Strategic Human Resources
What is Strategic Human Resource Management?
Strategic Human Resource Management (SHRM) is the practice of aligning an organisation's human resource policies and programmes with its overarching business objectives. Unlike traditional HR, which often focuses on administrative tasks, SHRM takes a holistic view of talent management. This begins with the application and interview process and extends through onboarding, career development, and even alumni engagement. The aim is to ensure that every interaction an individual has with the organisation contributes to achieving both short-term and long-term business goals.
The Significance of SHRM
The Talent Imperative
In today's competitive landscape, talent is a critical differentiator. Organisations are increasingly recognising that they need talent more than talent needs them. This shift in dynamics makes SHRM not just important but essential for business success.
Beyond Compliance and Payroll
HR professionals are no longer confined to administrative tasks like payroll and compliance. They are strategic partners in the business, responsible for building and growing the company's most valuable asset—its people.
Align with Business Objectives
The first step in implementing SHRM is to define the organisation's business goals clearly. Whether it's revenue growth, market share expansion, or customer acquisition, these objectives should guide the HR strategy.
Human Capital Planning
Once the business objectives are clear, translate them into human resource needs. This involves capacity planning, role creation, and collaboration with department heads to understand their specific requirements.
Job Descriptions and Performance Metrics
Job descriptions should go beyond listing qualifications; they should attract candidates who align with the organisation's culture and objectives. These descriptions can also serve as performance metrics and identify areas for employee development.
Internal Mobility and Employee Investment
SHRM recognises that employees' needs and aspirations will change over time. Therefore, it focuses on creating opportunities for internal mobility, which is not only cost-effective but also enhances employee engagement and retention.
Measure, Analyse, Adjust
The effectiveness of an SHRM strategy can only be gauged through continuous measurement and analysis. Key metrics to track include retention rates, turnover, and other performance indicators that align with business objectives.