Strategic Human Resources Management 101: A Primer for Success

In the last decade, human resources departments have evolved from policy policing and benefits administration to a far more strategic role of engaging and developing the workforce. This trend towards acquiring, growing, and managing talent—what most analysts refer to as strategic HR—has largely been made possible by innovations in software technology. But what exactly is strategic HR and how can it help your organization?

Traditionally, HR has been viewed as a staff function to oversee issues, such as employee data and company policies. HR officers were often the select few who had access to this critical information. Today, however, strategic HR takes these processes, such as hiring and talent management, out of the silo—making it easier to share valuable data across the organization. And it's this type of information that can advise key business decisions.

The adoption of web-based HR software has been a key driver in the development of strategic HR. Best-of-breed HR software solutions keep both managers and employees actively involved in managing, tracking, and sharing information. By automating core HR processes, organizations can focus more of their time improving the organization from a strategic perspective—such as hiring better people, setting performance goals and improving talent effectiveness.

HR That’s Ahead of the Curve

As HR is becoming more strategic, the role of HR professionals is evolving as well. No longer are HR personnel focused simply on administrative or policy issues. Rather, they are taking on broader roles to act as organizational advocates, coaches and consultants. And this new hybrid of HR staff is often responsible for overseeing three core strategic HR functions:

• Talent management includes strategies for the management of employees through their entire life cycle within an organization. Interviewing, hiring, on-boarding and evaluating employee performance are all important functions of the talent management process. Software solutions offer a range of best of breeds and one-stop shops for automating and streamlining these functions, allowing HR professionals to focus on managing the talent pool, planning for succession planning and keeping employees engaged. Example products would include: Taleo TM, iCIMS Talent Platform, and Saba.
• Learning management relates to an organization’s best practices for continuous employee development. Tracking qualifications and licensing, executing policy update courses, monitoring completion of ongoing training requisites and managing new employee training are all essential to the continued success of many organizations. Learning management systems such as Digital Chalk, GyrusAIM and Plateau Learning offer user-friendly tool-kits to successfully implement employee development initiatives without breaking a sweat.
• Workforce management refers to the tools and processes managers rely on to more effectively keep tabs on issues related to scheduling and compliance within an organization. This includes time and attendance tracking, time off and vacation requests, leave of absence management and scheduling. Workforce management systems like Kronos Workforce Central, TimeForce and ViewSUITE give leaders the tools they need to easily manage the daily administrative tasks – so they can focus on higher-level planning and decision-making.

It’s Time to Evolve to Strategic HR

Although there is a move toward implementing strategic HR, the core functions of human resources will continue to be a necessary part of the daily operation. Employee records will continue to be tracked, benefits will be administered, and EEOC compliance will be monitored for years to come. Strategic HR exists as an extension of traditional HR, and cannot be successfully implemented without the continued execution of these core functions.

In fact, Richard Vosburgh, VP of Talent & Organizational Effectiveness and Chief Talent Development Officer at KEMET Electronics, advocates the value of both the “essential and the transformational” functions of HR. In an article featured in HR People & Strategy, Vosburgh says organizations growing beyond traditional HR “must first ensure that the transactional and legally mandated parts of the HR job are managed in some way.”

Given the rise of web-based, software-as-a-service (SaaS) systems, companies of all sizes have better access to cost-effective solutions that can help streamline their HR processes. Once organizations improve HR automation, Vosburgh says it’s easier to take the “big leap” and evolve HR into “an effective internal consulting organization that addresses talent and strategic, change-oriented issues.”

Strategic HR Impact Felt Across the Organization

It’s no surprise that the organizations that have mastered the essential functions of HR are seeing a positive impact on their organizational effectiveness. In 2007, a study conducted by The Hackett Group, HR Best Practices, found that organizations, with what they called “World Class HR,” had several key outcomes as a result: lower labor costs, increased HR efficiency and drastically reduced turnover.

As many can attest, though, growing the scope of HR from administrative to strategic is not an overnight process. It takes a high level of cooperation and collaboration, an adaptable growth strategy, and, most importantly, serious dedication. So how did these organizations do it? Quite simply, they empowered HR professionals to make key decisions to improve company culture and increase productivity. More specifically, the organizations in the study accomplished four things:

• Created organizational clarity
• Designed Informed decision-making structures
• Fostered departmental integration
• Increased company vitality

A Strategy For Getting Strategic

For any company ready to make the most of their people—and processes—getting started is often the hardest part. How does one begin to develop a strategy for cultivating talent? Vosburgh suggests designing HR from the outside in. In other words, determine what your customer or client requires or your organization at any level. Then, he says, identify “what kind of organizational capabilities and individual talents are needed to deliver?”

When answering these questions, Vosburgh also suggests tapping into other divisions in your organization with what he calls “dual-hatting projects.” For example:

• Assign your HR manager to develop an internal branding and company culture campaign.
• Work closely with the controller to develop realistic and informed hiring and growth strategies.
• Ask your hiring managers create a section in the application process specifically suited to their division.

If you are serious about moving toward strategic HR, be prepared for some growing pains. These can be minimized, however, by taking time to put in the due diligence now. For example, researching best practices and comparing software to meet your unique needs can help ease this transition in establishing an effective, strategic HR framework that can grow with your organization over time.