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How to Align Your Human Resource Plan With Organizational Strategy

Earning a Master of Business Administration (MBA) is an investment, but the payoff can be significant. New MBA hires enjoy a median starting salary of $115,000, according to GMAC’s 2022 Corporate Recruiters Survey. An MBA with an emphasis in Human Resources (HR) Management may support even stronger earning potential. According to the U.S. Bureau of Labor Statistics (BLS), HR managers earn a median annual salary of $126,230, with the top 10% earning more than $208,000.

Business and HR strategy go hand in hand in achieving organizational objectives. After all, employees are a company’s greatest asset. A program such as the online MBA with an emphasis in Human Resources Management from the University of West Florida (UWF) prepares graduates with business and HR expertise for strategic leadership opportunities.

How Do Business Professionals Align Talent Management With Organizational Goals?

HR management has evolved from the strictly administrative “personnel” department it once was to the strategic element in organizations today. Strategic HR managers can proactively align talent initiatives such as recruiting, hiring, training and development with business objectives to help their employees and organizations thrive.

Gallup research confirms what strategic HR professionals know: engaged employees are good for business. Gallup studies show that highly engaged employees are linked to numerous key performance indicators, with gains that include:

  • An 81% difference in absenteeism
  • A 14% difference in productivity
  • A 10% difference in customer ratings
  • An 18% difference in sales
  • A 23% difference in profitability

Despite evidence linking employee engagement to business outcomes, Gallup research shows that only 35% of employees report feeling engaged in the workplace, creating high-impact opportunities for HR professionals with the skills to align HR plans with business strategy. As just one example, leaders at all levels of an organization need to understand what motivates employees.

For instance, take compensation: a core HR function. A substantial percentage of a company’s revenue goes toward payroll, and, according to Deloitte, 74% of CFOs expect talent costs to rise significantly in the post-pandemic labor market. In addition to people skills, HR managers can use broad business skills to partner with their organization’s executives and align compensation strategies with business goals.

Lucidchart notes the following additional areas where strategic HR plans can help meet long-term business goals:

  • Employee development, such as supporting employees to build new skills and adapt to evolving workplace needs (like abilities in leadership, project management, data analysis or another area)
  • Performance reviews, opportunities to help employees connect more closely to the company’s purpose and develop an achievable path to career growth — both of which can enhance engagement and reduce costly turnover
  • Change management, given that HR is in the best position to recognize how business strategies affect employees and communicate changes
  • Data-driven decision-making, such as using predictive analytics to identify employees at risk of leaving and improve retention strategies

How Can an MBA in HR Management Prepare HR Leaders as Strategic Partners?

A Fast Company article highlights the value of HR professionals with a strong business background: “HR leaders now need a strong grasp of their organizations’ business model and market strategy, industry dynamics and competitive landscape, and how all those components impact human capital — from hiring and performance to diversity and inclusion.”

UWF’s online MBA with an emphasis in Human Resource Management program prepares graduates to integrate HR planning with organizational strategy to achieve long-term business objectives. Coursework builds students’ knowledge in accounting, financial management, analytics, marketing and other core business functions — as well as the HR skills that can set graduates apart.

For example, the Strategic Issues in Human Resources Management course emphasizes the practical use of HR management principles in leveraging the workforce to achieve organizational goals. UWF’s program also prepares graduates with an advanced understanding of HR functions such as:

  • Establishing effective compensation and benefits systems
  • Developing effective recruitment and selection processes
  • Managing human capital for optimal performance

If you aspire to strategic leadership positions in HR — such as HR manager, vice president of HR, director of employee experience and chief HR officer — UWF’s online MBA with an emphasis in Human Resource Management program can prepare you with the specialized skill set to gain an advantage in today’s job market.

Learn more about UWF’s online MBA with an emphasis in Human Resource Management program.

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