HR strategy: why and how can you implement it in your company?
Establishing an effective HR strategy is essential for any company wishing to achieve its objectives, particularly its commercial objectives. It requires a clear understanding of an organisation's culture, people and processes.
Deploying this strategy involves a multitude of aspects, from managing human capital to adapting to today's digital challenges.
This article, co-written with human resources consultant Laure Guérin-Taquet, looks at the definition of HR strategy, how to define it in 5 steps, and our top tips for a good HR strategy that will even serve your employer brand!
Understanding HR strategy: definition, challenges and examples
What is an HR strategy?
An HR strategy is a long-term plan developed by a company to manage its human resources effectively. It aims to align the objectives of the HR function with those of the company.
The key elements of an HR strategy include :
- Understanding current resources: this phase involves analysing the skills, talents and aspirations of existing employees.
- Defining strategic objectives: this may include attracting and retaining talent, improving employee productivity, or promoting internal mobility.
- Creating a detailed report: this document describes the current situation of the HR function, the strategic objectives and the measures to be put in place to achieve them.
- Communicating the strategy to all employees: it is essential to explain clearly to employees how the HR strategy affects them directly and how it will contribute to achieving the company's objectives.
- Continuous adjustment and optimisation of the strategy: an effective HR strategy evolves in line with the changing needs of the business and the labour market.
The 3 challenges of human resources strategy
The challenges of a global human resources strategy are many and varied. They are linked to the company's internal and external challenges.
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One of the first challenges is talent management. It is crucial to recruit and retain the best people to ensure the company's growth.
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Another major challenge is adapting to technological and societal change. Digitalisation and new forms of working, such as teleworking and hybrid working, require strategic thinking to optimise the employee experience.
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Finally, the HR strategy must also take into account the challenges associated with training and developing employee skills, as well as the corporate culture.
A word from the expert
Establishing an HR strategy is essential for aligning human resources management objectives with those of the business. This helps to maximise productivity, improve talent management and adapt to the challenges of the labour market, such as digitalisation and new forms of working (teleworking, hybrid).
An effective HR strategy is based on an initial skills audit, the definition of clear objectives (such as retaining talent or improving performance) and a structured action plan to achieve these objectives.
It includes key aspects such as recruitment, continuous training and HR communication management, which are essential for strengthening employee commitment and fostering a dynamic working environment. The integration of digital tools (HRIS, ATS, GPEC) supports the automation and optimisation of HR processes, while the involvement of managers in the strategy is crucial to ensuring its operational success.
Finally, evaluating the strategy using KPIs enables us to measure its effectiveness and adjust it according to the results obtained.
The implementation of an HR strategy can take many forms, depending on the specific characteristics of each company. A distinction can be made between
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Global HR strategies, which aim to manage all the company's talent. 👉 For example, a company may choose to focus on external recruitment to attract new talent, or prioritise internal mobility and training to develop existing skills.
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Targeted HR strategies, which focus on a specific aspect of human resources management. 👉 For example, a company might develop a specific HR strategy for integrating new employees, or for managing employee performance.
There are many concrete examples that can illustrate these different approaches. For example, some leading companies have implemented effective HR strategies by ensuring alignment with the company's objectives, defining clear objectives for each employee or encouraging company differentiation to attract the best talent.
👀 Example of the Bouygues Group's HR strategy:
What is the difference between HR policy and HR strategy?
HR policy, unlike HR strategy, is the implementation of the long-term vision defined by the HR strategy. It brings together a set of concrete measures and actions designed to organise the management of human resources within a company. In a way, this HR policy is the operational expression of the HR strategy on a day-to-day basis.
It covers all areas relating to human resources, such as :
- recruitment and the hiring process
- training
- remuneration
- GPEC, etc.
Each of these actions is carried out with respect for the culture and values of the company and its environment, with the aim of meeting employees' expectations and supporting them in their development. In this way, HR policy is adapted to the realities on the ground and to the specific characteristics of each company.
How do you build an HR strategy? 5 key steps
For a company, developing an effective HR strategy is a complex process that requires an in-depth understanding of many internal and external factors.
Here's a detailed breakdown of each step to help you create a robust and tailored HR strategy!
Step 1: Take stock of the current HR situation
This first step is fundamental to laying the foundations for an effective HR strategy. It involves taking stock of the company's current human resources. This involves a detailed assessment of :
- skills ;
- performance ;
- employee satisfaction.
According to a Deloitte study, companies with advanced HR analysis programmes are 30% more likely to feel ready to meet future talent needs.
The HR audit should include an assessment and analysis of:
- current structures ;
- current policies ;
- current HR practices;
- skills gaps, and therefore training needs to ensure employee development, etc.
Step 2: Define the objectives of the HR strategy
Defining objectives is a key stage in designing an HR strategy. They must be aligned with the company's unified vision and overall objectives. They must be specific, measurable, achievable, relevant and time-defined (SMART).
💡 For example, if the company is aiming for 20% growth, HR could set a goal of improving employee productivity by 15% in one year through targeted training.
