HR’s Strategic Role Will Drive Organisational Success in 2025

December 26, 2024 thehrobserver-hrobserver-HR

Those HR teams that are in sync with organisational goals are nearly three times more likely to excel in shaping a strong organizational culture and improving workforce productivity and innovation, research by a leading HR research and advisory firm confirms.

According to a new research from McLean & Company, a well-aligned HR strategy is essential for organisations to thrive amid economic uncertainty, political shifts, and technological advancements.

McLean & Company’s HR Trends Report 2025 Preview highlights that organisations with an aligned HR strategy are significantly more effective in areas like employee experience, organisational culture, and adaptability.

HR strategy: A key to success

A well-constructed HR strategy not only enhances departmental performance but also ensures HR can adapt to future challenges, the research finds.

The research explains that HR effectiveness directly impacts organisational performance, with effective HR teams making organisations 2.2 times more likely to be high-performing in workforce productivity and innovation. Moreover, HR becomes and 2.0 times more likely to be high performing at the ability to change.

To assist HR leaders in building a robust strategy, McLean & Company has released a Create an HR Strategy research snapshot. This resource provides a clear four-step process designed to help HR teams align their priorities with broader organizational goals and address future business needs.

The Four-Step Process for Building a Successful HR Strategy:

  1. Assess the Current State: Conduct a scan of the external environment and an internal assessment of HR practices to evaluate their alignment with organisational goals.
  2. Establish Strategic Pillars and HR Outcomes: Clearly define what HR will aim to achieve and ensure these goals support overall business objectives.
  3. Identify HR Initiatives: Evaluate existing HR initiatives, identify gaps, and assess HR’s capability to execute them effectively.
  4. Create an Action Plan: Develop a detailed action plan, communicate the strategy to key stakeholders, and ensure its execution aligns with the organizational vision.

“An impactful HR strategy is fundamentally aligned with the broader organizational strategy,” says Amani Gharib, PhD and director of HR Research & Advisory Services at McLean & Company.

“In strategic HR organisations, priorities are driven not just by HR’s own agenda, but by the objectives of the entire organisation. This alignment ensures that HR initiatives support and enhance the broader organizational strategy, enabling HR to contribute meaningfully and adapt to evolving business needs in an unpredictable and ever-evolving future.”

The research from the advisory has has found that when HR’s priorities are well-aligned with the broader organisational strategy, HR is 2.8 times more likely to be highly effective at providing a great employee experience, and 3.3 times more likely to be highly effective at shaping a strong organisational culture.

Author
Editor

The HR Observer

Related Posts