Aligning HR strategy with business strategy

No doubt we have all heard the saying ‘I hope it turns out okay’ and it never does? Hence why it’s important not to rely on ‘hope’ and ‘luck’. The same applies in the business world. Organisations cannot take a chance with that kind of mentality when it comes to maximising its competitive advantage to accomplish its mission.  

Today’s businesses are evolving rapidly, therefore having a solid strategy is crucial for the success of any organisation. As they say, ‘an organisation without a business strategy is like an entity without direction’. To execute the strategy, a successful organisation will seek each area within the business to align its departmental strategy with the overall business strategy. HR’s contribution in this area is probably the most crucial as it allows the organisation to be well-stocked with the right number of talent, which in return create outcomes.

How to align HR strategy with business strategy  

For HR strategies to successfully align with business strategies, it is important for HR professionals to have a thorough understanding of the goals and directions of their business. This will allow them to have a clearer definition of what success will look like. It is important for HR to initially connect with key stakeholders to find out where the business is currently at, where it wants to be in twelve months, two years, five years, etc. Once success is defined and HR understands the drivers of value, it can then evaluate the current workforce and forecast what skillset will be needed for the business to succeed. A good business will know that involving HR first will be the wisest idea as they affect the operation and execution of all the other functions, for example, workforce management, talent acquisition, performance management, employee retention, employee engagement/collaboration, L&D, and WH&S to name a few.

Connecting employees with business strategies

It’s all well and good when HR aligns its strategies with the business and a plan is developed, however if the existing employees are not engaged, especially during the implementation of the plan stages, then all of HR’s work will be for naught. Once the strategies are aligned, the most crucial stage for HR will be to ensure employees are connected to the business strategy and its goals. Engaging employees will enable them to be prepared for change, become more willing to make decisions, take appropriate risks and act in the best interest of the organisation. If employees are not open to change and if the business has a culture of ‘this is how we always do things and no change is required’, then HR has a tough road ahead. Therefore, HR’s role will be crucial in training the workforce on change management and embracing the opportunities it could bring. Change will also enable increase productivity in the workplace and general morale.


This article is prepared to only provide general information about the topic. It is not intended to be used as advice in any way.

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