Skip to content
All posts

How HR Practices Can Drive Business Success

1-Gaining a Competitive Edge

Human Resources is often seen as the backbone of an organization. The department manages the most vital asset of any business – its people. As companies continue to compete, it is imperative to embrace human resource best practices. In the current situation, companies have to implement every possible advantage for them to succeed in the market. One such realm is within or under the aegis of human resources. Any organization, whenever its HR practices are aligned with the business's goals, may have an amazingly improved performance and competitive advantage. Now, let's follow a blog about how effective strategic human resource management, leadership style of HR, and HR practices may help businesses succeed.

Strategic Human Resource Management:

A Discussion

2-Strategic Human Resource Management

In old methods, the HR department was tagged as an administrative center that takes care of the payroll and benefits. But lately, the trend is fast altering. Strategic HR is proactive and future-orientated; it entails aligning HR practices with the strategic direction of an organization to ensure that every HR program directly supports and contributes to achieving business goals.

Think about a company that wants to become a leader in sustainable building practices. In such a situation, strategic HR won't just hire for open positions. It would ensure proactive efforts to search for talents with expertise in green technologies of construction, training programs to upgrade the workforce's skills, and even design a recruitment campaign targeting the workforce from firms practicing sustainable construction. This way, the company can attract and retain the workforce that can help achieve its strategic vision.

Best Practices in Human Resources

Strategic Human Resource Management (SHRM) is the planning and execution of HR policies that generate employee skills and behaviors, which has a significant effect on the business. In other words, SHRM links HRM with the strategic goals and objectives to improve business performance and develop an organizational culture that fosters innovation and unique value creation.


What is Strategic Human Resource Management?

SHRM is the proactive management of people. It includes the forward thinking of methods to make a company better suited to the needs of its employees and its employees more ideal for the company. This means developing HR programs through a strategic framework that works towards long-term business goals and results.

Key dimensions of SHRM are:

3-Key Dimensions of SHRM

Alignment with Business Strategy

HR practices are designed in such a way as to be supportive and aligned with the strategic goals of the company.

Proactive HR Policies

An HR policy is made as a solution to future needs and not just as a reaction to present requirements.

Performance Measurement

Measuring the effectiveness of HR initiatives and their impact on business performance continuously.

HR Strategies

Good HR leadership is a must for effectively implementing SHRM. It plays a pivotal role in shaping the culture and direction of the organization.


Some ways HR leaders can contribute toward business success includes:

4-Some ways HR leaders

Developing an Organizational Culture

A need for a sense of belonging and commitment among employees. The kind of culture that will give this is shaped by HR leaders in:

Values and Vision

Setting clear values and vision for the company and communicating them.

Inducing Employee Engagement

Establishing programs and initiatives that promote employee morale and engagement.

Recognition and Rewards

There is a need to have recognition programs where employees could be recognized with rewards for their achievements and years of service.

Fostering Talent Development

Talent development is another way to have competitive human resources. Human resource leaders can focus on:


Continuous Learning Opportunities

Here, there have to be opportunities for training and development that can help sharpen the employee skills at work.

Succession Planning

This involves identifying future leaders and preparing them for the roles ahead.

Mentorship Programs

This involves pairing experienced employees with new staff for knowledge transfer and career development.


Effective Human Resource Management Practices

5-Effective Human Resource Management

It comprises best practices to improve the overall efficiency and contribution of HR activities toward realizing organizational goals. Some of these practices include:

Recruitment and Selection

Employee hiring is a starting point in developing a vibrant workforce. Some effective recruitment and selection practices, among them are:

Clear Job Descriptions

Job roles and responsibilities should be obvious.

Use of Multiple Recruitment Channels

Multiple recruitment channels to reach a broader scope of applicants.

Structured Interview Processes

Well-laid-out formal interview processes allowing fairness in evaluating a candidate.


Performance Management

6-Performance Management

Proper performance management ensures that the employee aligns with the organization's goals and objectives. The following are included:

Clear Objectives

Setting up SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for the employees.

Formal Feedback

Continuous performance appraisal and constructive formal feedback.

Performance incentives

Monetary or other rewards for a better performance.


How HR Contributes to Business Success

7-How HR Contributes to Business Success

HR's contribution to business success can be noteworthy when best practices are implemented adequately. Following are some ways by which HR can help in driving business success:

Increased Utility of Employees

HRM practices focusing on the well-being and development of employees can help in increasing the productivity of employees. It extends to a good working environment, personal development opportunities, and work-life balance.

Reducing Turnover Rates

The cost of a high employee turnover is very high to the business organization. On the other hand, effective HR practices that will minimize the turnover rate include competitive compensation programs, recognition programs, and career development opportunities for employees.

Increasing Innovation

A diverse and inclusive workplace drives innovation to its core. HR can support this culture by being fair in hiring processes, running employee diversity workshops, and creating inclusive work policies.

Risk Management And Compliance

HR keeps the organization in check with compliance to labor laws and regulations, thus limiting potential legal issues and fines for the organization. This consists of maintaining accurate employee records, fair labor practices, and ensuring the safety of employees on the job.

Best HR Practices for Business Success

8-Best HR Practices for Business Success

To maximize the impact of HR on business success, organizations adopt these best practices:

Alignment of Strategy: Aligning HR strategies at the workplace with business objectives ensures that initiatives taken by HR are supportive of the overall direction and goals of the organization. This requires close collaboration among HR and senior management.

Data-driven decision-making: Utilize HR analytics and data for insights into workforce trends, employee performances, and the effectiveness of HR programs. It enables informed decision-making and effective strategic planning.

Employee Engagement: Keeping high levels of employee engagement is critical for productivity and retention. This can be best obtained through communication, recognition programs, and opportunities for career advancement.

Continuous Improvement: Constant evaluation and improvement of HR practices to better match the changing business needs and market conditions. It further entails taking the market trends as well as innovative HR technologies and practices into consideration.


The war over talent is real, and strategic implementation of the best HR practices is the only thing you need to win. By following these strategies, high performers can be attracted and kept through a culture of engagement and development. This translates into a more productive, innovative, and compliant workforce that an organization needs.

But from where do you start? Right here, at Interim HR, together, let's convert your HR function from an administrative headache to a strategic powerhouse propelling your business to new heights.

Note: Interim HR Consulting cannot and does not provide legal advice. It’s important to consult with qualified counsel before adopting any new policies. It’s also your responsibility to determine whether a legal review of the work product is necessary before implementation.