What Are the Advantages of Strategic Human Resource Management?

There are several key advantages of strategic human resource management, including selective hiring, encouraging optimal employee performance, and promoting a constructive work environment. The practice enables firms to bring their overall objectives into better alignment with the actions of their employees. When used correctly, strategic human resource management can foster a collaborative working environment that drives the organization towards performance excellence.

The primary goal of strategic human resource management is to acquire and retain valuable human capital in the form of employees who will strive towards fulfilling the organization's main objectives. In order to accomplish this, an organization's human resource department must identify how to align its activities with the firm's strategic goals. Strategic human resource management may only become really useful if it is employed in a manner that is congruent with what the firm is trying to achieve. For example, a company cannot hire the best candidate for a position without first identifying the job's responsibilities and individual skills that are essential to making a positive contribution to the firm's culture.

Selective hiring helps weed out candidates who may prove to be detrimental to the organization's goals. A primary example would be candidates who have expectations that the organization is unable to fulfill. Some of those expectations can be related to promotional opportunities, pay structure, or job duties. There are a few organizations that conduct realistic job previews with prospective hires and gather their perspectives to gauge if the job is a suitable fit.

Besides recruiting and hiring a firm's personnel, human resource departments are actively involved in employee training and maintaining the employer/employee relationship. Ensuring the relationship remains constructive is another primary advantage of strategic human resource management. Activities that fall under the scope of employee/employer relationship maintenance include assisting managers with acclimating new employees to the organization. Some of these activities include explaining benefit programs and how these rewards can add to employee satisfaction.

Directly related is the ability of human resources departments to help foster a positive work environment and generate enthusiasm for the organization. These departments may lead and participate in training and motivational workshops that educate employees on the company's strategy and how its objectives will have a direct, beneficial impact. Human resource departments may also explain the reasoning behind a company's strategies.