Importance of aligning HR Strategy to Business Goals

The Importance of Having an HR Strategy That Is Aligned to Your Business Goals

HR professionals wear many hats in their efforts to support their company’s goals, whether that means managing compensation, helping build employee engagement, or developing an effective onboarding program. That’s why it’s so important to have an HR strategy aligned to your business goals. Without one, you can’t be sure you’re doing all you can to ensure success throughout your organisation.

At BluSkyHR, we understand the importance of this essential HR tool; that’s why we offer customised creation of an HR Strategy that is tailored to your business needs. Here is an example of the type of HR Strategies we create for clients:

Why your HR strategy needs to align with your business goals

If you’re a business owner, there’s a good chance you have a defined set of business goals and values. These are important metrics for any successful business, whether it be to meet revenue targets, decrease employee turnover, or increase productivity.

However, if you aren’t tracking your progress against these objectives, how do you know they are being met? Ask yourself these questions:

• Are your employees performing at their best?
• Are hiring decisions based on qualifications and experience or feelings and connections?
• Is your company headed in a direction that makes sense, or is it just moving along aimlessly because no one has been assigned to steer it in one direction or another?

These are all questions that many companies don’t ask themselves often enough. It seems like such a simple concept; align your people and your business goals. If you do, everything else falls into place… it just happens a lot quicker when you have a plan in place.

An external HR company can help put that plan into action and begin working with you on strategies aligned to make sure your people fall in line with your business goals and vice versa. And it doesn’t matter if you run an independent firm or a multi-national corporation, every company needs support from time to time, especially when people management is involved.

Having clear goals will improve morale and employee engagement and empower your entire workforce. And while you may have thought about it previously, there’s never been a better time than now to take action.

Not convinced? Here are some other reasons why aligning your HR strategy with business goals is imperative for any company hoping to remain competitive in today’s economy:

1. Transparency promotes trust among employees, making them feel valued by their employer. When employees feel valued by their employer, they will naturally be more engaged at work, resulting in higher productivity across all areas of your organisation.
2. By creating policies that align with your business strategy, you’ll foster a culture of loyalty among your workforce. This is because employees will now understand why their organisation has specific policies in place and will be more likely to embrace them as a result.
3. When employee engagement is high, absenteeism declines, which results in improved overall productivity. As a company leader, you want your employees to make the most of their time at work and reach their targets.
4. Employee retention rates are higher among organisations whose policies are aligned with their business strategy because employees feel like they can grow within their company due to a deeper level of trust and understanding.

When you might need to outsource your HR department

In a growing company, creating a customised HR strategy can feel like a difficult task when everyone puts all their time into their own KPIs. Outsourcing your human resources department offers a lot of advantages for growing companies.

• There is no shortage of great talent out there, but there’s a shortage of time and focus.
• Outsourcing also frees up internal staff members to focus on activities that are truly core to their roles, such as developing strategies that help keep customers coming back time and again.
• There are many benefits for larger companies that outsource their human resources department, such as taking cost and potential legal risks off their shoulders and ensuring faster and more thorough compliance with local labour laws.
• Keeping your business’s most significant expenditure, your staff, in check can help you stay competitive. In a market where margins can be unpredictable, every little bit helps!
• Keep up with industry trends by having access to your outsourced team’s expertise on hiring, payroll, benefits management, compliance management and more! Plus, they will work closely with your internal teams so that everyone stays aligned.

These are just a few examples of what we do. No matter how great your company is, it would help if you had a strategy to ensure it continues down a path that leads towards success. If you get into any business without specific goals and methods for measuring progress against those goals, you risk random chance affecting your success rather than anything systematic or purposeful.

If you’re looking for more support in your human resources department, we can help!

BluSkyHR has been built on a foundation of employee success and company growth. We have provided our clients with cost-effective and tailored HR solutions that get results. If you’re ready to get started, contact us today! We look forward to supporting you in what you do best.