An HR strategic plan translates your HR strategy into an operational plan with key milestones and focus areas. 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.
An HR strategic plan converts an HR strategy into a single document focused on execution. This document is a summary of the strategy so all stakeholders can understand it and how they contribute towards 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.
What should be in an HR strategic plan?
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. The HR strategy canvas is a useful tool that can be used to outline the most important aspects of the HR strategy that will inform the strategic plan.
Here is an overview of the key components of an effective HR strategic plan:
- HR ambition and mandate: It’s important to start by stating the plan’s direction. This vision statement declares HR’s purpose and destination, and the mission illustrates how it will get there.
- Business priorities, values, and goals: Since an HR strategic plan must be linked to the organization’s aspirations, you should include the wording of official organizational values and goals.
- HR success metrics, objectives, and key results (OKRs): List the plan’s objectives and the metrics for measuring progress. HR OKRs will help quantify the success of the HR strategic plan.
- Summary of key strategic HR initiatives: Detail the main initiatives for each area of HR that will facilitate achieving the HR strategy’s goals. These are often focused on recruitment, compensation and benefits, organizational culture, employee experience, and employee performance management and development.
- HR investments to be made in the operating model and skills required to deliver the strategy: Outline how the HR department is organized and delivers its services, such as business partner, functional, or agile HR operating model. State which skills and technical expertise HR professionals need to uphold this type of operating model.
- Key resources: Identify the budgetary, technology, and human capital resources needed to implement the HR initiatives. Summarize how they will be allocated to avoid cost overages and employees being overextended.
- People risks to manage and mitigate: Name the potential barriers to executing the HR strategic plan and how your organization can mitigate the risks. For example, a tight labor market may require introducing innovative talent attraction and recruiting methods.
- Strategic focus areas and priorities: State the activities in the priority areas that HR will focus on while executing its agenda. Explain why the activities will improve HR service and support business objectives. For instance, how new succession planning techniques will ensure leadership roles are well-staffed.
- Stakeholders: Identify the most important stakeholders that have to be considered in the strategic plan. Also, consider how the strategy should be translated and communicated to them based on their needs.
Developing an HR strategic plan
1. Evaluate the quality and relevance of your HR strategy
2. Assess current HR capabilities
3. Outline the priorities and objectives of your HR strategy
4. Create specific action plans based on your strategic plan
5. Understand the audience groups for the strategic plan
6. Develop a communication plan
7. Make your HR strategic plan document easy to read and understand
2. Assess current HR capabilities
3. Outline the priorities and objectives of your HR strategy
4. Create specific action plans based on your strategic plan
5. Understand the audience groups for the strategic plan
6. Develop a communication plan
7. Make your HR strategic plan document easy to read and understand
👉🏻 Download HR strategic plan templates
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.
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.
You can learn to think and work like an HR strategist on the Strategic HR course.
