The biggest waste of organizational resources, both in terms of time and dollars, is hiring the wrong employees, according to a survey conducted by Harvard Business Review (HBR). The logic makes sense. When organizations hire the wrong individuals:
- Managers spend more time monitoring and correcting poor performance (versus coaching and recognizing good performance).
- The company can lose their recruiting, onboarding, training, and development investment.
- The operation has to cover for lost productivity, both during the time that the employee is working for the company and while HR is looking for their replacement.
Essentially, when companies hire the wrong employees, they must shift resources from moving forward to making sure nothing goes wrong. It's that shift from being proactive to reactive that hurts performance and the bottom-line.
If organizations want to remain competitive, they have to make sure that the talent decisions they make are in alignment with the business strategy. And talent decisions means more than simply hiring. While the HBR article references hiring, imagine the organizational impact of hiring the right person and not giving them the tools to be successful. Either way, it slows organizational momentum.
Aligning talent strategy and business strategy
Here are four human resources activities that need clear alignment with business strategy:
- Talent Acquisition: Employees are the difference in any organization. They create and innovate ideas for the company, build products to sell, service customers, and plan for the future. Organizations have to consider the talent they have and will need in order to thrive and survive in the marketplace.
- Goals: Once employees are hired, they need to understand performance expectations and set relevant goals. An employee's goals should be congruent with their department and the company. As an employee accomplishes their goals, the organization moves closer to achieving their strategy.
- Performance Management: Employees need regular, specific, timely feedback to perform well. Organizations with a culture that supports performance coaching realize 13 percent stronger business results, according to Bersin by Deloitte.
- Learning and Development (L&D): Business strategy must align with two core activities in L&D. Initially, employee onboarding is the first impression new hires receive. It needs to show employees how their work connects with the organization. Next, development activities should prepare employees for their future role with the organization (which implies there's a future strategy).
Human resources professionals play a major role in bringing the talent and business strategies together. They are in a unique position to lead the discussion. In the Society for Human Resource Management (SHRM) report, New Talent Landscape: Recruiting Difficult and Skills Shortages, over half of the professionals surveyed reported challenges finding and retaining talent. It's never been more important to make sure the resources spent on sourcing, engaging, and keeping talent are focused in the right direction.
Learn more about the connection between talent and business strategies
I hope you'll join me during Halogen Software's TalentSpace Live conference for a discussion about connecting talent and business strategies. The event is being held May 1-4, 2017 in Scottsdale, Arizona. I'm really looking forward to learning and sharing how HR is bringing out the best in companies.