Is HR management a strategic partner in your company or does it remain more of a support function? In many organisations, HRM is seen as an administrative role, but in reality it is an integral part of the business strategy.
“If HR managers can demonstrate how a flexible workforce can reduce costs and increase operational efficiency, they can become the most important strategic partner in an organisation,” stressed Kristjan Vanaselja.
Here are three practical ways to synchronise HR management and business strategy.
1. Data-driven HRM supports better decisions
Many managers interpret HR statistics as just numbers, but data-driven HR management allows for more accurate decisions that support business growth.
“Human resource management cannot be just a response to orders from the business side. By engaging in data-driven planning, HR managers can deliver solutions that support both business objectives and people development,” said Katri Jürine, HR Manager at Thermory and Chair of the PARE Board.
The HR manager and the business manager could regularly analyse together the following indicators and their impact on the company’s performance as baseline data:
- employee turnover and its impact on productivity
- trends in sick days and absences and their causes
- efficiency and availability of temporary labour
- Employee satisfaction and its relationship with company performance.
- process bottlenecks affecting work organisation and production efficiency.
What to do with this data?
- Identifying problematic patterns: if the data shows that there is a high turnover of staff in a particular department, the reasons for this need to be analysed – is it a problem with workload, management or working conditions?
- Optimising work processes: if 1/3 of the team goes to installation work on certain days and there is a shortage of manpower in production during this time, it is worth reviewing whether the work organisation allows for a more efficient use of available resources. Could the installation work be spread more evenly, or could temporary staff be used in the meantime?
- Skills mapping and refresher training: if analysis shows that critical tasks are stalled due to the absence of certain key people, cross-training – teaching several staff members additional skills so that work does not stop with the absence of one group – can be a solution.
- Flexible workforce solutions: if there is a need for a larger team in certain periods, flexible workforce solutions such as seasonal or project-based workforce can be considered.
If data analysis shows that productivity suffers because of an illogical division of labour, it is important to make this part of workplace design. This means not only managing people, but also optimising processes so that they are aligned with business objectives.
2. The HR Manager and the Area Manager must work in tandem.
If the line manager and the HR manager only work together operationally, the HR manager often remains passive. In fact, the HR manager should be an equal partner, able to provide input to business management challenges.
“Often the HR manager is seen as someone who simply implements the decisions of the business leaders. In fact, HR managers should help managers understand how workforce strategies can help solve business problems,” explains Kaidi Kask, a long-time senior executive in retail (formerly Sportland, LPP Estonia and Jysk).
💡 Read more: Human resource management and business management – how to make them work together.
For example, in a manufacturing company where operational efficiency depends on the competences of the workforce, the production manager and the HR manager can:
- participate together in regular production meetings to map critical skills gaps.
- Create flexible solutions, e.g. cross-training, to allow staff to fulfil multiple roles as needed.
- Together, review the work organisation and adapt it to production volumes.
If the HR manager thinks about how to maximise the use of the workforce to serve the business strategy, the production manager can make better decisions that reduce risks and increase productivity.
3. Workplace design must support business objectives
Synchronising HR management and business strategy is not just about hiring and training the right people – it also includes designing the workplace that enables a company to grow sustainably.
In organisations where work organisation changes according to demand, HR managers can regularly participate and contribute to:
- quarterly analysis to assess growth and labour needs.
- Mapping work processes to identify inefficient steps and opportunities for automation.
- Flexible workforce planning to ensure a rapid response to challenges.
Workplace design is not just about optimising the way work is done, it is also a strategic approach that allows HR and business leaders to work hand in hand to achieve consistently better results.
💡 Read more: Flexible workforce: why is it essential for businesses?
Summary
Working in strategic tandem, the HR manager and the business manager together can solve business problems and increase competitiveness. The key is:
- Use data-driven decision making to ensure that HR management supports business strategy.
- Involve the HR Manager in strategic discussions with line managers.
- Link human resource management to workplace design to support long-term growth.
The article was written on the basis of a webinar organised by GoWorkaBit, where Katri Jürine (HR Manager at Thermory, PARE Board Chair), Kaidi Kask (former CEO of Sportland, LPP Estonia, Jysk) and Kristjan Vanaselja (founder of GoWorkaBit, PARE Board Member) participated in the panel discussion. Watch the full conversation on YouTube: https://youtu.be/WZ6eWhgDGK4