Creating an Effective Human Resource Strategic Plan 

by | Jun 22, 2023 | Blog

  • Laura Carpenter

    Laura Carpenter is a Consulting Services Director for Integrity HR. She has over 25 years of experience serving as a human resources leader and business partner in the manufacturing, healthcare, call center customer care, e-commerce, fulfillment operations, and SaaS technology industries. Contact us for more insights - 502-753-0970 or

An effective Human Resource Strategic plan is a dynamic roadmap that guides HR professionals in managing and directing their human capital. The plan aligns with the company’s strategic goals and focuses on maximizing employee productivity while controlling associated costs. A well-crafted Human Resource Strategic plan has the potential to enhance employee satisfaction, boost organizational performance, and ensure legal compliance. 

Understanding the Business Strategy 

The first step in developing a Human Resource Strategic plan is understanding your company’s business strategy. The Human Resource Strategic plan should support the business’s strategic objectives, whether they involve expanding into new markets, introducing new products, or improving customer service. As an HR professional, you must collaborate with business leaders to understand these goals and determine how the workforce can best contribute to them. 

Conducting a Workforce Analysis 

A thorough workforce analysis is vital in understanding the status of your employees. This involves examining the number of employees, their skills, demographics, performance levels, and potential for growth. Moreover, it requires anticipating future workforce needs based on business strategies, market trends, and technological advancements. This exercise helps to identify any gaps and create plans to bridge them. 

Identifying Skills Gaps and Staffing Need 

After conducting a workforce analysis, the next step is to identify skills gaps and staffing needs. Do you have enough staff to meet your future goals? Do your current employees have the necessary skills, or is further training required? Tools such as skill gap analyses, succession plans, and workforce projections can be instrumental in this step. 

Recruitment and Selection Strategy 

 A strategic recruitment and selection process is crucial for attracting and hiring individuals who align with your company’s culture and can contribute to its strategic goals. This might involve improving job descriptions, using new recruitment channels, or implementing better screening methods. Ensure your selection process is fair, effective, and promotes diversity within the organization. 

Employee Development and Training 

Employees need opportunities to grow and develop professionally. Implementing a comprehensive employee development and training program can enhance productivity, job satisfaction, and loyalty. This may involve on-the-job training, coaching, mentorship programs, or external learning opportunities. Regular skills assessments can help tailor these programs to individual and company needs. 

Performance Management and Feedback 

An effective Human Resource Strategic plan must include robust performance management and feedback mechanisms. Regular performance reviews can identify top performers for recognition and those in need of extra support. Remember, feedback is a two-way street; employees should also share their views and suggestions. 

Compensation and Benefits Planning 

Your Human Resource Strategic plan should outline how your organization will stay competitive in terms of compensation and benefits. This involves regularly benchmarking against industry standards and considering what types of benefits are most valuable to your workforce, such as flexible working arrangements, health benefits, or retirement plans. 

Legal Compliance 

The Human Resource Strategic plan should also address how the organization will comply with employment laws and regulations. This includes fair hiring practices, workplace safety regulations, wage and hour laws, and more. Consider conducting regular compliance audits to ensure your practices are up to date. 

Building a Positive Workplace Culture 

Creating a positive, inclusive workplace culture is crucial for employee retention and productivity. Your Human Resource Strategic plan should outline initiatives to promote a healthy work environment, such as diversity and inclusion programs, team-building activities, and mechanisms for employee feedback. 

Crisis Management and Contingency Planning 

No organization is immune to crises. An effective Human Resource Strategic plan anticipates potential crises and outlines clear steps for handling them. This might involve contingency plans for sudden staff shortages, emergency communication procedures, or succession plans for key roles. 

Evaluating and Updating the Human Resource Strategic Plan 

Finally, remember that a Human Resource Strategic plan is not a static document. Regular evaluation and updates are necessary to respond to changes in the business environment, company strategy, and workforce. Key performance indicators such as employee turnover, job satisfaction levels, and productivity can provide valuable insights during these reviews. 

Developing a comprehensive Human Resource Strategic plan is a significant step toward achieving your company’s strategic goals. By understanding your business strategy, analyzing your workforce, identifying skill gaps, and planning for recruitment, training, performance management, compensation, legal compliance, and crisis management, you set your organization on a path to success. With a robust Human Resource Strategic plan, your organization is well-equipped to attract, develop, and retain a productive, satisfied workforce that drives your business forward. Contact us here to discuss how to set up your Human Resource Strategic Plan. 

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