Why is Strategic HRM Important?

by • September 7, 2021 • Business, CareerComments (0)767

It’s no secret that strategic human resources management is essential for a company to thrive. Human resources are the currency of every organization. Most companies have a defined human resource management outline. Some can be simple, while others are complex. 

The human resource management of some companies does not extend beyond recruitment and onboarding. However, for a business to have some edge over others in a certain industry, it must have strategic human resource management incorporated into its business plan

This article aims to enlighten you on what strategic human resource management is, why it’s essential, and the process elements.

What is Strategic Human Resource Management?

Strategic human resource management is a process that adopts a thorough approach to gather the ideal team for the advancement and success of a company or organization. You cannot be familiar with strategic human resource management when you’re ignorant of conventional human resource management. 

The traditional management of human resources involves employing, orientating, and training the most suitable or qualified employees for an organization. It also entails providing welfare, development programs, a friendly working environment, incentives or benefits, and remuneration. These things motivate them to be at the top of their game and work with the utmost efficiency. 

On the other hand, strategic human resource management goes beyond this. It entails the recruitment and training of staff in concordance with the company’s vision statement, goals, strategies, and mission statement. It entails getting and keeping employees for the benefit of the employer, the employees’ department, and the company. 

It’s more sophisticated, productive, and participatory than traditional human resource management in advancing the organization’s interests. Strategic human resource management demands interactions between the human resource department and other departments within the organization. 

This is done to know the desires of each employee, their vision, and how it aligns with the organization’s vision. It’s also done to know how to develop strategies to hire and retain staff in alignment with the organization’s goals and equip these departments with what’s needed to thrive. 

Why is Strategic Human Resource Management Important?

First of all, strategic human resource management, when effectively practiced, can be the fulcrum of a thriving and well-established business. 

It ensures the cohesiveness of the company, bringing the different but inter-dependent departments together with a defined goal or vision, which accommodates the objectives of the various departments. 

Strategic human resource management makes your organization function like a well-serviced car. It’s the engine of a well-oiled machine (comprising different parts but working as one unit). 

Strategic HRM helps the HR department analyze the competence of each department and their degree of cohesiveness with other departments. This further helps them recognize ways to improve these departments and recruit the ideal employees who have the perfect skill-set to ensure success. 

The Elements of the Strategic Human Resource Management Process

Have a Complete Grasp of the Organisational Goals

Before you can begin and execute strategic human resource management, you must first thoroughly understand your organization’s goals. Is it dominant in the market? Staking territories in new markets? Total rebranding?

Whatever the goal might be, you can create practical and feasible strategies to make those goals achievable. Having a defined goal is like a destination on a map. In the same way, creating strategies to enable you to achieve those goals are like directions to your destination on the map. With a clear sense of direction, your human resource department is equipped to begin implementing the HRM process. 

Assess your Team

After establishing your goals and the strategies to achieve them, the next step is to evaluate the team you’re working with. In this step, you assess their skills and how they can contribute to the goals that you’ve set out to achieve. 

This is where you acquaint yourself with those members of your team who are willing to be trained in new roles that are instrumental to the goals you want to achieve. This can be done during the employees’ performance reviews which take place at certain intervals. 

Carry out an Analysis on the Abilities of your Human Resource Department

After assessing your team members, you need to analyze your human resource department thoroughly. This is necessary to make your strategies foolproof. 

You should consider questions such as: is my human resource department able and ready to execute the process of strategic HRM? Are the members of the team adequately equipped with training and knowledge for the process? If the answers are negative, you will need to effect some changes by training them as they begin the process. An alternative method is by bringing in fresh members to handle it. 

Investigate Other Departments

At this stage, the spotlight should come to the other departments in the organization. If you have gotten here, it means that your human resource department is ready for the process. 

They will begin examining every department to create cohesion between them so that their respective goals will align with that of the organization. This process is to make the human resource department aware of what each department needs and what can be done to enhance their performance. 

Recruit With the Needs of your Departments in Mind

At this stage, the human resource department, now equipped with the knowledge of what each department needs, can commence recruitment of new staff in concordance with those requirements. For instance, some of these departments may need specific expertise, while others may require employees who can fit in better with the current organizational culture. 


Strategic human resource management is the solution to acquiring and keeping the most suitable employees to ensure the success of the organization in its industry. This article discusses the process, why it’s essential, and the elements that make up this process. 

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