What is a 'strategic' approach to HR management?

'A business without a strategic HR function is akin to a boat without a rudder,' says white paper

BY Dexter Tilo 28 Aug 2024

The uncertainty introduced by the pandemic has underscored the need for a strategic approach to HR management in organisations, according to a white paper.

Strategic HR, as defined by Humanforce, refers to the way of managing human capital and aligning it with business activities.

"It sets the direction for all areas within HR's mandate, from talent acquisition through to employee engagement, retention, and development," Humanforce said in a white paper.

According to the paper, a strategic HR plan has the following characteristics:

Based on in-depth analysis of the organisation and the external environment. An analysis of strengths, weaknesses, opportunities, and threats can be useful to understand where the business currently sits and where it might head in the future
Take more than one year to implement and execute. However, it's not "set and forget," course connections should be done as circumstances and priorities change
Shape the character and direction of HR management activities, including the key roles (and skillsets) that will be required to execute the HR strategy
Help in the allocation and deployment of organisational resources
Be numbers- and data-driven

Why HR needs to be strategic

Humanforce, citing various research, said having a strategic HR plan can lead to "superior business performance," regardless of industry.

The need for one comes as HR leaders function in a "new, unpredictable era" brought about by the pandemic, which changes executives' and employees' priorities in the workplace.

Without a strategic approach to HR, Humanforce warned that organisations might be planning to fail.

"A business without a strategic HR function is akin to a boat without a rudder," it said.

Learn more strategic HR and how to convert strategies to concrete plans in this white paper.