The HR strategy is a tailored plan that aligns the company’s workforce goals with its overall business strategy. The HR Strategy Framework 2025 will be driven by advancements in technology and changing workforce expectations.

A strategic HR function aligns talent management with the company’s goals by ensuring the right people are in the right roles to foster growth, drive innovation, and enhance adaptability. To achieve this, developing a well-defined HR strategy is essential and this article will provide you with the insights.

What Does Strategic HR look like?

Strategic HR is a forward-thinking approach to managing employees and includes four elements:

1. Planning for the future
2. Supporting business goals
3. Building a strong culture
4. Leveraging HR metrics and analytics to improve the HR performance

What Is an HR Strategy?

The HR strategy is a tailored plan that aligns the company’s workforce goals with its overall business strategy. Think of it as the “big picture” plan for HR. The purpose of the strategy is to ensure the human capital side of the business is as strong and future-ready as the operational and financial aspects.

The resource strategy is like a blueprint for how your organisation uses its assets: the employees, technology, and capital to achieve its objectives. For HR this will mean ensuring the company has access to the skills and talents it needs now and in the future. A good resource strategy balances efficiency with effectiveness.

Difference Between HR Strategy and HR Planning

The HR strategy is about the what and the why. It is the overarching vision: Where does the business need to go, and how can HR support. The HR planning, on the other hand, is about the how. This is the detailed roadmap for turning the strategy into reality, with actions embedded in HR processes.

Summary of the HR Strategy Framework

1. Strategic Focus Areas and Rationale

   The strategy must identify the primary areas of focus for HR (why), articulating the reasoning behind these priorities. This involves determining where HR efforts can most effectively support the organisation’s goals, considering both current needs and future challenges.

2. HR Actions and Business Contribution

   For each identified focus area, the HR strategy should specify the HR actions to undertake and clearly demonstrate how these actions embedded in HR processes, contribute to achieving broader business objectives.

3. Critical Success Priorities

   The strategy should clearly state which HR initiatives and goals that are essential to driving impactful results. These priorities serve as a guiding compass, focusing resources and efforts on what matters most.

4. Measurement of Progress and Success

   Establishing clear metrics is vital for tracking the progress and evaluating the success of the HR strategy. These metrics should align with key performance indicators (KPIs) and provide actionable insights into the effectiveness of HR initiatives.

5. Key Milestones

   The strategy must include a roadmap of key milestones, outlining specific goals and timelines. These milestones serve as benchmarks for progress, enabling regular assessment and course correction where necessary.

6. Communicate and Review

   The HR strategy should be shared with stakeholders and regularly be reviewed and adjusted to maintain its relevance and effectiveness.

HR Strategy Framework 2025

The HR Strategy in 2025 will be driven by advancements in technology and changing workforce expectations. One major HR trends will be the increasing use of AI and automation in HR processes. Read more about the content of the HR strategy for 2025, in our article The HR Strategy 2025 Framework.

Follow us and subscribe to our free newsletter to stay up to date with the latest HR news and trends.

More Information

• Future HR Roles in 2025 and Beyond.
• The Future of HR: Global HR Trends 2025.
• The HR Strategy 2025 Framework.
• Strategic International Human Resource Management (SIHRM).