Strategic human resource management is key to improving your business performance.
Strategic human resource management (SHRM) is when strategic objectives and goals are combined with human resources. The goal of this combination is to improve the performance of the business or organization. It can also help develop a strong culture within the organization. This can encourage the members of the organization to become more flexible and innovative and also give them an advantage above the competition outside the business. SHRM is one of the most effective HR solutions for business owners.
When an organization embraces strategic human resource management, the organization will consider the HR team a vital part of the organization. This can involve implementing the company’s strategies. This is accomplished with HR functions such as selecting, recruiting, and training staff, as well as rewarding high-functioning employees.
Concurrent HRO works to provide the best strategic HR solutions in the Colorado areas. Contact us today to schedule a free consultation with us and see how strategic human resource management can benefit your company.
Traditional Vs. Strategic Human Resource Management
To understand the difference between traditional and strategic human resource management, it is beneficial to understand traditional human resource management first.
Traditional human resource management is focused on obtaining the best employees. Traditional HR department provides employees with benefits, training, and development so that they can be successful in the organization. This HR department also focuses on making these employees as efficient as possible.
On the other hand, strategic human resource management does all the above tasks but also works to help employees achieve other goals. For example, an SHRM department will study the goals of the organization as a whole, as well as other departments in the organization.
The strategic human resource management department will work to ensure that the training and development of employees equip them to meet these goals. Human resource departments that focus on strategic human resources will also ensure that their own department’s goals are aligned with the entire organization’s values and goals. Understanding the difference between traditional and strategic human resource management can help you understand this type of HR.
For better understanding, we prepared a table with the key differences between traditional and strategic human resource management
|Traditional Human Resource Management||Strategic Human Resource Management|
|Focus||Operational planning||Strategic planning that aligns with the organization’s business objectives|
|Approach||Reactive and fragmented||Proactive and integrated|
|Scope||Delivers basic personnel training, maintains employee relations||Develops far-sighted staffing plans, identifies external opportunities|
|Time Horizon||Short-term planning||Short, mid, and long-term planning|
|Responsibility||Staff specialists||Line management|
|Characteristics||Specialized, bureaucratic||Flexible, adaptive, few restrictions|
Goals Of Strategic Human Resource Management
Strategic human resource management has several goals and tasks. These goals are common, no matter what industry the company is in.
- Developing and training employees
- Evaluating the performance of the employees
- Helping companies expand, enter new markets, and grow
- Encouraging employees to achieve the goals of the company
- Providing incentives, coaching, mentoring, and recognition for employees
- Rewarding employees that continuously add value to the company and surpass performance standards
- Allowing each employee to manage their own account
Understanding the goals of strategic human resource management can help individuals understand more about how this important department works.
The Importance Of Strategic Human Resource Management
The importance of strategic human resource management is important for companies to understand. Compared to traditional human resource management, strategic human resource management helps every department in the company work toward the same goals and objectives. This helps the organization as a whole become more successful.
So, why is strategic human resource management important? By analyzing the employees, the SHRM can determine how to best improve the employees so their value can be increased and also analyze the employees to determine what their weaknesses are. This allows the SHRM department to address the weaknesses and either help the employees improve or replace them. The importance of strategic human resource management cannot be overemphasized.
Benefits Of Strategic Human Resource Management
Besides improving efficiency, there are many other benefits of strategic human resource management:
- It can help employees become more competitive.
- It helps the company solidify its goals for the future, as well as develop a business strategy.
- It will help retain employees.
- It guides the HR department to gather information that can be beneficial to the company’s planning process.
- It helps the strategic human resource management department better recruit new employees.
- It aids the strategic human resource management department to determine what threats may impact or change the company.
- It ensures that the company will be productive and efficient.
- It helps the company determine its strengths and weaknesses.
- It ensures that customers will be satisfied with the company.
- It addresses issues with the development of employees.
There are many other benefits of strategic human resource management, making this an ideal process for any organization to adapt, no matter what their size or industry is.
Successful Implementation Of Strategic Human Resource Management – Concurrent HRO Can Help
The economy is becoming more competitive and volatile. Demographics are constantly shifting while differences between the cultures are increasing. As the workforce becomes more demanding, the implementation of strategic human resource management is becoming more valuable. Companies that implement strategic human resource management can ensure that they will thrive and be successful for a long time to come.
If you want your company to grow and improve, Concurrent HRO offers several tools that can help give you more time to the implementation of strategic human resource management. Contact Concurrent HRO in the greater Denver area today. Outsourcing HR can help your business grow and expand. See how Concurrent HRO can help you schedule your employees so that you can better work on strategic human resource management for your company.