What Role Does Human Resources Play in Business Strategy

Historically, human resources has focused on hiring, payroll and benefits, and solving internal issues within a company. As a non-revenue, service driven department, HR has had little to do with the development and implementation of an organization’s strategic plan. However, today’s business leaders are beginning to see the importance of a knowledgeable and well-trained HR department. The focus is shifting to more long-term goals that assist a company’s strategic plan, leading to better performance and achievement of business objectives.

An organization’s success can often rely heavily on a cooperative relationship between employees and management. A successful HR department can assist in cultivating this relationship, while fostering an environment where employees can focus on both the company’s goals and their own advancement and growth. Ultimately, supporting talent strategy within an organization can help to nurture innovation and accelerate results.

Human resources has the ability to drive results in an organization by engaging and empowering employees. Today, more HR departments are beginning to align with marketing and business development departments and assisting management in strategy development. This starts with an HR department’s ability to understand an organization’s needs in order to better attract talent.

Employment relationships have changed dramatically from the typical full-time and part-time employee model. More companies are hiring freelancers, contract positions, and telecommuting roles. As marketers, HR can find new ways to build an internal brand that creates a culture conducive to attracting candidates that meet the company’s needs, while also engaging employees for better retention. A business strategy that integrates HR practices focuses on talent and organizational development, training and development, and useful metrics to assist company leaders. Successful HR departments may try to collaborate with management in order to find the best solutions to empower employees, while achieving a company’s strategic goals.

While it may appear to be a challenge, companies can find ways to bring their HR department to the forefront of their business strategy. If HR doesn’t already report to a CEO or company leader, it can be beneficial to do so. The restructuring could provide executives with easy access to valuable information and advice from their HR department. This can give executives insight to what is going on internally and permit them to be more proactive about management decisions.

It may be wise for organizations to make human resources a top priority, versus only utilizing them when problems arise. This can allow for a better relationship between management and HR, and a more successful strategic business plan.


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