8 tips for managers to align HR goals with those of the company
Strategic management planning is a vital process for every company, and it is equally important to ensure that each department understands how its achievements fit into the bigger picture. As a key participant in the smooth running of the company, the human resources team needs to ensure that their own goals are in constant alignment with the goals of the company as a whole.
To do this, HR managers must take proactive steps to see if their team's policies and processes are paving the way for other departments to succeed as well. But how can managers do this?
1. Be Industry and Business Savvy
Human resources should not exist to just manage processes. If HR is not business savvy, how can we help the organization achieve its goals? The answer is that we cannot. As HR leaders, we need to understand our companies and industries and have knowledge of business in general – finance in particular. Only then will we be ready and aligned with organizational and HR goals.
2. Communicate with all departments
Taking the time to visit with the leaders of each department will help ensure they are on the right path to success. Hearing leaders explain their processes and goals will help the HR manager determine whether they are aligned with the company's overall goals. The HR manager will have the opportunity to ask questions, gather information, make an assessment, and provide recommendations.
3. Be in tune with changes
HR objectives need to support meeting the organization's general needs, with measures of success aligned with the company's strategic objectives. An essential part of successfully executing your HR strategic plan is staying in tune with changing business needs. HR must be ready to assess and adjust if necessary to meet business needs.
4. Assess overall team skills
The HR manager must first assess the team's skills to ensure that each department can meet its objectives. If you discover skills gaps, find training to close them. Additionally, anticipate future staffing and training needs so that when you hire new employees, they can quickly come in and get to work.
5. Organize a working session with department heads
Host a session for department heads where an executive reviews company goals and then outlines steps for translating company goals into departmental goals. Within the session, set aside time for department heads to set at least one goal for their teams. Finish by having department heads work in groups of two to three to share their goals and gather information from each other.
6. Consider the company’s mission and vision
HR managers need to use the organization's mission and vision as a litmus test to ensure that the department's goals are aligned with those of the company. Does the goal support the mission and vision? Can it be articulated as such? HR must help leaders ensure goals are clear, concise and aligned by creating shared responsibility and clear expectations.
7. Compare HR and business metrics
Establish key HR metrics that are tracked every quarter and reported to stakeholders. Make sure these HR metrics are well connected to other business metrics. Show how they are the main indicators critical to the success of your business. Consider metrics like well-being, employee engagement, diversity and turnover.
8. Focus on increasing retention
One of the main objectives of companies is to reduce operating costs. HR leaders can help ensure your goals are aligned in this area by focusing on decreasing turnover and increasing retention. Based on the cost of replacing an employee – about 16% of annual salary for lower-paying jobs and 213% for executives – HR can contribute to the company's bottom line by conducting employee satisfaction surveys.