What is strategic HR?

Strategic Human resource is a way of acting in people management that is based on the analysis of data about employees and helps in making decisions that are more in line with the business objectives.

Furthermore, it is a practice that requires the area to participate in the company’s strategic decisions and that it has access and freedom to use modern technology and methodologies to generate value for the organization.

A strategic HR goes beyond the bureaucratic issues and reactive actions of a common HR and provides benefits not only for employees, but also for the company as a whole.

What are the elements of strategic HR?

For an HR to be considered strategic, it is essential that it presents some elements, such as those listed below.

1-Strategic business vision

The first point that is observed in strategic HR is that it has a much broader and, at the same time, intimate view of the business . The people management area needs to have representation on the company’s board, and it must also be aware of everything that is decided regarding the next steps.

In this sense, the ideal is for HR to participate in the preparation of business strategies in all areas, whether in the short, medium or long term. Your involvement is essential for a more accurate targeting of hiring, firing and talent development , so that the organization is aligned.

2-Use of data analysis

Strategic HR is a way of managing people that is based on data for decision making. As in other sectors, HR collects information about employees, for example, their behavioral profiles , the results obtained and the degree of seniority, using this strategically for the business.

In fact, this is one of the main characteristics that make it different from a traditional HR. Data analysis allows many impressions and “guessing” to be quantified and, thus, justified to senior management. Here, we are talking about statistics and mathematical calculations capable of making decisions about people .

3-Technology as main ally

Technology is the means that allows HR to be strategic . Today, all the data collection and analysis part of professionals would be totally unfeasible to be done by hand. In addition to being a very large workload, it is a factor that prevents scalability as the company grows and evolves.

The Profiler , here the solides, for example, is a complete software, which helps the HR sector since the process of recruitment and selection to the performance analysis of the teams, going through several possibilities. Tools like this allow people management to be more emphatic and beneficial to the business.

4-Proactivity and transformation

Another striking feature of strategic HR is its proactiveness and capacity to transform talent. People management already knows what paths the company has decided to take , so it can act in advance. This involves definitions in all industry processes, which must maintain alignment with the larger objectives established for the business.

What is the role of strategic HR in a company?

Strategic HR plays a different role from the traditional one in a company. See what are the most relevant points of this, below.

1-Prepare the ground for the execution of the company’s strategy

Traditional HR handles it reactively, that is, it waits for the demands to come ready-made from the board before it starts to act. Strategic HR, on the other hand, participates in the elaboration of strategies and manages to foresee what should be done in relation to people management .

In this way, he works to prepare the company and the organizational environment for what is to come, adjusting hiring, aligning training needs, organizing the management of positions and salaries, among other measures.

2-Keeping the talent base engaged and developed

The strategic management of people must ensure that the company’s best talents remain engaged and productive. This is done with the help of retention actions, which involve adapting the benefits offered, granting promotions and developing professionals through courses and training . At that time, each action is minimally planned to benefit everyone involved.

3-Propose solutions in strategic people management

Another important HR responsibility is to propose solutions that help people management to be increasingly strategic. In this sense, actions should not be limited to the HR sector , each leader can, and should, adopt measures that are based on statistical data and that are fully in line with the business objectives.

What are the mistakes HR must avoid to remain strategic?

So far, we’ve approached what strategic HR is from different perspectives. Now, let’s talk about some mistakes that end up disfiguring this type of approach in people management and that undermine all the potential that can be achieved with the correct application of practices.

1-Don’t base decisions on data

There is no strategic HR without the use of data . In fact, there is nothing in strategies that is not based on analysis of scenarios, information and statistics. It is precisely these elements that make the scenario more intelligent, that allow learning from the mistakes and successes made to build more precise and productive actions in the present and future.

2-Treat all professionals as equal

Each person is unique and needs to have their particularities identified and respected. Therefore, the behavioral profile analysis is an essential tool for the strategic management of people, as it allows subjective information to be transformed into concrete and measurable data . Considering this differentiation in team management is a key factor to ensure more productivity and engagement of professionals.

3-Do not act predictively

It’s no use having all this information at hand if it’s not used predictively. This is the great “cat leap” of strategic HR: act in advance , providing a more favorable environment for the development of plans outlined for the business. It’s like watching the weather close in with dark clouds and not taking off your clothes on the clothesline before the rain falls.

4-Not positioning yourself as a strategic ally of the business

HR cannot be strategic in name alone, it really needs to be strategic. This requires that he assert himself as a prominent sector in the company, that he is directly linked to the board of directors and that he actively participates in the definitions that are most important to the business.

Still, he cannot be just another sector, much less remain subordinate to other managements. So, it is essential that it is at the top of the hierarchy so that its effects are applied throughout the organization.

What are the benefits of having a more strategic HR in the organization?

Strategic HR provides several advantages for both the company and its employees. Here, we brought some that stand out, follow!

1-More efficient attraction and selection of professionals

Participating in decision making at higher levels of the organizational hierarchy has its advantages. Among them, providing HR with sufficient subsidies to define the most suitable profiles for recruiting and selecting talent . Knowing what the company needs, it is much easier to determine what must be found in the market so that the strategic planning can be fulfilled with greater precision.

2-Reduction in turnover and absenteeism rates

The most efficient hiring, by itself, is enough to considerably reduce some negative indices, such as turnover and absenteeism. But strategic HR goes further and implements more effective retention actions , which keep professionals engaged and committed to the company and to the challenges that are proposed to them.

3-Increased productivity and business innovation

As a result of all these efforts, high productivity becomes part of the organization’s routine . Happy and engaged employees, with well-established goals, in accordance with the company’s general objectives, and the sum of all this generates innovation and growth for the business.

Finally, we can conclude what strategic HR is, that is, a set of actions in people management that uses data analysis and technology to make decisions. In this context, he acts preventively, anticipating the company’s needs and increasing the value of talent in the strategic planning of the business.