Strategic Human Resource
Management (SHRM) Planning is the process through which
organizations align their human resource practices and workforce strategies
with their long-term business goals and objectives. The aim of SHRM is to
ensure that an organization’s HR functions—such as recruitment, training, development,
compensation, and retention—are strategically aligned with its overall mission,
vision, and business needs.
Strategic HRM planning
involves analyzing the current and future human resource needs of the
organization, identifying gaps, and developing strategies to address those
needs to support business growth, competitiveness, and performance.
Key Components of Strategic
HRM Planning
- Aligning HR Strategy with Business
Strategy
- The first step in SHRM planning is
ensuring that the HR strategy supports the organization's overall
strategic goals. This requires close collaboration between HR and top
management to understand the organization's direction and ensure HR
policies are aligned with these objectives.
- For example, if a company’s strategy is
focused on innovation, the HR strategy might prioritize hiring employees
with creative skills, offering training in innovation, and creating a
culture that fosters creative thinking.
- Workforce Planning
- This is the process of assessing the
organization's current workforce and forecasting its future needs in
terms of size, skills, and competencies.
- Current Workforce Analysis:
Assess the skills, qualifications, and performance of the existing
workforce.
- Future Workforce Requirements:
Estimate future talent needs based on the company’s business strategy,
such as anticipated growth, new product development, or market expansion.
- Gap Analysis:
Identify gaps between the current workforce and future needs. This can
include skills gaps, leadership shortages, or staffing shortfalls.
- Talent Management
- Recruitment and Selection:
SHRM planning helps to define the types of talent needed to meet
organizational goals. It ensures that the right talent is recruited,
screened, and selected.
- Onboarding:
SHRM also focuses on improving employee onboarding to ensure that new
hires understand the company's culture and can immediately contribute to
business objectives.
- Retention:
It includes strategies for keeping top talent, such as offering career
development opportunities, creating a positive organizational culture,
and providing competitive compensation packages.
- Training and Development
- SHRM planning emphasizes continuous
employee development. This includes both leadership development and
skills training to meet future business needs.
- Upskilling:
Focused on improving existing employees' skills to ensure they can adapt
to technological changes or new business models.
- Leadership Development:
SHRM ensures that there is a pipeline of leaders within the organization
who are prepared to take on key roles in the future.
- Performance Management
- Performance management is integrated into
strategic HRM to ensure that employee performance is aligned with
business objectives.
- Setting clear performance expectations,
providing regular feedback, and ensuring performance evaluations are tied
to business goals are key strategies in SHRM planning.
- Reward Systems:
SHRM focuses on creating reward systems (monetary and non-monetary) that
encourage high performance and align with the organization's strategic
priorities.
- Succession Planning
- Succession planning ensures that there is
a pipeline of talent ready to step into leadership roles. It involves
identifying high-potential employees and preparing them for future
responsibilities.
- A critical part of SHRM, succession
planning ensures business continuity in the event of leadership
transitions or retirements, while also supporting career growth within
the organization.
- Organizational Development (OD)
- SHRM involves continuously improving
organizational structures, processes, and culture to make the company
more effective in achieving its strategic goals.
- This could include changes in work
design, team structures, leadership styles, or communication methods to
better support the company’s goals.
- HR Metrics and Analytics
- Using data-driven insights is an
essential aspect of SHRM planning. HR analytics help organizations
measure the effectiveness of HR initiatives and their impact on business
outcomes.
- Key metrics may include turnover rates,
employee engagement, cost-per-hire, time-to-fill, performance appraisal
results, and training ROI.
