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A human resources strategy

By Teresa Howe, CHRP
December 16, 2002

Why do I need a human resources strategy?

Most organizations are facing significant challenges, which require additional skills and competencies to meet their business objectives. How many nonprofits are not faced with funding shortages, high turnover, absenteeism, grievances, skill gaps and/or a stressful work environment? Certainly nonprofit organizations are spending more time on their strategic goals today in the areas of fundraising, new technology and client services, but the role of Human Resources (HR) planning on a strategic level may not be as clearly defined.

Responsible leaders can take a proactive role in creating a long term HR strategy that is in harmony with the overall direction of their organization while addressing people issues. In any organization, the creation of a formal HR function provides the opportunity to link human needs to business needs. In general terms, the purpose is to:

• Ensure that the organization has the human capacity and capability to support the organization's goals and objectives.
  
  
• Provide effective recruitment, selection, retention and management of the performance of its people.
  
  
• Create an appropriate work environment that is in compliance with legislation and is sensitive to both management's and employees' needs.
  
  
• Provide structure, compensation, policies, standards, reward systems, benefit programs and grievance handling.
  
  
• Foster a culture, which reflects organizational values.

What are potential results?

Good HR management begins by asking the following questions, which correspond to four key results areas:

• Are people well led? -Leadership
  
  
• Is the organization becoming more productive? -Productive Workforce
  
  
• Does the work environment bring out the best in people? -An Enabling Work Environment
  
  
• Do peoples' competencies match the anticipated needs of the organization? -A Sustainable Workforce

These four key result areas are the focus of a healthy, visionary HR plan.

Where do I start?

A good starting point is to take a hard look within the organization and ask the following question:
Do we have the human capacity or capability to meet our business needs?

Another powerful way of stating this question is:
Do we have the right people in the right jobs with the right skills providing the right services in a place that is right for them?

The answers can be transformed into a significant strategic plan providing an organization with a long-term road map of needs. The crucial activity, however, is in translating these needs into specific activities, programs or projects, which clearly support the strategic objectives of the organization. Each actionable item is also a goal in and by itself. Essentially, the HR Plan seeks to:

• Identify HR programs and/or activities that will be maintained or developed to support the objectives.
• Identify the purpose, approach and general responsibilities of each major HR program and/or ability.
• Specify the means for which effectiveness is measured.

A challenging model which provides such a framework incorporating specific activities and projects while supporting one or more of the four key result areas is exhibited below.

Strategic Goal: Have the human capacity and capability to meet business needs.
Strategic actions planned using existing or new programs, projects or activities (supporting the four KEY result areas).

A. Through training and development programs (a sustainable workforce/a productive workforce):

• Identify skills and ability gaps
• Identify service/product innovations and resultant change
• Develop multi-skilled, multi-disciplined employees
• Provide technology-oriented skills upgrading

B. Through performance management systems (a productive workforce):

• Reward contributions linked to goals not seniority
• Motivate top performers through compensation/ rewards system

C. Commence formal succession planning to (leadership):

• Prepare for succession of all senior positions and key positions
• Ensure development of Managers and key staff
• Create talent pools
• Identify training needs and vulnerable areas
• Develop and implement a formal succession planning policy

D. Through an internal health, safety, wellness & environment program (an enabling work environment):

• Provide employee-oriented benefits within budget constraints
• Provide counselling and employee assistance to address issues, complaints and concerns
• Develop an effective Joint Health & Safety committee
• Manage disability and stress
• Promote healthy living both on and off the job

E. Through proactive workforce planning and forecasting (a sustainable workforce/a productive workforce):

• Recruit, select and retain industry and specialized talent
• Manage poor performance through terminations and early retirement if warranted
• Reassign work or re-evaluate structure where necessary
• Examine alternate scenarios, long-term projections and future staffing by watching demographic shifts and economic trends

F. Through formal communication vehicles (leadership/an enabling work environment):

• Translate desired culture into specific employee behaviour
• Implement and review Employee Surveys
• Improve labour-management relations
• Post and review policies, procedures on intranet
• Improve programs, look at performance management systems, Employee Recognition programs, employee committees
• Provide information in newsletters, emails, coffee breaks and meetings

How is effectiveness measured? Has the plan been successful?

While some areas of Human Resources are more difficult to measure than others, the plan requires specific measures or indicators be used to provide valuable information about the outcomes of each action. Some common HR indicators which can be incorporated into an effective plan include:

• Employee surveys, staff committee feedback and activities
• Attendance rates per employee, per department, per location
• Frequency and severity of work-related illnesses or injuries, WSIB claims
• Cost of benefits administration
• Workplace inspection and investigation reports
• Number of complaints or grievances
• Turnover rate, hiring costs, overtime, temporary agency costs
• Training and development costs
• Exit interviews

And on a final note...

An HR plan should be monitored and reviewed annually to ensure relevance of activities. As a living-breathing document, this plan will be ready to react and support any changes in the organization's direction or goals at any moment in time.

Teresa Howe, CHRP, is an independent HR consultant and writer. As an HR executive with 15 years of generalist experience, she has contributed to several successful organizations being recognized as Canada’s Top 100 Employers and created meaningful change. As a long-standing member of the HRPAO, she also serves as president of the Board of Directors for Jobstart, a not-for-profit organization, speaks at conferences and creates workshops on HR related issues. Teresa can be reached at tandthowe@yahoo.ca.

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