HR strategy: why and how to implement it in your company?

Establishing an effective HR strategy is essential for any company wishing to achieve its business and other objectives. This requires a clear understanding of an organization's culture, employees and processes.

Deploying this strategy involves a multitude of aspects, from managing human capital to adapting to today's digital challenges.

This article, co-written with human resources consultant Laure Guérin-Taquet, looks at the definition of HR strategy, how to define it in 5 steps, and our top tips for a good HR strategy that will even serve your employer brand!

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Understanding HR strategy: definition, challenges and examples

What is an HR strategy?

An HR strategy is a long-term plan developed by a company to effectively manage its human resources. It aims to align the objectives of the HR function with those of the company.

The key elements of an HR strategy include :

• Understanding current resources: this phase involves analyzing the skills, talents and aspirations of existing employees.
  
  
• Defining strategic objectives: this may include attracting and retaining talent, improving employee productivity, or promoting internal mobility.
  
  
• Creating a detailed report: this document describes the current situation of the HR function, the strategic objectives and the measures to be put in place to achieve them.
  
  
• Communicating the strategy to all employees: it is essential to clearly explain to employees how the HR strategy directly concerns them, and how it will contribute to achieving the company's objectives.
  
  
• Continuous adjustment and optimization of the strategy: an effective HR strategy evolves in line with the changing needs of the company and the labor market.

The 3 challenges of human resources strategy

The challenges of a global human resources strategy are many and varied. They are linked to the company's internal and external challenges.

• One of the first is talent management. Recruiting and retaining the best people is crucial to the company's growth.

• Another major challenge is adapting to technological and societal change. Digitization and new forms of work, such as telecommuting and hybrid working, require strategic thinking to optimize the employee experience.

• Finally, HR strategy must also take into account the challenges of training and developing employee skills, as well as corporate culture.

A word from the expert

Establishing an HR strategy is essential for aligning human resources management objectives with those of the company. This helps to maximize productivity, improve talent management and adapt to labor market challenges, such as digitalization and new forms of working (telecommuting, hybrid).

An effective HR strategy is based on an initial skills audit, the definition of clear objectives (such as talent retention or performance improvement) and a structured action plan to achieve these objectives.

It includes key aspects such as recruitment, ongoing training and HR communication management, which are essential for boosting employee commitment and fostering a dynamic working environment. The integration of digital tools (HRIS, ATS, GPEC) supports the automation and optimization of HR processes, while the involvement of managers in the strategy is crucial to ensure its operational success.

Last but not least, the evaluation of the strategy via KPIs enables us to measure its effectiveness and adjust it according to the results obtained.

Laure Guérin Taquet,

The implementation of an HR strategy can take many forms, depending on the specific characteristics of each company. We can distinguish between :

• Global HR strategies, which aim to manage all the company's talent. 👉 For example, a company may choose to focus on external recruitment to attract new talent, or prioritize internal mobility and training to develop existing skills.

• Targeted HR strategies, which focus on a specific aspect of human resources management. 👉 For example, a company might develop a specific HR strategy for integrating new employees, or for managing employee performance.

Many concrete examples can illustrate these different approaches. For example, some leading companies have implemented effective HR strategies by ensuring alignment with corporate goals, defining clear objectives for each employee, or encouraging corporate differentiation to attract top talent.

👀 Example of the Bouygues Group's HR strategy:

What's the difference between HR policy and HR strategy?

HR policy, unlike HR strategy, is the implementation of the long-term vision defined by HR strategy. It brings together a set of concrete measures and actions designed to organize the management of human resources within a company. In a way, HR policy is the day-to-day operational expression of HR strategy.

It covers all areas relating to human resources, such as :

• recruitment and hiring processes
• training;
• compensation;
• GPEC, etc.

Each of these actions is carried out with respect for the company's culture, values and environment, with the aim of meeting employees' expectations and supporting them in their development. In this way, HR policy is adapted to the realities on the ground and to the specific characteristics of each company.

How to build an HR strategy: 5 key steps

For a company, developing an effective HR strategy is a complex process requiring a thorough understanding of many internal and external factors.

Here's a detailed elaboration of each step to help you create a robust, fit-for-purpose HR strategy!

Step 1: Take stock of the current HR situation

This first step is fundamental to laying the foundations for an effective HR strategy. It involves taking stock of the company's current human resources. This involves a detailed assessment of :

• skills ;
• performance ;
• employee satisfaction.

According to a Deloitte study, companies with advanced HR analytics programs are 30% more likely to feel ready to meet future talent needs.

The HR audit should include an assessment and analysis of:

• current structures ;
• policies ;
• current HR practices;
• skills gaps, and therefore training needs to ensure employee development, etc.

Step 2: Define HR strategy objectives

Defining objectives is a key step in designing an HR strategy. They must be aligned with the company's unified vision and global objectives. They must be specific, measurable, achievable, relevant and time-defined (SMART).

💡 For example, if the company is aiming for 20% growth, HR might set itself the goal of improving employee productivity by 15% in one year through targeted training.

