HR Strategic Planning – Where to Start

It is that time of year when companies are busy revisiting, updating or developing plans for the upcoming year. This planning should involve the identification of the organizational goals to be achieved over the coming year and resources needed to achieve those goals. An effective strategic plan determines where an organization is going over the next year or more, how it's going to get there and to measure whether or not it got there. The focus of a strategic plan is usually on the entire organization with the essence of the plan beginning with the identification of desired goals and objectives followed by the creation of a specific plan designed to help the organization realize those goals and objectives.

Ideally, and especially with respect to HR planning, the process is a continuous one that not only reflects the various priorities of your organization and its management but also demonstrates measurable progress toward the implementation of the organization's plan.

As managers and other individuals responsible for the HR function of their organizations begin strategic planning, it's easy to become overwhelmed by the sheer number of HR-related issues that require careful attention, thoughtful discussion, and purposeful action.

Nevertheless, prudent employers may want to add the following topics to their organization's HR strategic planning agenda.

1. Talent and skills assessment

• With the growth of every organization, the skills and abilities of current employees must meet the demands of the growth. The challenge for employers is to identify what talent exists today vs. what talent is needed to meet the strategic plan for the company.
• Employers can develop a skills inventory of all employees to help plan for development activities. The development activities should be focused on what other skills are needed for the company that the employee can strengthen to grow with the company.
• The skills inventory will also allow for the employer to develop a strategic workforce plan to meet the demands of the business.

2. Identifying the next “leaders” of the organization

• Many employers do not consider the planning for succession when it comes to the leadership. Leaders should be developed from within for a number of reasons but most importantly to improve retention of top performers and to retain the existing knowledge base.
• Have you identified your top performers? If so, have you planned a detailed development program to provide the right resources and tools for their success?

3. Reviewing and updating written job descriptions

• Employers no longer can afford to regard detailed, accurate written job descriptions as an item for the "back burner" or a well-intentioned project for "when things slow down." Job descriptions, when properly researched, drafted, implemented, and updated, not only can supply HR professionals with effective criteria for hiring decisions and employee performance evaluation but also may provide employers with helpful evidence in the event of litigation.
  
• The questions are simple: Do you have detailed job descriptions? Are your written job descriptions up to date? Do they depict the positions’ responsibilities, knowledge, skills and abilities accurately?

4. Formulating a comprehensive training plan for managers and supervisors

• The need for organizations to train their managers and supervisors in a number of HR-related issues is critical in supporting the growth of an organization. The strategically minded employer will seek to devise and implement an ongoing practical curriculum that focuses on training supervisors in HR policy and practice.
  
• When is the last time your organization provided relevant training for those charged with its management? What are the benefits and impediments to doing so? Does the cost of such a training program truly provide an adequate return on investment?

5. Creating document- and data-retention policies procedures

• December 2006 brought significant amendments to Rule 26 of the Federal Rules of Civil Procedure, which is the rule that defines the scope of discovery in civil litigation. With the changes, companies face increasingly difficult and expensive challenges to identify, preserve, protect, and disclose electronic data such as e-mail when faced with a litigation claim or even a potential claim.
• In the alternative, organizations that have ignored or neglected those challenges have been subjected to severe penalties, monetary sanctions, and other adverse consequences. Are your organization's "e-discovery" policies and procedures securely in place? Do your policies address the practical challenges of discovery in the course of civil litigation? Of equal importance, have your policies and procedures been effectively communicated across your organization?

6. Maintaining a sustained emphasis on workplace safety

• Debate regarding workers' compensation and associated workplace safety issues continues to gain the interest and understandable concern of employers. Not long ago, an executive of a major manufacturing company confided that workers' comp premiums and claims were, without question, his most pressing employment-related issue and a seemingly endless drain on his bottom line.
  
• Can an organization effectively take measures to reduce the costs associated with workers' comp claims and workplace safety challenges? Do those measures provide the desired results — namely, fewer claims and lower costs?

7. Benefits analysis and cost review

• The high cost of employer sponsored benefits is increasing at a fast rate. What this means is that employers must review their current benefits to determine if the plans are meeting organizational objectives and the cost effectiveness.
• There are several ways employers can develop their group sponsored plans to meet the current and future objectives of the company – including higher premium sharing to consumer driven plans. If you use a broker to assist with your plans, he/she should be reviewing and assessing your goals to offer alternatives to better meet your needs. If you are not receiving this level of service, it may be time for you to consider other options.

8. Employment Practices Liability Insurance

• Recent statistics have suggested that while more than one-third of all private companies had one or more discrimination charges or employment-related lawsuits filed against them between 2000 and 2005, fewer than 50 percent of private companies maintain Employment Practices Liability Insurance (EPLI).
• For smaller companies, a single prolonged employment litigation battle can be financially devastating. Accordingly, a number of questions immediately come to mind. Does having EPLI make sound business sense for your organization? What are the pros and cons of the coverage routinely available in the industry? Finally, why do many companies feel apprehensive about or fail to secure EPLI coverage?

Looking ahead

If the most important factor affecting the viability of an organization is the people who are the very embodiment of the organization, meaningful strategic HR planning must become an organization wide priority to address the myriad issues associated with any workforce, regardless of its size. As HR professionals are uniquely aware, the topics and issues identified in this article are only the tip of the iceberg.

Portions of this article are excerpts from South Carolina Employment Law Letter and written by an attorney at the law firm of McNair Law Firm, P.A. Copyright 2007 M. Lee Smith Publishers LLC.

View other news articles from September 2007