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Why Your Company Desperately Needs a Strategic HR Plan, Even If You’re a Startup

HR Consulting

Strategic human resource planning is a tool to support the human resource and organizational goals established by your business. The tools, metrics, and action items outlined in your plan will allow you to help the business achieve its strategic goals while also aligning the HR function with those goals. 

If you’re still in the process of developing your strategic plan, don’t worry – Strategic HR planning is not a one-time event. It should be an ongoing process that is re-evaluated every 3-12 months based on your ongoing priorities and goals. Here’s why you need to get started on your strategic HR plan as soon as you can.

1. Forecasting Talent Requirements

Without a strategic plan in place, you won’t be able to accurately forecast talent needs, and you may find that you have too many or too few staff on board. That could result in client-facing gaps in service, employee burnout, and higher costs of business. Developing the plan will give you the insight you need to plan for future needs, and the forecast will help you determine the training you need to offer in order to meet those needs.

2. Avoiding Significant Legal Risks

Lack of strategic direction exposes your company to the risk of legal liability. For example, if you terminate an employee without an apparent reason, and they sue you because of it, the lack of a strategic HR plan could make it difficult to explain why the decision was made.

A strategic plan will help you anticipate growth and challenges so you can have a process in place to handle them. And if you identify and rectify issues early on, you’ll be able to improve employee retention, satisfaction, and productivity.

3. Developing Scalable Processes and Identifying the Right HR Tech Solution

A strategic plan will help you discover the most effective way to scale important HR processes, such as recruitment. You may see the need to streamline or automate your recruitment and onboarding process, which can help you attract and retain talent while saving time and money. Failing to implement scalable processes can lead to overworked employees and high turnover rates.

It’s also worth noting that with a strategic HR plan in place, you can avoid big mistakes that could cost you a lot of money. For example, implementing a payroll solution that doesn’t support your specific needs. You’ll have a better idea of what features and functionality your payroll solution should have before choosing a vendor.

4. Aligning HR with Company Vision & Values

Strategic HR planning ensures that HR is working in tandem with the business’ goals, enabling it to contribute to the value of the business instead of simply existing as an additional cost. Values should be infused into all employee initiatives, and these programs should also support the business’s strategic priorities. This is an incredible opportunity for businesses to develop a strong employer brand that your employees will be proud to promote.

Plus, an aligned HR function is much more likely to be successful in meeting the business’ strategic goals.

5. Improving Employee Engagement

Another critical role of HR is to help leaders keep their fingers on the pulse. Employee engagement and other pulse surveys should serve as the guiding light for HR leaders in developing their strategic plan year over year. The difference between an engaged, healthy workforce and low morale can be costing your company millions in lost productivity, unnecessary lawsuits, high turnover, and even experience reputational damage visible to clients and future hires. 

You can integrate solutions for the information gathered through your surveys to continually build trust and improve the Employee Experience (EX). Given that 70% of a company’s ability to retain its employees is determined by the relationship one has with their managers, It’s equally critical to develop your leaders who can help foster a people-friendly culture and reduce the number of workplace stressors. 


Strategic HR planning is a tool that is essential for businesses that want to grow and succeed over time. Without one in place, you will lack the capacity to achieve your business goals successfully. By using the strategic HR plan to guide your efforts, you will be able to identify key areas for improvement, and you will be able to develop a greater understanding of your people’s needs.

If you feel like your company is ready to start developing your own strategic HR plan, you’re going to need all the help you can get. POPS Enabled has the expertise to help your company develop a culture-rich and people-centric workplace that will push your company to new heights. Through digital HR transformation and scalable technology, we make all this possible. Contact us today to get started!

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