Running a small business is a whirlwind. You wear countless hats, juggling everything from marketing and sales to product development and customer service. Human resources (HR) often gets relegated to a side hustle, a box to check with basic tasks like payroll and benefits administration. But what if HR could be more? What if it could be a strategic partner, helping you make strategic decisions that drive growth and propel your business forward?
That’s the power of Strategic Human Resource Management. It’s not just about ticking boxes; it’s about aligning your HR activities with your company’s overall vision, mission and goals.
Let’s face it, traditional HR tasks can feel like a never-ending cycle, leaving little time for the big-picture thinking that fuels success. Strategic Human Resource Management flips the script. It uses your business goals as a roadmap for all HR activities.
What Is Strategic Human Resource Management?
Strategic Human Resource Management aligns the HR function with the overall objectives of the business. Typically, HR personnel are more task-oriented. Consequently, most of their time is likely focused on ensuring that the daily deluge of administrative HR tasks — like payroll processing and benefits administration — gets done.
Unfortunately, this approach constrains time needed for long-term thinking and planning. Instead of ignoring operational tasks, strategic human resource management simply uses the current business objectives as a framework for those tasks. Attracting, developing, and retaining employees (as well as all other HR tasks) get done in a way that supports the strategic mission and helps the company reach its goals.
Why Does My Small Business Need Strategic Human Resource Management?
You might be thinking, “Strategic Human Resource Management sounds practical for large corporate companies, but do I really need it for my small business?” The answer is a resounding “Yes”! Here’s why Strategic Human Resource Management is a game-changer for small businesses:
- Alignment with Objectives: In the daily hustle, it’s easy to lose sight of the bigger picture. Strategic Human Resource Management ensures your HR and your team’s efforts directly support your company’s goals. No more scattered initiatives – everything you do in HR, from recruitment to performance management, is laser-focused on driving success.
- Improve Company Culture: Company culture is the invisible force that shapes everything from employee satisfaction to productivity. Strategic Human Resource Management helps you build a positive, engaged workplace culture that attracts and retains top talent. Through initiatives like employee engagement surveys and feedback programs, you can identify areas for improvement and foster a culture where employees feel valued and motivated.
- Talent Pipeline: Imagine a future where crucial roles never go unfilled. Strategic Human Resource Management helps you identify and fill skill gaps by creating a talent pipeline. This could involve offering internship programs or creating clear career development pathways within your business.
- Business Growth: Ultimately, Strategic Human Resource Management fuels better overall business performance. By ensuring your HR strategy is data-driven and directly supports your goals, you’re creating a powerful engine for growth. Improved employee engagement leads to a more productive, innovative, and loyal team, leading to higher customer satisfaction, increased revenue, and a competitive edge.
Taking the First Step Towards Strategic HR
Ready to make the shift to Strategic Human Resource Management but feeling overwhelmed? Don’t worry, it’s not about a complete overhaul. Here’s how to get started with Strategic Human Resource Management, even with a small team:
- Know Your People: The first step is to analyze your workforce’s skills and how they align with your company’s goals. Conduct skills gap analysis by mapping your current workforce skills against the skills needed to achieve your goals. Review your job descriptions and identify any gaps and create a plan to address them.
- Plan for the Future: Look ahead. Based on your company’s goals and growth plans, forecast future skill needs. Will you need to hire new talent with specific skills, or can you upskill your existing workforce? Develop a talent acquisition strategy that aligns with your forecast.
- Performance Matters: A culture of performance is crucial for success. Strategic Human Resource Management helps you develop a system for setting clear performance expectations, providing regular feedback, and offering opportunities for growth and development. Through training, coaching, and feedback programs, you can empower your employees to reach their full potential. Help them connect their individual goals to the company’s mission, fostering a sense of ownership and purpose.
- Leverage Technology: HR technology can be a game-changer for small businesses. For example, Focus HR’s HR technology platform can help you:
- Eliminate errors in essential tasks like payroll and reporting.
- Enable employees by helping them better manage their own HR data through a simple, mobile-ready interface.
- Automate key tasks to get them off your plate and keep them running smoothly.
- Improve Onboarding to better find, attract and onboard new employees quicker and more smoothly.
- Deliver a more exceptional employee experience with training and collaboration tools fit for SMBs.
Invest in Your Success
Strategic HR isn’t just about working harder, it’s about working smarter. By aligning HR with your business goals, you unlock a powerful engine for growth. Remember, you don’t have to go it alone. Small and midsized business owners often turn to HR outsourcing providers, like Focus HR, for support with critical and strategic HR management so they can focus on running their business.Focus HR can provide the expertise and resources you need to develop and implement a strategic HR plan tailored to your specific needs. Schedule a free consultation with our experts today and see how we can help you achieve the growth you want to see.
