Human resource strategy is the general blueprint that guides the execution of certain human resource tasks. A human resource strategy guides the HR department on personnel based decisions so that they are in line with the company’s aspirations.

It involves the HR department not only accomplishing its tasks but accomplishing those tasks in line with the company’s goals and direction. The correct HR strategy equips employees with the right attitude and tools so that they too can align themselves with the company’s direction. Through HR strategy, all human resource functional areas are brought to match the overall business strategy.

Major areas encompassed by HR strategy

There are several areas that are vital for sound HR strategy but it is possible to break it down into four:

  1. Organizational hierarchy strategy – it can be hard to explain to an ordinary worker without any title how a top executive in the company influences the success of the company yet he doesn’t even do any of the manufacturing or processing. The truth, however, is that top company executives play a big role in a company’s success or failure through the strategies they make and decisions they take. As part of the HR strategy, the HR needs to take an active and leadership role in making those vital decisions and participating in strategy recommendation
  2. Talent/people strategy – humans represent the most vital resource in most organization and it is vital to ensure that any worker-related strategy is in line with the overall strategy. The HR is in charge of ensuring that the workforce is satisfactory and can deliver what the overall strategy requires. The process of ensuring that there is adequate manpower involves ensuring that the staff possess the required qualification, skills and experience as well as predicting future labor demands and putting down plans to satisfy them. This means recruitment of the right talent and retaining of the same as well as continues employee training and development.
  3. Performance strategies – managers influence their subordinated in the significance of methods that influence success in a company. HR strategies should be aligned such that they support these measures by managers so that the organization can gain a culture of high performance. This can be helped by implementing a strategy for recognizing and rewarding performing employees.
  4. Human Resource System strategy – HR system strategy is usually given credit for strategic planning, which in turn is complemented for bringing success with employees and consequently customers.