The business strategic direction should reflect the company’s vision, mission and core values, and serve as the link between the business plans and the people strategies.
I had a great time joining Dr. Rey Fremista, Michelle Morales, and Pat Dimayuga in a panel discussion at the Philippines HR Group HR Summit on October 13, 2023, at Sheraton Hotel Manila. We talked about aligning people strategies with business goals.
People strategies are plans that aim to optimize your workforce’s performance to achieve your business objectives. They usually involve initiatives anchored on values, mission, and vision, strategic people engagement, and organization engineering.
According to this article, people strategy is different from human resource strategy, which focuses on the operational side of people management, such as benefits, compensation, and workforce planning. A people strategy is more about building relationships between organizations and employees and providing them with everything they need to achieve the business goals.
Here are my thoughts on the discussion:
“To succeed in business, first you need to make sure that business objectives are anchored on the company’s values, mission and vision. Your business success depends on having your people on board with you. You need to align your people strategies with your business plans, so that everyone is working towards the same vision and mission. Otherwise, there will be conflicts when plans are implemented, evaluated, and rewarded.
The budget for total rewards should come from last year’s net profit and not from future earnings. For example, performance-based salary increase will affect future earnings vs. performance-based profit sharing that will use last year’s revenue.”
- Communicate your goals clearly and frequently. Make sure your employees know what you are trying to achieve, why it matters, and how they can contribute.
- Involve your employees in the goal-setting process. Ask for their input, feedback, and ideas on how to reach your objectives. This will make them feel valued and engaged.
- Provide regular feedback and recognition. Let your employees know how they are doing, what they are doing well, and what they can improve. Celebrate their achievements and reward their efforts.
- Offer learning and development opportunities. Help your employees grow their skills and knowledge so that they can perform better and take on new challenges. Provide them with training, coaching, mentoring, and career paths.
- Create a culture of collaboration and innovation. Encourage your employees to work together, share best practices, and come up with new solutions. Foster a positive and supportive work environment where creativity and experimentation are welcome.
If you are a fellow strategist, feel free to add practical tips in the comments section.