At every company, employees are your most valuable asset. They are the foundation of the enterprise and the wheels that make everything run. Strategic human resource planning is not just a buzzword, it's a necessity for business growth and long-term sustainability.
Starting each year with a comprehensive “people plan” ensures that companies properly prioritize this crucial component of success so that they have the right people and skills necessary to crush the coming year. Let’s look at how to develop an HR strategy that integrates with the business strategy and sets up 2024 to be a success.
5 Reasons to Develop an HR Plan
An HR plan is a strategic roadmap designed to align human resources management with the overall business objectives. It encompasses recruitment, training and development, compensation, benefits and employee retention strategies. An effective HR plan will:
Align Talent with Business Goals: Put the right people with the right skills in the right positions. Ensure cultural fit with the company.
Improve Employee Engagement and Retention: Create a work environment that not only attracts top talent but also keeps them engaged and committed.
Enhance Organizational Efficiency: Streamline processes, reduce redundancies and improve overall efficiency.
Prepare for Future Challenges: Adapt to technological advancements, changing market demands or demographic shifts in the workforce to stay one step ahead.
Aid Financial Management and Budgeting: Align your HR budget with the business needs to utilize resources effectively and maximize return on investment in human capital.
The 4 Steps of HR Planning
1. Start with the Budget
A well-structured HR budget is the roadmap to aligning financial resources with human resource needs. Unfortunately, the HR team is often at the mercy of the budget they are given and need to prioritize from this baseline.
Instead, start by reviewing the overall business objectives for 2024 and understand how the HR organization can support these goals. If you need to expand critical roles on the team or enhance employee training programs to deliver on business objectives post M&A, the budget is the foundation on which these plans are built. Partner the Finance and HR leaders to collaborate on this crucial aspect of business planning.
2. Review Open Positions and Prioritize Hiring
Growth and sales targets are common focal points for any business or firm, and a hiring strategy should directly support these goals. Take a close look at the current team structure to identify the gaps. Which roles are critical for achieving your 2024 business objectives? What might you need to add?
Prioritize these key positions for business growth to streamline the hiring process accordingly. Filling the right positions ensures that every new hire contributes significantly to the bottom line.
3. Address HR Topics to Assess Internal Capabilities
Attracting and retaining the talent needed for success depends on how well they are treated. This is where HR management takes a deep dive and makes hard decisions. How competitive are the benefits packages? Are salaries in line with industry standards? The work culture is vital to attract and retain top talent. Compensation benchmarking and total reward statements are two tools to address these important considerations.
To build a workforce that's not just skilled, but also aligned with business objectives, invest in:
Effective recruitment strategies
Employee training and development
Robust performance management systems
Success in the HR realm means hiring the right people, equipping them with the necessary tools to perform their best and tracking their progress. Make sure your 2024 plan outlines strategies in each of these three areas.
4. Circle Back to Your Budget
Balancing your HR needs with the available budget can be challenging. This is where strategic planning comes into play. Seek new, innovative approaches to optimize the HR budget. Consider investing more in employee development to reduce turnover costs or re-evaluating vendor contracts for those who provide recruitment and training services. The goal is to make every dollar count without compromising on the quality of the workforce.
How Growth Operators Elevates HR Planning
You don’t have to go it alone when drafting your 2024 business plan. The Growth Operators team specializes in providing businesses and firms with the HR planning and guidance they need to create a solid foundation for the coming year. Here are four ways we can elevate your people plan:
Interim Management Solutions
Planning phases are the perfect time to leverage fractional experts. Engage a short-term CHRO, VP of HR, HR director or HR generalist to ensure that your team goes into the new year as a cohesive unit. An outside expert sees the big picture without missing the small details. Our Growth Pros lead through cultivated experience and offer fresh vision you won’t find internally.
Strategic HR Advisory Services
Outside advisory services identify key areas for growth and give you workable solutions for resolving your HR challenges. This includes:
M&A integration planning and management
HR policy design and compliance
Compensation and benefits
Total Rewards Statements (TRS)
HR strategy and implementation’
Conflict Resolution and Culture Building
Going into the new year with unresolved conflicts hurts morale and efficiency. The HR professionals at Growth Operators know how to navigate all manner of conflict. From unhappy employees to clashes that come with mergers and acquisitions, we’ve seen it all. Let us help build a top notch workplace culture where everyone feels included and appreciated.
People Plan Creation
Employee plans are the HR blueprint for the year. Start off right with expert guidance and a plan that strategically aligns your HR organization with your business objectives.
Draft Your HR Strategic Plan for 2024
Whether it's bridging a leadership gap or designing a comprehensive HR strategy, we dig in to ensure that your business thrives in 2024 and beyond. To learn more about how to obtain personalized assistance with your HR strategy, contact the Growth Pros today. Let’s work together to make 2024 a landmark year for your business!