April 15, 2024 in Articles

3 Reasons Why HR Needs to Be Aligned With Broader Business Goals

Traditionally, the human resources department focuses on issues like recruiting, onboarding, resolving employee conflicts, and keeping workers happy. While all of these are critical functions of HR, human resources personnel can no longer operate in a vacuum. For your business to thrive, HR needs to be aligned with broader business goals.

By broadening the horizons of your human resources department, your business can do the following.

1.  Enhance Organizational Agility

The business landscape today is characterized by rapid changes and unforeseen challenges. Ensuring your company can adapt quickly to market shifts, technological advancements, and evolving customer expectations will allow it to thrive in volatile markets. This is where HR’s strategic alignment with business goals becomes pivotal. 

Getting HR involved in auxiliary functions like leadership development, change management, and long-term strategic planning can be a game changer for your organization. By understanding the broader business strategy, HR can proactively recruit, develop, and retain individuals with the skills needed to navigate future challenges. 

Furthermore, HR plays a crucial role in fostering a company culture that values adaptability, continuous learning, and innovation. By aligning HR policies and initiatives with business goals, you can cultivate a work environment that brings out the best in your team. If you find yourself needing to pivot, the workforce will be ready and willing to support new directions. 

2.           Drive Employee Engagement and Productivity

Engaged and productive employees are at the heart of every successful business. HR’s strategic alignment with business goals ensures that employee engagement does not get left to chance but is a deliberate outcome of well-crafted policies and practices. 

By linking human resources strategies to your company’s objectives, you can share with employees how their work contributes to the bigger picture. Individuals who understand the impact of their efforts will enjoy a stronger sense of purpose and belonging. This direct connection between daily tasks and the company’s goals boosts motivation, engagement, and productivity. 

The HR department also plays a key role in change management. According to Forbes, 45% of employees were feeling burned out by organizational changes in 2023. Change is a necessity for modern business, as making strategic improvements helps enhance competitiveness and productivity. However, organizational leaders must ensure that change initiatives align with the needs of line-level workers.

Human resources personnel can bridge the gap between the C-suite and employees. They can gather feedback about recent changes, conduct surveys, and keep team members in the loop about any upcoming initiatives that may be in the planning phase. 

Getting employees involved early and often improves morale and increases buy-in, thereby enabling the organization to achieve a stronger return on investment. 

3.           Facilitate Better Decision-Making 

Aligning human resources with your organizational goals will transform the department into a critical source of insights and analytics that can drive smarter business strategies. HR helps you keep your finger on the pulse of employees, understanding what they need and want.

Human resources departments that are closely aligned with your broader business strategy are better equipped to collect and analyze workforce data in ways that inform decision-making. HR analytics can provide valuable insights into turnover rates, employee satisfaction, training ROI, and other variables that affect the overall success of your organization.

Moreover, achieving synergy with your human resources personnel ensures that workforce planning considers both opportunities and potential risks. Whether it’s compliance with new labor laws or managing the risks associated with remote work, HR’s involvement in these processes helps insulate your business from liability. 

Tap Into the Full Potential of Human Resources

Despite what technological advancements your company may have made, people remain foundational to all you do. Taking good care of your people requires you to align the HR department with the big-picture goals of the organization.

If you are ready to rethink how you approach human resources, AssetHR can help. Our full-service team provides a range of customizable solutions, including payroll management, recruiting, compliance, leadership development, and more. Schedule a consultation with our team, and let’s chat about how AssetHR can position your business to thrive!