This step requires a thorough understanding of the company's long-term goals and how HR can contribute to them. It is also important to consider future challenges, such as changes in technology or the labor market, and plan accordingly.

HR strategy objectives should also include initiatives to improve employee engagement and satisfaction, as these factors are directly linked to productivity and retention.

Step 3: Develop an action plan to achieve these objectives

To draw up an action plan and achieve the objectives of your HR strategy, it is necessary to determine the precise actions to be implemented and their prioritization.

It is also necessary to define the responsibilities of each person involved. The HR team plays a major role in this process, but the success of the action plan requires the involvement of the entire organization.

To monitor and evaluate your action plan, the use of HR dashboards and key performance indicators (KPIs ) can prove highly effective. These tools enable you to measure the effectiveness of your strategy and make adjustments if necessary.

Finally, don't forget to include in your action plan elements such as :

• Recruitment: define the job profiles to be filled and the preferred recruitment channels.
• Skills development: identify the training you need to develop your employees' skills.
• Communication: draw up a communication plan to inform your employees of the various stages in the implementation of your HR strategy.

Step 4: Integrate recruitment and training into your HR strategy

Recruitment and training are two crucial aspects of any HR strategy.

• Strategic recruitment means hiring not only for current needs, but also for the future skills required for the company's growth and evolution. This involves forward planning, taking into account market trends and changes in skill requirements.
  
  
• Ongoing training, meanwhile, is essential to bridge skills gaps and prepare employees for future challenges.

A Gallup study revealed that companies that excel in employee development have 11% higher productivity.

It's therefore crucial to integrate ongoing training programs that not only meet immediate needs, but also prepare employees for future responsibilities and technologies to be mastered. 🔮

This includes initiatives such as leadership development, technical training, mentoring programs and professional coaching.

Step 5: Managing HR communication

HR communication is an essential pillar of HR strategy and plays a key role in employee engagement. It focuses on three main areas:

• Attracting: this involves enhancing the company's image in the eyes of potential candidates, by communicating its values and corporate culture.
• Recruiting: communication must be effective during the recruitment process, to attract talent that matches the company's needs.
• Retaining: regular, transparent communication with employees is crucial to keeping them engaged and motivated.

To manage HR communication effectively, it is important to establish a long-term communication strategy and an HR communication plan. The latter determines how the HR communication strategy will be deployed in practice. It includes a reminder of the company's HR communication objectives, values and organization. It is also essential to precisely define HR communication targets and tools.

Our advice for a good HR strategy

Rely on digital tools

Integrating digital tools into HR strategy has become essential for optimizing processes and boosting organizational efficiency. These technologies offer automation of administrative tasks, in-depth data analysis for informed decision-making, and improved communication and employee engagement.

In short, they provide real day-to-day support for certain tedious tasks, allowing you to focus on what's most important: the people who make up your organization.

Which tools should you integrate into your overall HR strategy? Examples of applications :

• HRIS (Human Resources Management Information System): offers centralized management of various HR processes such as recruitment, performance management, HR planning, and payroll management. It also enables HR data to be analyzed and structured. 🛠️ Example of a high-performance HRIS software: Eurecia.

• ATS (Applicant Tracking Systems): automates recruitment by multicasting job offers, managing applications, facilitating CV sorting and organizing interviews. It is also used for career management and talent development. 🛠️ Example of a high-performance ATS software: softgarden.

• GPEC software: for planning staffing needs, tracking skills and careers, and setting up training platforms.

• Payroll: automates and simplifies payroll management, including vacations, absences and social declarations, adapted to different company sizes.

• E-learning and training: it offers continuous training opportunities through online modules, MOOCs, and virtual classrooms, tailoring professional development to employees' specific needs.

These tools are not just task facilitators, but genuine strategic levers for modern, efficient human resources management.

Taking management into account in overall HR management

Management is another essential lever in the implementation of an HR strategy. It provides the link between management and employees, relays HR strategy to the operational level and contributes to the achievement of company objectives.

Integrating management into overall HR management means in particular :

• involving managers in the definition of HR objectives, for better buy-in and effective implementation ;
• involving managers in HR processes such as recruitment, training and team performance assessment;
• develop managerial skills, through specific training and coaching, to reinforce their role as relays of HR strategy.

In short, effective management is a key success factor for a successful HR strategy. It optimizes company productivity by improving employee well-being and motivation.

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And finally, how do you assess the effectiveness of your HR strategy?

To assess the effectiveness of your HR strategy, the use of HR KPIs (Key Performance Indicators) is essential. These indicators enable you to measure the performance of the actions you've implemented, and to guide future actions. Evaluating HR effectiveness means keeping a close eye on these KPIs.

KPIs can include social management indicators to measure quality of life at work, but also more specific indicators linked to the management of the company's human capital.

These indicators include

• average time to hire ;
• cost per hire ;
• candidate satisfaction;
• compensation and benefits.

It is also possible to carry out performance and skills assessments to measure the effectiveness of HR actions.