to the reduction of costs in...
- Evaluate whether outsourcing some activities such as recruitment and selection can contribute to cost reductions.
- Low-cost but high-impact organizational climate plans.
- E-learning versus in-person training reduces a large part of the costs associated with training.
business strategy business strategy business strategy business strategy
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These, among other objectives, can help demonstrate the strategic impact of this area on business performance.
The functions that are part of the day-to-day running of the company, such as payroll management, selection of new collaborators, event logistics, etc., while important, are not strategic. We can think about how to delegate or outsource them, reducing costs, maintaining response times and additional quality, leaving us with time and a fresh mind to contribute to business decision-making and strategies.
In conclusion, to truly contribute to the growth of the organization and play a representative role within the company, the HR area must focus on strategically managing talent by frequently studying the circumstances of the market environment in which the organization operates and the needs and challenges it faces to achieve its objectives.
The department must stop focusing solely on day-to-day needs and instead be aware of both internal and external factors that influence its performance and the achievement of business objectives.
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