How to Align Human Resource & Business Strategies

To align HR with the business strategy, it is essential to determine what the strategy is and what type of employee is most suitable for that strategy.

Human Resources (HR) is essentially the "farm" system of the corporate world; that is, HR determines the next generation of employees within a company and, therefore, the hiring philosophy of HR is critically important if a business strategy is to come to full fruition. Aligning HR with a business strategy requires framing the exact business strategy in a mission statement, determining what types of employees are the most suitable for that business strategy, and then contacting HR (either by memo or meeting or both) to spread the word about what HR should be looking for.

Instructions

1. Create a mission statement that outlines the business strategy. The mission statement should be no longer than a few pages and effectively summarize the goals of the company (short-, medium-, and long-term) and the philosophy of the CEO and/or board of trustees (e.g. the values that guide the company such as doing social good first or making money first). This mission statement will be the template from which the concept model of the "ideal" employee set will be crafted.

2. Determine the type of employees that are most suitable for fulfilling the mission statement. For example, if your company is an investment bank working primarily in emerging markets, then you prioritize how important certain qualities of a candidate are in relation to that business interest (e.g. foreign language skills, experience abroad, a standard MBA degree, class rank and/or GPA (grade-point average, etc.). Create a full file explaining what HR ought to prioritize when hiring certain candidates (e.g. the ideal candidates for a research department, marketing department, etc.).

3. Distribute the company mission statement and "ideal candidate" sheet to HR. Send a memo throughout the office, email everyone, and/or hold a meeting to ensure that the message is clear throughout HR.

4. Consult with HR during the first set of initial hirings to check whether HR's choices are consistent with the business strategy. Thus, initially, you should take a hands-on approach with HR to ensure you and they are on the same page regarding what attributes a candidate suitable for the business strategy has. Let HR take full control of the hirings, with only the occasional review, once you feel their hirings are consistently in line with the business strategy.

References

• Center for Business Planning: Mission Statement
• "The Essential HR Handbook: A Quick and Handy Resource for Any Manager or HR Professional"; Sharon Armstrong and Barbara Mitchell; 2008