Aligning an organization’s business goals with its strategies for recruiting and retaining top-tier talent is no longer optional for growing corporations. It’s an essential function for any company that wants to stand out for its innovation and performance in a highly competitive environment.
CEOs are increasingly turning to HR professionals for guidance on how to maximize the potential of their top performers as well as those struggling to meet performance metrics. Through the online Master of Business Administration (MBA) with a Concentration in Human Resources program from the University of Wisconsin-Parkside (UW-Parkside), students learn how to integrate business strategy not only into their daily routines but also into their long-term visions for ensuring employees receive the training, engagement and upward mobility they need to succeed.
What Is Strategic Planning for HR?
Strategic human resources planning focuses on arranging departmental resources, programs, processes and people so that employees are placed in roles where they can most effectively accomplish business goals, according to Betterworks. The performance management company suggests starting with analyzing the organization’s current state of affairs. This process enables HR leaders to identify areas for improvement, as well as external factors that may impact business goals, such as market trends or fluctuations.
Executive teams and HR staff should ask questions as they begin the strategic planning process, beginning with, “Where are we now?” After assessing the current situation, staff should ask, “Where do we want to be?” and “How do we get there?” Once the team has identified the desired outcomes and the strategy for getting there, they should conclude with, “How will we know if we are on track to the intended destination?”
Often, HR professionals develop strategic plans tailored to a specific goal, such as creating succession plans for leadership positions or diversifying the pipeline of job candidates, according to Salary.com. Their tasks might include ensuring that employees are ready to take on new technological challenges, such as new software systems or machinery. In turn, HR professionals design talent management programs — including training, mentorship and performance management systems — so that employees gain the tools to achieve the company’s goals now and into the future.
Once the goals and programs are designed, HR professionals should identify several key performance indicators that are quantifiable and clearly tied to the performance outcome the company is seeking, according to Gartner. Those metrics, which will be tracked over the length of the strategic plan, could include talent mobility within the company, workforce participation in training sessions and internal hiring rates for different positions. From there, the HR department should create a concise statement outlining the core strategic goals for the next year and how staff across the organization can contribute positively to achieving those objectives.
Business Benefits of Strategic Planning Process
The measurable benefits of HR strategic planning for the entire business are clear, according to the Human Resources Management Handbook. Effective plans can prevent costly surprises that interfere with achieving business goals while also addressing skills gaps among existing employees so they are ready for the evolving requirements of their jobs. Strategic planning processes also lead to improved employee productivity, more accurate assessments of staff and skills needs, rewards systems that keep staff motivated, and the development of competitive pay and benefits packages to retain top performers.
As Forbes points out, strategic HR management can create a positive work environment where employees feel that their development needs are being met by their company, leading to reduced turnover and productivity. While the benefits are obvious to HR teams, they often must navigate challenges to ensure that strategic plans are implemented with the full backing of company leaders and employees, according to Betterworks. There may be resistance to change and adoption of new processes within the organization, even at the top of the corporate ladder. HR teams may also have limited funds to dedicate toward rewards for high-performing staff.
Build Human Resources Leadership Skills With a Human Resources MBA Online
Students enrolled in UW-Parkside’s MBA in Human Resources online program learn how to navigate these roadblocks and develop their own strategic plans. The Strategic Human Resource Management course examines how HR systems can be used to create and sustain competitive advantage. Another specialized course, Strategic Compensation, allows students to explore how they can utilize compensation and benefits systems to attract, retain and motivate qualified employees.
By the time they graduate from UW-Parkside with their human resources MBA, rising business leaders have the skills and experience necessary to implement strategic planning processes in rewarding careers as HR directors, recruitment managers, training leaders or employee relations managers. Graduates are therefore prepared not only to respond to today’s challenges but also to shape the future of work.
Learn more about UW-Parkside’s online MBA with a Concentration in Human Resources program.