International Human Resources Day was on Monday 20th May this year. It was started in 2019 by the European Association for People Management as a day dedicated to celebrating the positive contribution HR professionals can make to business and individuals on a national and international scale. It is a day where the team at Dakota Blue, with strong backgrounds in contributing at a national and international level, take the time to reflect on how we are using these broad skills to contribute to business success through providing strategic HR support at a grass roots level.
For those who are not really sure what “HR does” … it is more than just a function for managing recruitment, payroll, performance, disputes and those tricky exits. Over the years HR has evolved into a critical strategic partner that, when done well, can significantly impact businesses’ commercial success.
In this blog we share how HR’s strategic partnering with business owners can drive sustainable growth and why businesses should leverage HR expertise to gain a competitive edge.
The Evolving Role of HR in Business Strategy
Historically viewed as mainly an administrative function, HR’s role in strategic planning and execution has grown exponentially with the increasing recognition of employees as key business assets. In today's fast-paced and ever-changing business environment, the ability to attract, retain, and develop ‘talent’ is crucial for staying competitive. HR professionals are at the forefront of this challenge, using their insights into effective personnel management to influence and drive business strategies.
Five Strategic HR Practices that Drive Commercial Success
1. Employee Recruitment and Management:
HR plays a fundamental role in crafting strategies for effective recruitment that aligns with the company's long-term goals. By deploying effective recruitment techniques that focus on an effective process from start to finish, HR can ensure that the business not only attracts, but also retains, the right talent to drive commercial success.
2. Employee Development and Succession Planning:
Investing in employee development is a strategic HR activity that ensures an organisation has a pipeline of skilled people ready to step up when needed. Tailored training programs, management and leadership development initiatives, and career progression plans are critical for preparing employees to take on larger roles, directly impacting the company's ability to grow and scale effectively.
3. Enhancing Employee Engagement and Productivity:
HR strategies that focus on boosting employee engagement can lead to significant improvements in productivity and, consequently, profitability. Engaged employees are more motivated, perform better, and are less likely to leave. HR initiatives tailored to the needs of your business, such as employee recognition programs, engagement surveys, private health care offerings and wellness plans contribute to a more committed workforce.
4. Leading Change:
Experienced HR professionals with a good understanding of what drives and motivates employees to perform, play a crucial role in managing change within a business, whether it's through mergers, acquisitions, or internal restructures. Their understanding of organisational dynamics and employee concerns allows them to facilitate smooth transitions, minimise disruption, and ensure that the workforce remains focused and efficient during periods of change.
5. Leveraging Data for Strategic Insights:
Modern HR professionals use key business performance data metrics to provide critical insights that can influence business and employee strategies. From turnover rates and hiring success metrics, to employee performance and satisfaction scores, combined with business productivity data, HR’s strategic use of analytics can guide decision-making processes and optimise operations.
For us, International Human Resources Day is not just a celebration of HR professionals but a recognition of the strategic value we bring to businesses. As HR continues to evolve, its role as a “strategic business partner” becomes increasingly integral to achieving commercial growth and success. Companies that identify and engage with great HR professionals are better positioned to adapt to market changes, innovate, and stay ahead of the competition.
When was the last time you took a moment to evaluate how your HR strategies align with your business goals. Have you considered ways to further integrate HR into your strategic business planning processes? If you have been thinking for a while this is something that needs focus in your business, give us a call to see how we can help.