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As the role of HR continues to evolve, the co-founder of a HR consultancy has provided expert insights into how strategic HR management can drive business success.
The role of HR has transformed from mere administrative support to a pivotal element in driving business success. Strategic HR practices are now essential for cultivating a culture of accountability, attracting and retaining top talent, and optimising overall employee performance.
To further explore this topic, Ilona Charles, CEO and co-founder of HR consultancy Shilo, has drawn on 25 years of experience in HR to provide expert insights into how strategic HR practices can significantly drive a company’s success and long-term sustainability.
Key HR actions impacting business success
Strategic HR actions are instrumental in shaping overall business success, with several actions directly impacting organisational performance and growth.
Charles identified three critical areas including “strategic recruitment”, which involves the targeted acquisition and retention of top talent; “effective performance management”, which aligns employee objectives with organisational goals, and “comprehensive employee development”, which is crucial for fostering skill enhancement and facilitating career progression.
“Implementing robust employee engagement initiatives and maintaining a positive workplace culture are crucial for boosting productivity and reducing turnover,” she added.
By concentrating on these critical HR actions, Charles said: “HR professionals can drive significant improvements in business performance and contribute to long-term success”.
Creating a culture of accountability
HR leaders are pivotal in cultivating a culture of accountability within businesses, which is essential for achieving improved outcomes and driving overall business success.
To build this critical culture, Charles said HR leaders should begin by “setting clear expectations and defining roles and responsibilities from the outset”, as it ensures that team members understand their specific duties and how they contribute to the organisation’s goals.
“It's essential to establish regular check-ins and feedback mechanisms to monitor progress and address any issues promptly.”
HR leaders can further cultivate a culture of accountability by offering continuous training and access to essential resources, which “helps team members meet their objectives, while recognising and rewarding accountability reinforces its importance,” Charles said.
“Additionally, fostering open communication and a supportive environment encourages employees to take ownership of their work and contribute to better overall outcomes.”
What distinguishes best practice?
Effective employee performance management hinges on setting clear expectations and holding team members accountable.
To achieve this, Charles said: “Best practices for setting clear expectations and holding employees accountable for performance include establishing specific, measurable, achievable, relevant, and time-bound (SMART) goals that align with organisational objectives”.
Frameworks such as Objectives and Key Results (OKR) complement the application of SMART goals by aligning individual objectives with organisational targets, she continued. This alignment is beneficial as it provides employees with a clearer understanding of how their performance contributes to the company’s overall success.
“Regularly communicating these expectations through written documentation and ongoing discussions ensures clarity,” Charles said.
“Implementing structured performance reviews and regular feedback sessions helps track progress and address any issues as they arise”.
Building HR for business success
To drive business success, Charles said aligning HR strategies with overall organisational goals is crucial by first “understanding and addressing key organisational needs”.
A fundamental element of this approach is investing in a comprehensive talent acquisition and management strategy that empowers and enables businesses to “attract, retain, and develop top talent”.
Another pivotal step in empowering HR to drive business success involves, Charles said, implementing “effective performance management systems and foster[ing] a culture of continuous improvement and employee engagement”.
“Leverag[ing] HR data and analytics to make informed decisions and measure the impact of HR initiatives on business outcomes” enhances HR’s role in business success.
“By integrating these practices and taking a commercial approach to the delivery of HR initiatives, HR can contribute significantly to driving sustainable business growth and success”.