This step requires a thorough understanding of the company's long-term goals and how HR can contribute to them. It is also important to consider future challenges, such as changes in technology or the labour market, and to plan accordingly.
HR strategy objectives should also include initiatives to improve employee engagement and satisfaction, as these factors are directly linked to productivity and retention.
Step 3: Develop an action plan to achieve these objectives
To draw up an action plan and achieve the objectives of your HR strategy, you need to determine the specific actions to be implemented and prioritise them.
You also need to define everyone's responsibilities in implementing the plan. The HR team plays a major role in this process, but the success of the action plan requires the involvement of the whole organisation.
To monitor and evaluate your action plan, the use of HR dashboards and key performance indicators (KPIs ) can be very effective. These tools enable you to measure the effectiveness of your strategy and make adjustments if necessary.
Finally, don't forget to include elements such as the following in your action plan:
- Recruitment: define the job profiles to be filled and the preferred recruitment channels.
- Skills development: identify the training you need to develop your employees' skills.
- Communication: draw up a communication plan to inform your employees of the various stages in implementing your HR strategy.
Step 4: Integrate recruitment and training into your HR strategy
Recruitment and training are two crucial aspects of any HR strategy.
- Strategic recruitment means hiring not only for current needs, but also for the future skills required to grow and develop the business. This involves forward planning, taking into account market trends and changes in the skills required.
- Ongoing training, meanwhile, is essential to bridge skills gaps and prepare employees for future challenges.
A Gallup study revealed that companies that excel in employee development are 11% more productive.
It is therefore crucial to incorporate ongoing training programmes that not only meet immediate needs, but also prepare employees for future responsibilities and technologies to be mastered. 🔮
This includes initiatives such as leadership development, technical training, mentoring programmes and professional coaching.
Step 5: Manage HR communication well
HR communication is an essential pillar of HR strategy and plays a key role in employee engagement. It focuses on three main areas:
- Attracting: this involves promoting the company's image to potential candidates by communicating its values and corporate culture.
- Recruiting: communication must be effective during the recruitment process to attract talent that matches the company's needs.
- Retaining: it is crucial to maintain regular and transparent communication with employees to keep them engaged and motivated.
To manage HR communications effectively, it is important to establish a long-term communications strategy and an HR communications plan. The latter determines how the HR communication strategy will be deployed in practice. It includes a reminder of the company's HR communication objectives, values and organisation. It is also essential to precisely define the HR communication targets and tools.
Our advice for a good HR strategy
Rely on digital tools
Integrating digital tools into HR strategy has become essential for optimising processes and boosting organisational efficiency. These technologies offer automation of administrative tasks, in-depth data analysis for informed decisions and improved communication and employee engagement.
In short, they provide real day-to-day support for carrying out certain tedious tasks so that you can concentrate on what's important: the people who make up your organisation.
Which tools should you integrate into your overall HR strategy? Examples of applications:
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HRIS (Human Resources Management Information System): offers centralised management of various HR processes such as recruitment, performance management, HR planning, and payroll management. It also enables HR data to be analysed and structured. 🛠️ Example of high-performance HRIS software: Eurécia.
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ATS (Applicant Tracking Systems): this automates recruitment by multi-posting vacancies, managing applications, sorting CVs and organising interviews. It is also used for career management and talent development. 🛠️ Example of high-performance ATS software: softgarden.
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GPEC software: used to plan staffing requirements, monitor skills and careers, and set up training platforms.
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Payroll: automates and simplifies payroll management, including leave, absences and social security declarations, tailored to different company sizes.
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E-learning and training: it offers ongoing training opportunities through online modules, MOOCs and virtual classes, tailoring professional development to employees' specific needs.
These tools are not just task facilitators, but real strategic levers for modern, effective human resources management.
Taking management into account in overall HR management
Management is another essential lever in implementing an HR strategy. It provides the link between management and employees, relays the HR strategy at operational level and contributes to achieving the company's objectives.
Integrating management into overall HR management means in particular :
- involving managers in the definition of HR objectives to ensure greater buy-in and effective implementation ;
- involving managers in HR processes such as recruitment, training and assessing the performance of their teams;
- developing managerial skills, through specific training and support, to strengthen their role as the relay for HR strategy.
In short, effective management is a key success factor for a successful HR strategy. It optimises the company's productivity by improving the well-being and motivation of its employees.
And finally, how do you assess the effectiveness of your HR strategy?
To assess the effectiveness of your HR strategy, the use of HR KPIs (Key Performance Indicators) is essential. These indicators make it possible to measure the performance of actions taken and to guide future actions. Evaluating HR effectiveness means keeping a close eye on these KPIs.
KPIs can include social management indicators to measure the quality of life at work, but also more specific indicators linked to the management of the company's human capital.
These indicators include
- average recruitment time
- cost per hire
- candidate satisfaction
- remuneration and benefits.
It is also possible to carry out performance and skills assessments to measure the effectiveness of HR actions.