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The Role of HR in Shaping Company Strategy

July 29, 2024

Gone are the days of HR solely focussing on paperwork and payroll. In today’s world, the role of HR has evolved into a strategic cornerstone of strategy. This is accomplished in many ways, from building the workforce the company relies so heavily on, to utilising data to inform business strategies. 

Why HR Matters for Strategic Direction

So, why does HR matter to a company strategy? Whilst many believe the traditionally strategic sectors like operations or sales have the largest impact on company direction and growth, HR actually has a unique positioning where they have a deep understanding of the workforce, its strengths, weaknesses, aspirations, and any talent gaps. This allows HR to attract and retain the top talent that are crucial to a company’s success. With recent advances in technology and data analytics, HR are able to quantitatively report on the company’s staff, giving them a strong strategic presence that is informed by data.

Here are some key ways HR professionals in New Zealand can contribute to shaping company strategy:

  • Workforce Planning & Talent Acquisition: Strategic workforce planning involves things like anticipating future skill needs based on the company's direction, skill gaps and how to strategically fill them, as well as any under performing employees. These involve a deep knowledge of the current industry, company direction, as well as what skills are most useful to the company. Additionally, being able to analyse the performance of employees involves the collection of useful data, and analysing it and having a strategic road map in place for all the findings.
  • Building a High-Performance Culture: Although the term ‘company culture’ has become somewhat overused, this is for a reason. A strong company culture is critical for employee engagement and productivity. This is commonly driven by the HR department, alongside their responsibility to get all of the stakeholders involved.
  •  Change Management & Communication: Change is, and will always be happening in every business. HR is positioned to make sure that this change is effective, and efficient. By communicating clearly and transparently with employees, HR can help to mitigate resistance and ensure a smooth transition to new strategies or processes.
  • Data-Driven Decision Making: As mentioned above, HR is no longer just about intuition. People analytics are becoming increasingly important. HR professionals can use data to make decisions about many areas of a business such as talent acquisition, performance management, employee engagement, and human capital planning. This data-driven approach can help optimise HR practices and ensure alignment with overall business goals. For more information on data-driven HR, read our blog here
  • Employee Wellbeing & Engagement: Employees who are engaged are more productive and more likely to stay at a company. HR plays a key role in developing programs that promote employee wellbeing, both physically and mentally. We cover how wellbeing impacts engagement and work more in-depth in our previous blog here.

The HR Seat at the Strategy Table

For HR to effectively contribute to strategic decision-making, they need to be involved in the conversation from the get-go. This means having a seat at the strategy table with other key decision-makers. Having HR actively participate in these discussions, they can bring a unique perspective to the table and ensure the company’s people strategy is aligned with the overall business objectives, and future plans.

Tips for securing a place at the strategy table as a HR professional:

  • Develop Business Acumen: By developing comprehensive knowledge beyond HR practices, and having a solid understanding of a business, its goals, and challenges can demonstrate a strong desire for a company's success and knowledge on how to do so.
  • Data is Key: Using your data analysis skills and leveraging people analytics to demonstrate the impact of HR initiatives on the bottom line can conclusively prove the impact HR has on a company and how it can support business goals.
  • Focus on Solutions, Not Just Problems: You can present strategic recommendations and solutions that address business needs, not just identifying problems with current employees.
  • Build Strong Relationships: By creating strong relationships with key decision-makers across departments, you can create a general atmosphere of collaboration with key areas of the business.

Putting it All Together

HR is a key area, overlooked by so many businesses. They are responsible for many key functions of a company, and help source the very people a business so heavily relies on. With the development of the field over recent years, HR’s role has shifted to that of a key strategic position. With advances in data analytics, talent acquisition, people development, human capital planning, and more, HR professionals can demonstrate expertise in these areas and have a strong influence on business strategies.

Looking to take your HR expertise to the next level?

At ParadigmHR, we offer a range of services and resources to help companies get the most of their HR departments, and offer data-driven insights that will aid in the strategic decisions of a business. Contact us today to learn more about how we can help you.

