It is hard to start a new venture in a highly competitive market, but if you really wish to start a new business during the pandemic, then you should prepare an action plan that never fails; otherwise, you will definitely be thrown out of the race of growing new business. The most essential thing you need to consider is the human resource policies because, through such rules and regulations, you will recruit a workforce, onboard them, and manage them in the working premises. As an owner of the new business, you just present your idea in front of employees, but they are the only ones who work so hard to achieve the pre-decided goal.
Steps For Growing HR Strategies For New Startups To Meet Success
Have you ever wondered what HRs are doing nowadays? Because today in this hi-tech era, they can manage their work online through hr management software, so what are they doing in their free time? No, they are not passing the time; they are continuously working on implementing and improving strategic HRM practices in the working premises in this fast and paperless era.
For implementing actionable HR strategies, you first need to understand ‘Strategic HRM,’ which means the HR strategies which are coordinated with all over the business to achieve the pre-decided long-term and short-term goals or objectives and boost the performance of the business. There is a thin line of difference between HRM and strategic HRM; i.e., HRM is reactive in nature while strategic HRM is proactive in nature. Consider the following steps for strategic HR approach for new startups to meet success;
Awareness Creation
If you want to start something innovative, then the first thing you need to do is, check the past of the organization and find out the things that you think to be improving. The personnel manager must discuss the whole process of strategic HRM with other department heads because it is a process of improving the performance of the whole business. So, creating awareness of strategic HRM and its importance before implementing anything that affects other departments is essential.
Take A Review Of Organizational Goals
The next step of growing strategic management is to review the organization’s goal. Objectives should be measurable, sync with the value and culture of the business, achievable, etc., because it is a roadmap of the company, and you need to work according to the goals for the next two to three years until you accomplish it effectively.
Analyze External And Internal Factors
Once setting a goal, you need to analyze external and internal factors that affect your business.
External Factors
- The political factors; includes government rules and regulations, tax policies, trade restrictions, tariffs, etc.
- The economic factors; including inflation rate, unemployment, interest rate, economic growth and development, etc.
- The social factors; including family, friends, colleagues, neighbors, social media platforms, etc.
- The technological factors include automation, internet connectivity, security, data entry, etc.
- The environmental factors including ecological factors, demographic factors, etc.
- The competitive factors; including rival’s policy of pricing and other things.
Internal Factors
- Corporate objectives are the main factors that we can consider while preparing for strategic human resource management.
- Finance and accounting, marketing strategies, human resources, etc., are also considered essential internal factors that affect the business and hurt its growth.
- Internal relations of employees and employers.
- A company’s policy and working environment, etc., are the internal factors that affect the business. Thus, before making any decision related to HR, they first need to check both out-house and in-house factors.
SWOT Analysis
SWOT metrics is a technique through which you can analyze a company’s strengths, weaknesses, opportunities, and threats. SWOT-analysis helps the organization to check its current position and future opportunities. Moreover, it provides actionable insights on meeting business targets.
Gap Analysis
After compilation of the SWOT analysis, the next step you need to do is the gap analysis, which means identifying the current scenario of the business and the objective you want to achieve in the near future. Gap analysis generally highlights the strengths and weaknesses of the company.
Make An Alternative Strategy
It is essential to prepare a backup plan or alternative strategy to grow strategic human resource tactics in the working premises. According to the third step, you already analyze both the factors, i.e., external and internal, but some factors that hurt the growth of the business are unforeseen, like the current situation (The pandemic COVID-19). So, by preparing creative backup plans or alternative strategies, you will be able to secure your business from unexpected events. Thus, preparing a backup plan means securing the future.
Implementation Of Strategic HRM
The only reason to implement the strategic human resource management tactics is to grow the organization as a whole, not just a single sub-department of the company. For implementing the best HRM tactics, as a personnel manager, you just need to focus on the following points;
Focused Hiring
Change the recruitment procedure from manual to online because, in this fast and paperless era, no one can apply manually and wait for the results. Almost 98% of the company uses recruitment software to recruit modern employees. Moreover, if you don’t have such technological advancement, then it will affect the goodwill of your business.
Easy Onboarding
Have you ever seen the first day of a new employee? Correct, it might be full of paperwork. But that time has gone now! Nowadays, the new concept of self-onboarding is popular that helps the employees to change/edit their personal and professional details on the company’s records; however, only 47% of the company uses the modernized tactics to onboard the new employee.
Value And Culture Of An Organization
Training that changes employees’ beliefs and mindset (not the technical training) is the essential part while implementing strategic HRM in the working premises. By providing the best training to your employees, you can change the value and culture of an organization.
Moreover, the culture of your organization should be reflecting value to the employees. The more they feel worthy about working with your company, the better you can answer the question – How to avoid burnout and retain employees? Because culture is a primary element that shows an impact on their overall work. Showing the right way to make them focus on their job by reflecting the value of your firm is a significant portion of strategic HRM.
Measure And Control Processes
After completing the steps mentioned above, the last step is to measure and control the whole procedure and analyze the effectiveness of the process. Then, if you find any mistakes or lacking points, you can change the process according to the objective you set before.
Conclusion
Strategic human resource management improves the company’s performance by improving the work quality of each sub-department of an organization. For implementing an actionable strategic HRM in the working premises, following the above step is essential. Implementation of strategic human resource management is just a starting point of success and achieving the pre-decided objective, but following the same for a longer period is the only thing you need to do to accomplish the pre-decided objective.