By Fábio Mandarano, Stratec Partner
The Strategic human resource management It is a priority theme for organizations due to its potential for “value generation” for the business. The success of organizations is related to their ability to transform their competitive strategy into results through human capital.
It is essential to carry out the Executive Alignment and the other collaborators with organizational strategy, aiming to ensure the success of the business.
To this end, the strategy must be detailed at the tactical level, through an action plan and project initiatives, so that all employees are aware of the results expected of them (deliverables) and it is possible to make them feasible as planned.
From then on, questions arise that will also have to be assessed and addressed:
What technology tool will be used for Strategic Management?
Does your company currently use any people management software? How does your company ensure the quality of the information generated? Having specific software for individual performance management makes it possible to control and analyze profit-sharing programs at all management levels of the company. Participants can track how their bonus is doing and what is preventing it from being higher, indicating transparency in actions and the distribution of results.
How to ensure employees are fully aligned with the organization's strategic objectives?
It is important to emphasize that strategic compensation is a compensation model linked to business development, where employees receive extra compensation for their contribution to the organization's success. Therefore, to be successful, a strategic compensation system must be based on clear criteria, as objective as possible.
How to unfold strategy into performance indicators, goals, and projects?
Performance indicators are essential for tracking each employee's dedication and their contribution to the company's success.
See also our educational material on process indicators
How to monitor results and correct deviations in a timely manner?
Does your company assign a team to monitor the results? How is this tracked by Senior Management? It is very important to see the action plan for the indicators, knowing who is doing what to achieve the goals, creating positive pressure for their fulfillment.
How to monitor individual performance?
In order to implement individual performance management in a company, it is essential to create a solid base of information so that the various important points can be aligned and a strategy developed based on them.
Read also: Competency Matrix. What is it and what is it for?
Will the compensation strategy be reevaluated?
A company that adopts meritocracy links its management to targets and metrics. Goals are related to numbers, and metrics to criteria that will guarantee the quality of their products/services. However, before adopting meritocracy, the company must consider the historical and cultural concepts to which it belongs. The concept of merit varies greatly from place to place. Something that is considered valuable in one place may have no value in another.
How can we make the calculation of results and bonuses more transparent?
The systems Strategy Management and Individual Performance Developed by Stratec, these tools provide the means to support the deployment of goals and their day-to-day tracking. With the use of these tools, each employee has transparent access to the evolution of their performance and the organizational performance.
All these and other issues must be assessed in a Strategic Management project. This is because, if the company is growing rapidly, it is essential to guarantee a workforce that is in line with the organization's development needs. Similarly, if the business is facing a crisis, it is vital that management sizes up the workforce and uses it as a lever to increase productivity in order to protect organizational sustainability.
This way, it becomes clear that strategic human resource management is not an exclusive concern of the HR department, but rather, of the entire management of the organization.
Fábio Mandarano – Is an Organizational Consultant and Strategic Compensation Specialist. Co-author of the book “Strategic Compensation – The New Competitive Advantage”.
