An HR strategic plan solidifies and documents your HR strategy. For the entire organization to engage with the HR strategy, they must understand how it’s being played out. An HR strategic plan turns your HR strategy from an abstract concept into a concrete road map for HR and organizational success.
This article discusses what an HR strategic plan is, why you need one, and how to create one.
An HR strategic plan converts an HR strategy into a single written document. This document is a summary of the strategy so all stakeholders can understand it and put their efforts toward executing it.
This plan outlines specific HR goals, key HR initiatives, and priorities, aligning them with the overall business objectives. It serves as a guide for HR activities, ensuring they contribute effectively to the company’s growth and adapt to changing business environments.
HR leaders will typically collaborate with organizational leadership to formulate this plan, which describes how the HR strategy will affect operations and processes. It outlines the resources needed and actions that will take place to carry out the strategy and measure its progress.
An HR strategic plan keeps everyone centered on the HR strategy. It takes the strategy from an idea to something tangible that is implemented throughout day-to-day procedures.
An HR strategic plan should cover the HR goals and how they align with the organization’s business objectives. It should also be a road map for implementing HR initiatives that support these goals.
Here is an overview of the key components of an effective HR strategic plan:
Before your HR strategic plan becomes a single document, you need to have a clear idea of your HR strategy. The plan should reflect the organization’s broader objectives and address specific workforce needs and challenges.
Here are seven steps you can follow to develop an HR strategic plan:
An HR strategic plan must mesh with what the organization is doing and where it aims to go. This means that you should be in the loop on high-level planning and decisions to gain a solid grasp of what the business needs are. Then, you can work with leaders to identify the ways HR functions can fulfill these needs.
It’s essential to maintain open communication with key stakeholders and regularly participate in strategic discussions, ensuring HR initiatives are directly contributing to the company’s overall mission and objectives.
Once you know the business expectations of HR, you need to assess the current state of the HR department and see if it’s equipped to live up to them.
Start by evaluating the strengths, weaknesses, and opportunities you have throughout HR. Also, identify any external factors you should be prepared for. You can conduct a SWOT analysis to walk you through this process.
You can also assess the readiness of your HR department by performing an HR audit. This thorough review of all the HR policies and processes will shed light on how well they’re functioning and reveal which components need to be updated or modified to be more effective for upcoming business goals.
The next step is to probe beyond HR and assess the entire staff. Collect data on the existing workforce and identify any gaps in the skills required to take the company through its next phases.
Consider how you will address these disparities, such as through training, recruiting, or adopting new technologies.
These steps will help you establish what exactly your HR strategic plan should cover and focus on.
Summarize the priorities of your HR strategy and list the key objectives you’ve established.
Decide which specific initiatives or programs you will implement to fulfill each HR objective. Then, write a brief description of these that you can display in the finalized HR strategic plan.
There’s no point in preparing an HR strategic plan if it’s not accessible and engaging. The key to getting people to read and absorb the plan is to present the information clearly and concisely.
This starts with an appealing layout that catches the reader’s eye. Even though it will cover plenty of information, it doesn’t have to be overwhelming. There are many customizable templates available, or you can create your own.
Use simple, concise language that speaks to your audience. Avoid academic-sounding text and HR jargon that might alienate those outside of HR.
It’s fine to use company-specific words, phrases, or acronyms if they are common enough that everyone will be familiar with them. If necessary, you can also provide a brief, parenthetical explanation for a particular term.
Be sure to display the projections, metrics, and statistics in a digestible format. Including visual elements, such as charts, graphs, and infographics, is eye-catching and the most effective way to translate numbers.
You’ll want to keep all levels of the organization informed and engaged with the HR strategy so it gains traction. Start at the top with an HR strategic plan presentation to the leadership team and walk them through how the plan ties to the organization’s overall business strategy.
Find various ways to share the core message of your HR strategic plan with employees so they understand its purpose and the benefits of the progress being made.
A regular cadence of tapping into communication channels such as meetings, emails, newsletters, and posts on internal social media will help you provide the information and resources employees need to be in touch and grasp how the HR strategy and plan will impact them.
HR teams should have widespread exposure to how the plan is being activated and a clear picture of how their day-to-day activities are crucial to implementing the HR strategy.
Effective communication is especially important when the plan prompts shifts in policies or practices that affect employees. Announce the changes well in advance and explain what will improve and how they will benefit the company and teams. Be sure to include what type of support you will offer during transitions.
With the HR strategic plan document as a base, you can map out the specific action plans. Break down each objective into high-level, achievable tasks for accomplishing them. Then, assign the tasks to the appropriate teams and set a schedule of timelines, milestones, and deadlines for the activities.
Having this structure in place for HR leaders and teams to follow will keep them motivated and focused on the strategic HR plan. The action plans are also a point of reference for accountability, avoiding delays, and measuring progress.
Let’s look at some highlights from two real-life HR strategic plan examples:
The HR department of Pennsylvania State University (Penn State) structured its HR strategic plan around five overall goals relating to HR organizational effectiveness, recruitment, DIB, and engaging, developing, rewarding, and retaining employees.
The plan describes the steps for achieving the goals and fulfilling the HR mission of “creating innovative solutions to attract, develop, engage, and retain a diverse workforce.”
Penn State’s document also contains a “Planning Process” section that explains who was involved in creating the plan and the six phases of how it was carried out.
The County of San Mateo, California’s comprehensive document explains its five-year HR strategic plan by outlining three areas it will focus on to “maximize individual potential, increase organizational capacity, and position the County as an employer of choice.”
The priorities of each focus area (talent management, employee experience, and HR excellence) are also described.
The document format contains both narrative text and tables to convey the plan’s elements. It is also enhanced by graphics and photos for visual appeal and personalization.
Creating an HR strategic plan helps you bring your HR strategy to life and is a necessary component for demonstrating HR’s relevance and contribution in today’s business environment.
Once the planning process is finished, the strategy must be accessible to the entire organization. By developing a strategic HR plan document, you can communicate what HR is doing, why and how it’s being done, and make it clear that everything ties into helping the organization progress toward its goals.
Developing an HR strategic plan is essential because it clearly summarizes and communicates your HR strategy, making it more accessible to the organization and ensuring accountability.
How to write an HR strategic plan?Writing an HR strategic plan involves understanding your organization’s business needs, assessing what HR competencies you have on the team, analyzing the state of your workforce, formulating the goals of your HR strategy, creating an effective layout for the document, and presenting your plan to your stakeholders.
What is the difference between HR plan and HR strategic plan?An HR plan is a proposal for accomplishing HR activities. An HR strategic plan explains what HR will do to address an organization’s business needs and advance its goals.
