Recently, surveys have shown a decline in the popularity and appreciation of business HR (Human Resources) strategies. Talk of business HR is everywhere. Some companies swear by it as the saviour of their employees and companies; whilst other business owners and managers completely dismiss it.
So what do you think? Is it possible for a HR strategy work – and to prove it? Many people question HR because it is a “qualitative function operating in a quantitative environment”, as said by Mike McDonnell, the Chairman of the Chartered Institute of Personnel and Development. Things like sales and IT have “real”, measureable results that can be definitively calculated, whereas a HR strategy often does not.
However, there are ways to measure the effects of a HR strategy that will give you a quantitative result… So HR can work, so long as you follow through with guidelines of strategy development.
Step #1: Developing Your HR Strategy.
Before beginning to carry out a HR strategy, you must make sure that you have all the elements required for the HR strategy. In business HR, strategy development requires a few key things:
You require a certain perspective or opinion that exists for the target people,
A pattern or trend must emerge over time,
You must have an intended course of action or a plan.
Step #2: Know What Result You Need.
Once you have all the elements you need for developing your HR strategy, you need to know what results you want to measure, as well as what change in those results would qualify as a success or failure. How much would employee satisfaction have to rise to classify as a positive result? How much of an increase in profit would qualify as a success?
Step #3: Gather Your Evidence.
Before the strategy begins, evidence needs to be collected on the current situation; you must establish a base-line. This base-line is used to measure future results against. This will show whether or not anything has changed, whether the change is positive or negative and whether the change is significant
Example: A business manager feels that his company could be performing better. Profits are not reaching their targets and the manager has noticed that employees have been lacking motivation and drive for the work. The manager decides that HR may be able to help improve the situation. The HR team outline that:
The employees are not motivated and have little drive for their work
A trend emerged showing that as motivation and drive in employees has declined, so have profits and customer satisfaction.
The intended course of action is to improve the satisfaction of the employees to increase their motivation and drive for their work.
The HR team decide that employee satisfaction should be measured as well as customer satisfaction and profits. This was a relationship can be established between the two variables. The HR team would then survey employees and customers to quantify their satisfaction levels; and profits will also be recorded. Once the strategy development is complete and the strategy is put in place, then the surveys can be redone, and the profits recorded again, to monitor the changes.
It is a fairly simple process that, if followed correctly, means that business HR strategies can be measured and thus proves whether or not they do indeed work.
