What is Strategic Planning?

‘Strategic planning’ refers to the process of aligning the human resources function with the overall strategic goals and objectives of an organisation. It involves identifying and implementing HR strategies, initiatives, and actions that support the organization’s long-term vision, mission, and business strategy.

Here are key aspects of strategic planning in HR:

Alignment with organisational goals: Strategic planning in HR begins with a deep understanding of the organisation’s strategic goals and direction. HR professionals collaborate with organisational leaders to identify how the HR function can contribute to achieving those goals. This includes understanding the organisation’s industry, competitive landscape, and future challenges to develop HR strategies that align with the organisation’s strategic priorities.

Workforce planning: Strategic planning in HR involves analyzing the organisation’s current and future workforce needs. This includes forecasting the demand for talent, identifying skills and competencies required to drive organisational success, and assessing any gaps in the workforce. Workforce planning ensures that the organisation has the right people with the right skills in the right positions to meet its strategic objectives.

Talent acquisition and retention: Strategic planning in HR includes developing strategies to attract, recruit, and retain top talent. This involves identifying the target candidate profiles, sourcing channels, and recruitment approaches that align with the organisation’s strategic needs. It also includes creating retention strategies to engage and retain key employees, such as implementing career development programs, competitive compensation and benefits, and a positive work environment.

Performance management: Strategic planning in HR includes designing and implementing performance management systems that support the organisation’s strategic goals. This involves setting clear performance expectations, defining key performance indicators (KPIs), providing ongoing feedback and coaching, and conducting performance evaluations. Performance management processes are aligned with the strategic objectives to drive employee performance and development.

Learning and development: Strategic planning in HR involves identifying the skills and competencies required for the organisation’s future success and developing learning and development initiatives to build a capable workforce. This includes creating training programs, leadership development initiatives, and career development opportunities that align with the organisation’s strategic goals. HR professionals may also identify external learning resources and partnerships to enhance employee development.

Succession planning: Strategic planning in HR includes developing succession plans to ensure continuity of critical roles within the organisation. This involves identifying key positions, assessing potential successors, and implementing talent development programs to prepare employees for future leadership roles. Succession planning helps the organisation to build a pipeline of talent and mitigate risks associated with leadership transitions.

HR metrics and analytics: Strategic planning in HR incorporates the use of metrics and analytics to measure the effectiveness of HR strategies and initiatives. HR professionals track and analyse key HR metrics, such as employee turnover rates, employee engagement levels, training effectiveness, and talent acquisition metrics. This data-driven approach helps to assess the impact of HR initiatives, identify areas for improvement, and make informed decisions to support the organisation’s strategic goals.

Strategic planning in HR involves aligning the HR function with the organisation’s overall strategic direction. It ensures that HR strategies, programs, and initiatives support the organisation’s long-term vision and objectives. By effectively integrating HR into strategic planning, organisations can optimize their human capital and create a competitive advantage in the marketplace.