Five Ways HR Impacts Strategic Planning

It’s important for HR to stay current with business trends because they significantly impact strategic planning. HR isn’t just about managing personnel; the department ensures compliance, financial stability, and operational efficiency by adapting to legal changes, responding to economic fluctuations, and leveraging technological advancements. 

Here are five ways HR impacts strategic planning.

Legal Updates

HR professionals keep up with legal changes and regulations, which can affect employee pay, leave rights, and company policies. This can get especially tricky for remote companies or companies with multiple locations that bring different state-level laws and regulations into play. Staying informed helps the company avoid legal issues and fines – and helps leaders make contingency team plans for things like parental leave. 

My go-to resources for legal updates are SHRM, HRCI webinars, and our HRIS, Gusto, which provides access to Mineral, an HR and compliance platform.

Economy

The economy has been unpredictable in recent years, leading to workplace trends like the Great Resignation, the Big Stay, and layoffs. These conditions impact a company’s ability to hire, offer benefits, and adjust compensation. By staying current on economic trends, HR can better incorporate these insights into their overall strategy.

HR Technology

HR technology is rapidly evolving, especially with the introduction of AI. Many performance management systems and Applicant Tracking Systems incorporate AI components. Given the current economic climate, employees are often expected to do more with less. Utilizing AI in well-thought-out and controlled processes helps HR professionals stay current with trends and maintain efficiency.

Past Trends = Current and Future Trends

The old saying goes, "Past behavior is the best predictor of future behavior.” The Great Reshuffling and the Big Stay quickly followed the Great Resignation in 2021. At JDM, we noticed employees were staying longer, and turnover rates were decreasing. In response, we focused on training our managers to keep employees engaged and continuously develop their skill sets.

Your Team

One of the most critical HR trends is leveraging your team's insights. By conducting pulse surveys, stay interviews, and regular check-ins, HR professionals can gather accurate, impactful information about what matters most to employees. Important note here: don’t just ask the team for their feedback; tell them what you’re going to do with it, and keep them updated as those initiatives roll out. Asking for feedback and sitting on it is a surefire path to getting less feedback.

Over the years HR’s role in helping to proactively shape company strategy, not just react to personnel issues, has become more clear to organization leaders. For me, it’s been a pleasure to work with the other leaders at JDM to keep our strategy in line with the trends mentioned above.

If you’re a leader interested in chatting about how to incorporate HR more seamlessly into your business strategy, get in touch!