What is the Role of HR in Strategy?

With HR, the operational level is going to be the main focus. HR’s policies, programs, and processes will need to correlate, collaborate, and align with the organization’s business units. HR’s resources will need to be spent on activities that add value and assist the business units in fulfilling their work toward the strategic plans. It may be with workforce planning, talent development, or incentive compensation programs.

HR professionals need to develop strategic planning skills—which are discussed in the following sections—such as scanning the environment, formulating strategy, assessing risks, and setting SMART goals and objectives. This role that HR fulfills is the biggest growing role that organizations demand today, which is why the HR job title of HR business partner was created.

HR’s role includes building bridges with both internal and external stakeholders, where they exist. HR needs to view issues from differing perspectives and seek resolutions to help “bridge” the differing functions in a collaborative effort. There may be a policy within the payroll function of finance that conflicts with a new compensation incentive plan that is being developed with the sales unit to help account management personnel achieve goals that fit the strategic plan. The HR professional will need to view the two conflicting issues and seek a resolution for the best of the organization and its strategy.