The Role of HR in Shaping Company Strategy

July 29, 2024

Gone are the days of HR solely focussing on paperwork and payroll. In today’s world, the role of HR has evolved into a strategic cornerstone of strategy. This is accomplished in many ways, from building the workforce the company relies so heavily on, to utilising data to inform business strategies. 

Why HR Matters for Strategic Direction

So, why does HR matter to a company strategy? Whilst many believe the traditionally strategic sectors like operations or sales have the largest impact on company direction and growth, HR actually has a unique positioning where they have a deep understanding of the workforce, its strengths, weaknesses, aspirations, and any talent gaps. This allows HR to attract and retain the top talent that are crucial to a company’s success. With recent advances in technology and data analytics, HR are able to quantitatively report on the company’s staff, giving them a strong strategic presence that is informed by data.

Here are some key ways HR professionals in New Zealand can contribute to shaping company strategy:

  • Workforce Planning & Talent Acquisition: Strategic workforce planning involves things like anticipating future skill needs based on the company's direction, skill gaps and how to strategically fill them, as well as any under performing employees. These involve a deep knowledge of the current industry, company direction, as well as what skills are most useful to the company. Additionally, being able to analyse the performance of employees involves the collection of useful data, and analysing it and having a strategic road map in place for all the findings.
  • Building a High-Performance Culture: Although the term ‘company culture’ has become somewhat overused, this is for a reason. A strong company culture is critical for employee engagement and productivity. This is commonly driven by the HR department, alongside their responsibility to get all of the stakeholders involved.
  •  Change Management & Communication: Change is, and will always be happening in every business. HR is positioned to make sure that this change is effective, and efficient. By communicating clearly and transparently with employees, HR can help to mitigate resistance and ensure a smooth transition to new strategies or processes.
  • Data-Driven Decision Making: As mentioned above, HR is no longer just about intuition. People analytics are becoming increasingly important. HR professionals can use data to make decisions about many areas of a business such as talent acquisition, performance management, employee engagement, and human capital planning. This data-driven approach can help optimise HR practices and ensure alignment with overall business goals. For more information on data-driven HR, read our blog here
  • Employee Wellbeing & Engagement: Employees who are engaged are more productive and more likely to stay at a company. HR plays a key role in developing programs that promote employee wellbeing, both physically and mentally. We cover how wellbeing impacts engagement and work more in-depth in our previous blog here.

The HR Seat at the Strategy Table

For HR to effectively contribute to strategic decision-making, they need to be involved in the conversation from the get-go. This means having a seat at the strategy table with other key decision-makers. Having HR actively participate in these discussions, they can bring a unique perspective to the table and ensure the company’s people strategy is aligned with the overall business objectives, and future plans.

Tips for securing a place at the strategy table as a HR professional:

  • Develop Business Acumen: By developing comprehensive knowledge beyond HR practices, and having a solid understanding of a business, its goals, and challenges can demonstrate a strong desire for a company's success and knowledge on how to do so.
  • Data is Key: Using your data analysis skills and leveraging people analytics to demonstrate the impact of HR initiatives on the bottom line can conclusively prove the impact HR has on a company and how it can support business goals.
  • Focus on Solutions, Not Just Problems: You can present strategic recommendations and solutions that address business needs, not just identifying problems with current employees.
  • Build Strong Relationships: By creating strong relationships with key decision-makers across departments, you can create a general atmosphere of collaboration with key areas of the business.

Putting it All Together

HR is a key area, overlooked by so many businesses. They are responsible for many key functions of a company, and help source the very people a business so heavily relies on. With the development of the field over recent years, HR’s role has shifted to that of a key strategic position. With advances in data analytics, talent acquisition, people development, human capital planning, and more, HR professionals can demonstrate expertise in these areas and have a strong influence on business strategies.

Looking to take your HR expertise to the next level?

At ParadigmHR, we offer a range of services and resources to help companies get the most of their HR departments, and offer data-driven insights that will aid in the strategic decisions of a business. Contact us today to learn more about how we can help you.

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