Benefits of Strategic Human Resources Management
The introduction of the Strategic Human Resources Management is a significant challenge for the HR Department. It is also a major issue for the line management of the organization. The daily HR procedures change and line managers get new responsibilities. They have to take over tasks and duties of HR Managers; they have to become accountable for their teams in full. On the other hand, the introduction of SHRM comes with many benefits for employees, managers, Human Resources Department, the business, and the leadership team.
The organization usually implements the underlying principles of the Strategic HR Management in the moment of the crisis. It creates a pressure on Human Resources and line managers because they can see the introduction of SHRM as a part of the issue. The managers do not realize that the cause of the problem is the internal crisis; they just start feeling it when they are asked to change their attitudes and behaviors. This needs to be taken into the account that most benefits of SHRM introduction are not visible immediately; new practices and procedures need time to settle down.
It is important to realize that the Strategic Human Resources Management is entirely independent of the HR Strategy. The strategic approach is about the way how Human Resources work; it is not about the vision of Human Resources. The HR leaders tend to mix both approaches, but they are independent. The great company can align both, but it is a long journey. Most companies start with the introduction of the strategic approach to Human Resources which is closely followed by the updated HR Strategy (more on HR Strategies).
The main advantages of the Strategic Human Resources Management introduction can be divided into six areas:
- New ways of the Valuation of Assets and Human Capital Measurement;
- Strategic HR Planning;
- HR Processes Redesign and Rigor;
- HR Outsourcing of non-value added processes;
- Consistent Management of Functions and Skills;
- Human Resources Development in the organization;
The introduction of SHRM has the benefit that organization has to start measuring the value of human capital. It needs to assess its employees, and it has to compare its assets with the ideal profile of employees (more on Strategic Planning). The proper assessment of jobs, skills, and competencies is the first step to building a better business. It has to go through many fit-gap analyzes to ensure that all plans and initiatives are aligned with the primary goal of the strategic Human Resources (more on HR Goals and Objectives).
The Strategic HR Planning brings many benefits for employees and managers. Human Resources becomes predictable, and all proposals come with arguments, information, and relevant data. The Strategic HR Planning makes a significant difference between the old, traditional Human Resources function and the new, modern, result oriented HRM Department. SHRM combines internal priorities of Human Resources with the requirements and needs of the business. It also considers the ability of employees to accept the change; it demands HR Managers to design a proper communication and change implementation plan. It allows to HR Professionals balance the development of human capital in the organization while focusing on critical business targets.
Human Resources needs to coordinate its plans with other functions, and it has to be approved by the leadership team. It makes the HR Planning that is fully aligned with overall business targets and objectives. It makes them accurate and achievable. HR employees can use real life examples during discussions, and they can demonstrate the positive impact of HR initiatives in the business of the company.
It also creates a solid basis for the development of the HR Strategy (more on HR Strategies) and the redesign of core HR Processes (more on HR Processes). Regarding the strategy of Human Resources; it collects many inputs during all planning sessions that can be used as an input to strategic thinking in the HR Department.
The streamlined HR Processes make the HR Department agile and efficient. It is a great SHRM benefit. Employees and managers have the opportunity to deliver right inputs to all HR processes and procedures, and they can be sure of the output. It increases the satisfaction of managers with provided HR processes.
Moreover, Human Resources can outsource processes that do not add value in the new world. The HR priorities are dramatically shifted, and HR Managers have to spend time with internal clients. They have to focus on the delivery of strategic goals and targets; the outsourcing of HR administrative processes is the first step in designing a high-performance HR Organization.
The other benefit of Strategic HR Management is a consistent management of functions and skills in the organization. SHRM introduces strategic workforce planning which is always a painful change for line managers. The planning system changes significantly, and headcount allocation does not take history into account. The promising and critical areas receive higher headcount than they received in the old headcount planning procedures. It is a change when Human Resources has to defend its proposal.
SHRM helps Human Resources build a unique HR story. The storytelling engages employees because they can visualize the journey and vision of the company. They can imagine the result. It also strengthens the development of HR Professionals because they can show positive examples of the change in their discussions with managers and employees.
Employees do not understand to graphs and Excel tables. They do understand to stories. They want to see and hear the success story of Human Resources. The story describes the point A, where the company stands, and the point B where the company is going. It is not like the good story as it would be as a result of the HR Strategy, but it can explain to employees the journey of HRM in the company.
The strategic thinking (more on Strategic Thinking) is one of the best benefits of SHRM. HR Managers have to think about their daily issues in the context of the business development. Many important issues can be recognized as not-so-important issues and vice-versa. Their voice in the team becomes stronger than it was previously, and managers begin to listen to their pieces of advice. HR Managers start to grow as the business grows.
The introduction of the Strategic Human Resources Management creates a huge pressure on HR employees. They have to learn new skills, and they need to develop their facilitation, negotiation, project management and leadership skills. It is an excellent HR Development program, and it is delivered for free. They are asked to think about the strategic agenda of the organization. They have to recognize what is important for the company and what influences the business results most.
The Strategic HR Management is an excellent development opportunity for HR Professionals. They become a natural part of cross-functional teams. They need to advance their skills in the financial management and the business acumen. HR has to hire new employees from the job market who enrich the current team.
SHRM introduction is a great moment for Human Resources; the HR Talent Development Programs starts to make sense. The HR Director stops solving daily issues and focuses on the development of the team. The strategic skills become important and valued by other managers in the firm.
The Strategic HR Management is a fundamental change in Human Resources Organization. The HR Professionals have to change their behavior; they need to learn new skills and competencies. The result driven culture becomes a standard, and the increased pressure creates a space for new talents coming to Human Resources. The SHRM introduction has many benefits for the organization, HR Function, and employees in HR.