For businesses to thrive in today’s competitive environment, their people strategy must align with their business objectives. That is where a HR strategy comes in, but what exactly is it and how can your business develop one that drives growth and success?
In this article, B P Collins’ HR2Help team explores the concept of HR strategy, its importance, and practical steps to create a robust HR strategy tailored to your business needs.
What is an HR strategy?
An HR strategy is a long-term plan that aligns your workforce management practices with your Company’s goals and vision. It ensures that your people are engaged, skilled, and positioned to contribute to the success of your business.
A strong HR strategy addresses key areas, such as:
• Recruitment and retention
• Employee engagement
• Performance management
• Learning and development
• Diversity, equity, and inclusion (DEI)
• Compliance with employment laws
• Workforce planning
In essence, your HR strategy acts as a blueprint to attract, develop, and retain talent while ensuring legal compliance and fostering a positive workplace culture.
Why does your business need an HR Strategy?
An effective HR strategy offers numerous benefits:
• Aligns HR with business goals:
Ensures your people strategy supports overall Company objectives, such as growth, innovation, or market expansion.
• Enhances employee performance:
A strategic approach to training, engagement, and performance management boosts productivity and morale.
• Reduces turnover costs:
By addressing employee satisfaction and career development, you can minimise costly turnover and recruitment expenses.
• Improves legal compliance:
Staying updated on UK employment laws reduces the risk of fines, tribunal claims, and reputational damage.
• Builds a positive employer brand:
A strategic focus on employee experience enhances your reputation as an employer of choice, attracting top talent.
How to develop an HR strategy
Creating an HR strategy involves several key steps. Here is a practical guide to get started:
1. Understand your business goals
• Begin by identifying your Company’s mission, vision, and strategic objectives.
• Determine how HR can contribute to achieving these goals. For instance, if your business aims to expand into new markets, your HR strategy may focus on workforce planning and leadership development.
2. Conduct a workforce analysis
• Assess your current workforce’s skills, demographics, and performance levels.
• Identify gaps or challenges, such as skills shortages, high turnover rates, or low engagement scores.
3. Define your HR objectives
Set clear and measurable HR goals that align with your business strategy. Examples include:
• Reducing turnover by 10% within 12 months.
• Increasing employee engagement scores by 20%.
• Building a leadership pipeline for future succession planning.
4. Develop key initiatives
Based on your objectives, outline specific actions and programs. For example:
• Recruitment: Implement employer branding initiatives and streamline hiring processes.
• Employee Engagement: Introduce recognition programs and gather regular feedback through surveys.
• Learning and Development: Launch training programs tailored to skill gaps and future business needs.
5. Ensure compliance
• Stay up to date on current UK employment laws, such as GDPR, the Equality Act 2010 and future developments such as the Employments Rights Act 2025.
• Conduct regular audits to ensure compliance and mitigate legal risks.
6. Monitor and measure success
Establish metrics to evaluate the impact of your HR strategy. Common KPIs include:
• Employee turnover rates
• Time-to-hire
• Training completion rates
• Employee engagement scores
• Review these metrics regularly and adjust your strategy as needed.
7. Involve stakeholders
• Collaborate with leadership, managers, and employees to ensure buy-in and alignment.
• Communicate the strategy clearly, highlighting its benefits for individuals and the Company.
Common challenges and how to overcome them:
Lack of leadership support:
Solution: Present a clear business case for your HR strategy, emphasising its impact on company goals.
Insufficient resources:
Solution: Prioritise initiatives with the greatest ROI and explore external support, such as partnering with an HR consultancy.
Resistance to change:
Solution: Foster a culture of transparency and involve employees in the development process to build trust and acceptance.
Why partner with an HR consultancy?
Developing and implementing an HR strategy can be complex, especially for growing businesses. Partnering with an HR consultancy provides access to expertise, tools, and tailored solutions that ensure your strategy is effective and compliant.
At HR2HELP, we specialise in helping UK businesses create HR strategies that drive success. From workforce planning to engagement programs, we’re here to support you every step of the way.
Contact us today by emailing enquiries@bpcollins.co.uk or call 01753 889995.
