How a good people strategy will impact your business results?
Technology is changing the world. From drones to self-driving cars, to almost anything else you can think of.
And that includes the way we work.
While tech brings all kinds of great new innovations to the workplace, it also presents several challenges for employers. More employees are opting for the freelance or professional consulting life, choosing to divide their time between a few different projects at once. But even those who do choose to devote 100 percent of their time to one company don’t stay for long — many look for something new every year.
Not to mention, while communication tools allow for unprecedented flexibility, they also allow for teams that are scattered across the globe. So while these teams have the technical tools to talk to one another, the timing can be troublesome.
That’s why HR is becoming all the more important within an organization. Though it can be tough to measure directly, HR has a critical impact on a company’s bottom line.
So, how does it work, exactly?
Because HR has a direct impact on hiring, retaining, and engaging employees, your team is responsible for managing employee expectations throughout their time at the company. Thus, a great people strategy is always at the core of a good business strategy. After all, the people are the business, and they need to execute in order for the business strategy to succeed.
The best companies have realized that to keep growing in a competitive business environment, their employees must be their top priority and their people strategy must involve the organization’s entire management team. HR works hand in hand with the management team to create and execute a solid strategy, setting the appropriate metrics and monitoring them to ensure that everything goes according to plan.
So it only makes sense that when setting business goals for the coming year, HR should be closely and directly involved in ensuring that goals are met and that the company has all the tools and resources needed to meet them. And meeting those goals all centers around — you guessed it — a good people strategy.
Whenever a business fails to meet its goals, leaders need to take a hard look at their strategy and apply all necessary changes. Though it may sound harsh, the same applies to people strategy. For instance, if a company is on a rapid growth track, HR and the leadership team must ask themselves: do we have the right salespeople to support this type of growth? Is our current management team capable of scaling the business? Your people strategy should take your company’s growth phase into account, as well as the people who lead and operate it.
What makes a good people strategy?
A good people strategy will relate to various parameters including recruitment, retention plan, talent programs (i.e. nurturing the company’s next generation of managers), transparency, and communication mechanisms.
As a bonus, a people-centered business strategy will also help HR hit all their KPIs. Better yet, you won’t achieve high attrition and employee retention simply for the sake of keeping the numbers up — you’ll achieve high attrition and employee retention because your solid people strategy draws employees who want to work for your company and want to keep working for your company.
How exactly does this all play out? In recruitment, it’s important to understand the expectations for the upcoming year’s growth. Then, you’ll need to translate that growth into positions.
So, say that the company aims to bring in another $1 million in sales. You’ll have to think: do we have enough salespeople to achieve that? If not, when should we hire more? How will this growth impact other departments, such as customer success and customer support?
Forecast your company’s growth to ensure that you have the budget for necessary positions. Then, start recruiting several months before you need to hire.
In today’s business world, it’s hard to hire great employees and even hard to keep them. Losing out on a good candidate can cost you, both in terms of time and money. That’s why creating and applying a strong people strategy is a necessary component to staying competitive.