The HR team isn’t just for recruiting, managing salaries, and hosting fun Friday activities; they help the organization achieve its goals. An HR strategic business partner helps you align the people with the organization’s overall goals.

As per a Gartner survey, it is found that 50% organizations don’t utilize the skills of their team, and only 8% have data to understand their team’s skills. This shows the pivotal role of HR in making a business successful. That’s why today we will discuss the roles and benefits of HR as a strategic business partner and how you can help your HRM team become more strategic. The Proxperts can help you with tailored HR consulting services for SME to create a strategic team to boost your revenue. Contact us now!

What is the role of an HR strategic business partner?

Gone are the days when the HR department worked on the sidelines, isolated from strategic roles and focusing only on hiring and administrative roles. How HR has become a strategic business partner that aligns HR strategies with business goals to improve team efficiency, overcome people’s challenges, and save costs.

Human Resource Business Partner (HRBP) focuses on understanding the vision of the business and creating workforce strategies for better efficiency and organization. They collect and analyze data to identify the performance gap and develop a plan to help employees improve and recruit suitable talent. They also help identify future leaders for organizational success.

Benefits of the HR team as a strategic business partner

The following are the benefits of an HR strategic business partner for businesses, especially SMEs.

Performance optimization

One of the primary roles of HR is to hire efficient employees to improve the overall performance of the team and organization. Therefore, when HR managers get a seat in the boardroom, they can understand the organization’s needs from its employees.

HRBP can help improve employee performance by 22% (source). Therefore, you should keep the HRM department closer to your core strategic team. It helps you reduce employee turnover rate and the time and cost of hiring and regularly training new team members.

Create a nurturing culture

Strong culture increases your revenue 4X faster. That’s because when the team member’s career goals and values align with the company, they are bound to work for longer and better. That’s why HR strategic business partners help you create a nurturing culture where employees communicate and develop their skills.

Fostering leadership skills

The HR business partner closely monitors employee performance to identify potential leaders. They create training programs, challenging tasks, and mentorship sessions to foster leadership skills in the team. Thus, you can create future leaders of your organization who can help you achieve your goals better.

Improve employee engagement

Employee engagement isn’t just on the fun Friday; it goes way beyond that. Your employees feel valued when they get the opportunity to represent their ideas and contribute to the projects. When the team has a good bond, it improves productivity, and employees tend to stay in the same organization. The HR strategic business partner is responsible for creating opportunities for the employees to contribute and grow.

 The refocus on HR from administrative tasks to strategic position helps you improve overall productivity, optimize the talent in your organization, and achieve your goals better.

But how can HR transition from an administrative to a strategic role in an SME?

The following are a few tips to help your existing team become more strategic rather than administrative.

Train the HR team for a strategic role

The first step in this transition is to train your existing HR team. Help them learn more about the business world, analytics, and give them exposure to how the industry works. This will help them get familiar with the skills needed to make strategic decisions for organizational growth.

You’ll need to offer training, and that’s where The Proxperts can help you. Our team creates a tailored training program based on your industry and business goals.

Involve the HR in the strategic meetings

Once they get the basics, it’s time to involve them in your strategic business meetings where key decisions are made. Being part of these meetings can help you get the workforce POV, and they can make better recruitment strategies and align with other strategies to achieve the organizational goals.

Focus on achieving long-term goals

The HRBP focuses on helping businesses achieve their long-term goals through skill training programs, strategic recruitments, and identifying and training the future team leaders.

Use advanced technology to work efficiently

Automating repetitive HR tasks helps the HR strategic business partner focus on more critical tasks. Therefore, you should introduce smart HR technology to sort the resumes, track employee performance, and perform data analytics. Accurate data will also help them make data-backed strategies and present them to the board members.

Develop improvement strategies

The HR strategic partners keep a close eye on the people KPIs, such as turnover rate, performance, employee engagement and more, to identify the gaps. They create improvement strategies to overcome the challenges and help the organization achieve its highest potential.

The Proxperts is here to help your HR team transition from an administrative role to becoming your strategic partner. We create a tailored HR consultation program to help your SME business grow. Contact us to know more.

Conclusion

HR responsibilities go beyond organizing Fun Friday. They are the core of creating a nurturing company culture and help the organization achieve its goals. Therefore, HR strategic business partners are essential to optimize employee performance, reduce the turnover rate, and improve employee engagement. When they get seats in the boardroom, they can align the people strategy with organizational goals. They can hire the right people, train the future leaders and improve the team’s efficiency. The Proxperts is here to help you build a strategy HR team for your SME business. Contact us to know more.

FAQ

How does strategic HR support business growth?

A strategic HRM aligns the people’s strategy with organizational goals. Therefore, they can help reduce employee turnover and increase team efficiency by hiring and retaining the right candidates. They also help organizations identify potential leaders and create tailored strategies to hone their leadership skills.

What are the challenges of HR becoming more strategic?

A few challenges the HRs face in becoming more strategic than administrative are the lack of exposure and training. The organizations can start by training their HRs to work with advanced technology that automates many administrative tasks and focus on being more involved with the company’s strategic team. An overall industry exposure training can also help them understand their role better.

How can you develop a strategic HRM team?

You can develop a strategic HRM team through thorough and targeted training to help them understand the nitty-gritty of the business world. This will help them understand their role and acquire the skills needed to play a strategic role. The Proxperts is here with tailored training and consultation programs to create a reliable HR strategic business partner.

How does an SME business benefit from having a strategic HR partner?

The following are a few benefits of having strategic HR partners for SME businesses:

• Better talent management based on the organization’s goals
• Creating strong future leaders with a tailored training program
• Improve employee engagement to reduce the turnaround rate
• Creating a nurturing work culture that helps employees grow