Should HR be a Part of the Strategy Process?

HR management is related to the executives of your company through strategic HR planning.

The majority of mid-to-large-sized businesses have a strategic plan in place to assist them in achieving their objectives. Financial plans are frequently completed by businesses to guarantee that their objectives are met. While workforce plans aren't as widespread as they once were, they're still vital.

Even a minor business may create a strategic plan to help it make future decisions. Your business may establish a strategic HR strategy based on its overall strategic plan, allowing you to make HR management decisions today to support the firm's future trajectory. From a budgetary aspect, strategic HR planning is equally crucial expenditures like recruiting and training can be factored into your organization's operational budget.

Defining your organization's goal, vision, and values is an important part of strategic planning. As an example, Andrew Fleck Child Care Services' Mission, Vision, and Values are as follows:

Goal - We provide quality, inclusive services to children and their families that fulfill their various developmental, early learning, and child care requirements.

Vision - Collaborating with the Ottawa community to provide every child with access to multi-service assistance, early learning programmes, and child care.

Values -

  • Perfection
  • Leadership
  • Integrity
  • Management
  • Responsiveness

Your mission, vision, and values should all be reflected in your strategic HR strategy.

This section contains the following sections:

        1. Overview of Strategic HR Planning

        2. The Process of Strategic HR Management Planning

        3. Writing down the Strategic HR Plan

        4. Putting the Strategic HR Plan into Action


1. Overview of Strategic HR Planning

Strategic HR planning's ultimate objective is to:

  • Ensure that your business has adequate human resources to meet its strategic goals and operational plans - the right people with the right skills at the right time.
  • Keep up with local and industry social, economic, legal, and technical changes that affect human resources.
  • Maintain flexibility so that your company can deal with change if the future turns out to be different than expected.

Strategic HR planning estimates the firm's future HR demands after assessing the company's current human resources, the external labor market, and the future HR environment in which the organization will function. Strategic planning differs from operational planning in that it examines HR management concerns outside of the firm and develops future scenarios.


2. The Process of Strategic HR Management Planning

1. Identifying current HR capacity

The first phase in the strategic HR planning process is to examine the organization's present HR capability, which is based on the strategic plan. Your present staff's knowledge, skills, and competencies must be identified. This may be accomplished by creating a skills inventory for each individual employee.

The skills inventory should include more than just the talents required for the job. Make a list of all of the talents that each employee has displayed. Recreational or volunteer activities, for example, may need unique skills that are relevant to the group. Education levels, certifications, and any further training should all be supplied.

The performance evaluation form of an employee can be checked to see if the individual is ready and willing to take on additional responsibility, as well as to look at the employee's present growth goals.


2. Predicting human resource needs

The next step is to forecast future HR needs based on the company's strategic objectives. For human resource forecasting, demand and supply predictions are necessary.

The following questions must be answered: 

  • How many employees will be necessary to meet the organization's strategic goals?
  • What positions will be required to be filled?
  • What types of abilities will be required?

When projecting HR demand, consider the problems you'll have in meeting your personnel needs in light of the external environment.

  • What influence will the external environment have on our HR requirements?


3. Analyze the gaps

The next step is to determine how large the gap is between where your firm wants to be in the future and where it is now. The gap analysis, in respect to the current situation, entails determining the number of personnel as well as the skills and abilities required in the future. In addition, you should analyze all of your firm's HR management practices to see if any may be improved or if any new ones are required to help the company go forward.

The following are some of the questions that must be addressed:

  • What new employment will be required?
  • What additional abilities will be needed?
  • Do our current personnel possess the necessary skills?
  • Are people now working in occupations where they can put their abilities to good use?
  • Is there a sufficient number of managers and supervisors?


4. Developing HR strategies to assist organizations in achieving their objectives

There are five human resource approaches that can assist your organization in meeting its future requirements:

1. Strategies for training and development

2. Recruitment methods

3. Strategies for outsourcing

4. Strategic collaboration

5. Rebuilding strategies



3. Writing down the Strategic HR Plan

Once your organization's HR strategies have been defined, they should be formalized in an HR plan. This is a short document that outlines the essential assumptions and tactics that result, as well as who is responsible for the strategies and when they will be implemented.


4. Putting the Strategic HR Plan into Action

Following the completion of the HR strategic plan, the next stage is to put it into action.

Acceptance of the plan.

Ensure that the board chair, executive director, and senior management endorse the strategic HR strategy. If everyone has been involved from the beginning, it may seem like a superfluous step, but receiving final affirmation is always a good idea.



The strategic HR plan must be presented to all levels of the company.

  • How the plan relates to the organization's overall strategic plan
  • Will any changes to HR management rules, practices, or actions be made to support the strategic plan?
  • How any changes in HR management will affect staff, including a timeframe if appropriate
  • How can each employee contribute to the plan?
  • How staff will be supported through any changes
  • How the organization will be different in the future

When it comes to changes impacting people, it's tough to provide too much information (but all too easy to tell too little). The degree of information should, however, vary depending on the audience.


Legislation and regulations

Ensure that the acts you're considering are legal, as well as comply with your organization's constitution and bylaws.


Organizational requirements

There are ramifications for space and equipment, as well as current resources like payroll and benefits programs, whether you increase or decrease the number of personnel.



Regular revisions of human resource planning are required. You'll need to acquire the data needed to evaluate the new plan's success. Benchmarks must be set and assessed throughout time to see if the approach is successful in achieving the specified objectives.



Planning for HR is a continuous process. As your organization changes, it is important to periodically review and update your HR strategy. The secret is to select strategic initiatives that complement the objectives of your business.

Being a business partner to an expanding company is part of HR's responsibilities. As a result, both smaller and larger businesses can benefit from strategic HR management. In fact, a clever HR strategy can assist small businesses in quickly and with a stronger talent pool in reaching the 50-employee milestone.


kashish budhiraja
An excellent digital marketing & social media practitioner with over 3 years' experience in digital marketing. Done Certified diploma (Computer application, web design (specialization in WordPress), project management, and digital marketing. A certified AdWords and SEO Professional. Working Recently as a Digital Marketing Manager in DSB Law Group.