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Tactical HR vs a Strategic HR Review. What’s the Difference?
Each has its own individual purposes and goals that make it an integral part of a company’s HR planning. Here’s a look at what each one means, how they differ and how to decide which one is right for your organization. (Spoiler alert: The answer might be both!)
What is a Strategic HR Review?
Strategic HR Review is much like strategy in other areas of business. It’s the big-picture, long-term vision for how you want your HR department to operate today, tomorrow, or in five years. When companies sit down to do a Strategic HR Review, they look at various scenarios, what-ifs and goals.
Overall Business Strategy: This is the biggest-picture look at the HR planning process, and takes into account where the department fits into the organization as a whole, and what its role should be from a philosophical standpoint. It requires collaboration with senior leadership both inside and outside the company’s HR departments and a long-term vision of where everyone sees the company headed.
HR Department Objectives: Strategic planning is where leadership addresses issues like talent recruitment and retention, company culture, compensation and benefits, work perks and employees’ internal image of the department from a philosophical standpoint. Addressing these issues from the timeframe of years vs. months or days can help anticipate areas for opportunity and challenges as the business grows.
Maintaining a Competitive Edge: How the company presents itself to potential employees, stockholders and the public at large is partly HR, partly PR. But especially for companies that face heavy competition in the marketplace, how they handle HR at the executive level can make a huge difference between success and failure. Having a solid strategy in place here can be one of the biggest benefits of Strategic HR Review planning.
Mining the Data: HR data analytics can be used to draw a picture of your workforce and organization that anecdote might not otherwise uncover. By combining regular business metrics, such as return on investment and profit margin, to HR-specific areas like employee turnover, benefits usage and engagement, performance reviews and even attitude surveys, you can spot strengths, weaknesses and emerging trends