The success of an organization largely depends on how its resources are managed in alignment to the Organizational goals and objectives.

A successful HR Strategy focuses on mapping the competencies of current resources, forecasting future resource requirement, analyze skill gap in the system and integrate the manpower plan with the Business Strategy of the organization.

The key to a successful HR strategy is to identify what motivates and drive the employees, conduct a employee satisfaction survey and rank the key motivators in the order of prioritization.

Employee motivators varies from individual to individual. For some competitive salaries plays an important role yet some are more inclined towards growth opportunities.

HR Strategies in an organization are designed on the basis of the overall Business Model, the key business strengths and weakness as well as external factors promoting and impacting overall business growth.

The HR strategies are more inclined in creating competitive advantage through people who understand the vision and mission of the organization.

The same is achieved by practicing the following in the Organization:

  1. Effective Recruitment Strategies focused on:
  • Identification of Sources of Recruitment: Internal vs External.
  • Brand Building and Presence of the Company.
  • Recruiter Training on the Open positions.
  • Detailed Job Description in line with Organizational goals.
  • Regular vs Flexible Hiring.
  • Rigorous Interview process to filter right candidate.
  • Psychology test to check culture fit.
  1. Performance Driven Environment with the help of:
  • Clearly Defined Goals and Targets.
  • Team based Training.
  • Individual (skill) based Career Advancement Opportunities.
  • Rewards for high Performers.
  • Emphasis on Innovation and Flexibility.
  1. Communication Strategies
  • People involvement from all part of Business.
  • Image the Future- Create a shared vision to engage people in business strategy.
  • Make communication relevant at different levels- Allow individuals to include’why’ as well as ‘how’, ‘what’ and ‘when’ in their speech.
  1. People Activities focused on designing of:
  • HR Philosophy on how to treat and value people.
  • HR Policies and Programs to facilitate change and address people related business issues.
  • HR Practices to drive and motivate leadership, managerial and operational roles.

Strategic Human Resource Management, HR Strategy and HR Best Practices

 Examples of successful HR strategies: How to make your organization stand out.

Here is a fascinating list of innovative practices by some companies that offers food for thought for any HR professional.

  1. RMSI: Initiatives like child psychology, parenting, self-defense classes, health benefits, photography club, painting classes, acting workshops, movie-making workshops, Zumba lessons, sports tournaments and many more.
  2. American Express: Smart Savings program, health benefits.
  3. Hindustan Unilever: Health and hospitalization insurances, a mediation room, yoga classes, a library and low-cost quality education at Aditya Birla Schools for employees' children.
  4. Canon: Annual health checkups and camps, and accident insurance for employees as well as their family members.
  5. Intel Technology: Bonus programs, health facilities, financial assistance for job-related education, indoor and outdoor games.
  6. Intuit Technology: LGBT discussions, options to return after a career break, and start new projects outside office.


A focused approach on the overall development of an employee leads to a motivated and driven team.

A well-articulated HR strategy, focuses on Company Characteristics that motivates and energies employees by creating a culture of Innovation, inculcating business values in them and offering them with Performance based Opportunities.

HR strategies are best designed and implemented once the HR understands the core Business Model, vision and mission statement and align the same  in their  HR planning and execution.

The best HR strategies always stay focused on getting the best employee performance resulting in overall company performance.

How HR Strategies Affect Performance.

 There is a strong relationship between HR strategies and business profitability.

The moment an employee joins the organization he/ she starts perceiving the organization in terms of its culture, environment, development programs,  reward and recognition schemes, compensation strategies etc.

Such a perception leads to their desirability to continue and perform in the organization leading to their commitment, motivation and engagement.

 HR Strategies in Small and Medium-Sized Enterprises

It is evident that there is no HR strategy that is applicable to all organizations, industry wide. In order to design successful HR strategies for your own organization  it is important to first analyze your industry, map your customer base, analyze  consumer/customer needs, analyze competition and identify competitive advantage your product/ service has over competition.

At the same time it is important to map where the company is weak and at a distinct disadvantage and what capabilities are required to compete in the consumer market.

Once the problem is identified and is worked upon, the focus shifts to the human resource planning who will act as key contributors in driving the vision and mission to the next level.

For a healthy SME, the HR Strategies are focused on:

  • Organization hierarchy and Structure with clearly defined goals and objectives.
  • Business growth driven performance norms.
  • Investment on Individual growth and development.
  • Cost optimization in terms of resource planning .
  • Strong Organizational Communication and expectation setting.
  • Right Marketing of your Business.
  • Innovation and Technology

Future Challenges

The Talent Problem

How to identify your key resources and how to retain them is the biggest challenge an organization will face.

It is important to create HR strategies  that identify potential leaders, map their competencies, identify means to take them to the next level.

This will require clear expectation settings, pre-defined KRAs, targets directly linked with business objectives, fair and transparent reward and recognition schemes, employee motivation tools and techniques, career advancement plans, attractive compensation packages and may more.

Reduction in Headcount

HR is expected to play a more strategic role. Besides developing better HR processes, they are also expected to reduce the headcount to reduce operational cost on hiring , training etc. This lead to design a HR strategy  focused on less yet key people who will be groomed and developed to deliver overall business results.


About the Author Neha Gupta Vishnoi

Ambitious and result-driven HR Professional with 12+ yrs of experience in various gamuts of HR : Strategic HR Business Partner, Talent Retention and Engagement, Talent Acquisition, C&B, Performance Management, Change Management

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