HR Strategy

Need for a functional strategy for HR

The pace at which the corporate world is changing is rapid. Markets, corporate goals and business models are being redefined and in some cases radically changed. HR is therefore a key factor in achieving corporate success by ensuring that skills and know-how are available at the right time and in the right place. To this end, the HR department should not only react to requirements, but actively meet future challenges. A functional strategy, based on the corporate strategy, derives a specific vision and objectives for a division. The focus of a functional strategy is generally on the development of the department. In HR, key issues such as employer brand, corporate culture and recruiting are added, which have an impact beyond the company and on the market.

What added value does an HR strategy offer?

The topic of personnel strategy holds great potential. Targeted personnel development, well thought-out personnel requirements planning, strategy-oriented creation of new positions as well as future-oriented filling of existing vacant positions, but also appropriate change and diversity management can be decisive success factors for corporate success. Most HR departments lack the methods and content competence as well as the target picture ability to build up the functional strategy. How can a successful HR strategy be developed and implemented in three steps?

Structure and objectives of a successful personnel strategy

1. for this purpose, the status quo is determined in a first step
2. derived from these results, a future target image is defined in the second step.
3. Finally, the transformation from the status quo to the target situation is achieved by defining packages of measures and a concrete implementation plan.

It starts with an analysis of the corporate strategy in relation to the future direction of the company and relevant aspects that have an impact on the area of personnel and the workforce. These include, for example, planned organic or inorganic growth, or a reduction in or entry into new business areas. The analysis of the corporate strategy is accompanied by an examination of the status quo of the HR department by relevant HR decision-makers and representatives of senior management in order to obtain a comprehensive internal and external perspective. With the help of a SWOT-analysis, which can be developed in focus interviews or workshops, for example, a comprehensive view and evaluation of the HR department is achieved. In order to structure the internal strengths-weaknesses analysis, the evaluation can be based on certain criteria, such as the structural and process organisation, the existing HR IT systems, employee and personnel instruments, as well as customer and service orientation. By subsequently prioritizing the identified improvement potentials, the analysis phase provides an initial starting point for the HR strategy. Based on the results of the status quo, the second step is to develop and define the target picture. The target picture describes the basic orientation or vision of HR for the next three years. To this end, the role that HR wants to play in the future and its self-image are clearly formulated. Based on this vision, three to five strategic fields are defined and possible contents are derived. For example, the corporate culture and the employer brand can be one strategy field.

How can I define and successfully implement an HR strategy

Three aspects are essential for the successful implementation of the personnel strategy. In order not to create castles in the air, the first thing to do is to always keep an eye on the results of the first phase by planning the measures to be taken, taking into account the available capacities and the existing instruments and systems. Secondly, to ensure that employees support and accept the implementation of the HR strategy, they are involved in the transformation of the HR strategy in good time. The orientation of HR work is additionally anchored in the corporate context by making the target image visible through company-wide information and communication. Thirdly, the HR strategy should be understood as an agile and iterative process that needs to be revised in the course of an annual review and adapted to any needs for action that arise.

Our consulting services and how 4C can support you in your HR strategy?

We support you in the analysis of the corporate strategy with regard to the effects on HR. The conception of the HR strategy with a SWOT analysis, the definition of the target picture as well as the creation of a benefit map and the derivation of measures and task packages for the implementation of the HR strategy. In addition, we also support you during the operationalisation and implementation. The aim is to provide you with a clear orientation and implementation plan for the future of the HR organisation with the help of the HR strategy.

If you would like to know more about the development and successful implementation of an HR strategy, please contact us.