28+ Sample Free HR Strategic Plan

What Is a HR Strategic Plan?

A HR strategic plan is a comprehensive plan that lays out the human resource development strategies of an organization or company. It can cover several aspects of HR including recruitment, compensation, benefits, and training. 

According to statistics published by G2, 83% of employers believe talent acquisition and retention is becoming a growing HR or hiring challenge. Other statistics project that around 66% of millennials are expected to leave their companies or organizations by 2020. As far as employee engagement is concerned, 66% of human resource employees say that engagement has increased in recent years. 

Tips For Forming a HR Strategic Plan

The content of a HR strategic plan will greatly depend on an organization’s goals because companies vary in manpower size, organizational structure, and core values. However, there are several useful tips that can help HR practitioners and professionals create more substantial and sustainable strategic plans. 

Introduce diversity. Aside from the traditional aspects of HR, it would also be good to introduce various strategies and initiatives that are outside the conventional way of doing things. In recent decades, the issue of diversity in the workplace has become increasingly heated. For companies and organizations that seek to grow and adapt to changing times, they cannot simply ignore or sweep the diversity issue under the rug. It must be confronted so it can be integrated into the very strategies and plans they put forth. An organization’s HR department can address this by reviewing and updating existing policies. For example, one way of addressing this is by reforming or refining a company’s hiring process to make it more inclusive. Address attrition. Talent acquisition and recruitment is a fundamental component of human resources. A HR strategic plan should be able to address recruitment failures and gaps and come up with appropriate solutions and initiatives. And aside from just the hiring process, retention and attrition are also key issues in talent management. As a HR group or department, there needs to be a clear direction when dealing with the problems surrounding these key issues. Why are employees leaving the company after only a few months? What has contributed to the company’s high turnover rates in recent years? What can be done to keep good talent from departing the organization? These are the types of questions that must be raised in a practical HR strategic plan. Focus on career development. Another crucial aspect of employee retention and engagement is professional development. A good HR strategic plan ought to be able to lay out plans for employees’ growth. One of the main reasons for low job satisfaction or poor engagement is the lack of growth and development. Employees want to be reassured that the company they work for cares about their professional career. Whether it is through sponsored training, career charting or mentorship programs, the role of HR is to make sure employees are constantly learning and gaining from their company. Without any HR initiative, allowing people to remain stagnant in a job is a sure way to push good employees out the door. Encourage team activities. Part of a HR strategic plan should always include programs or plans on how to keep employees engaged within the organization. HR’s job is not merely to keep track of payroll or to fill job vacancies, it is the department’s responsibility to take active part in the development and well-being of the company’s employees. An effective HR strategic plan should be able to come up with feasible initiatives that promote employee engagement. Initiatives such as team building sessions, company-wide events, intimate departmental gatherings, skills training, or even quarterly themed activities where everyone can partake of are just some of the possible strategies that can be incorporated in a HR strategic plan.

Importance of Having a HR Strategic Plan

Along with business plans and action plans, a HR strategic plan is one of the most basic plans that all organizations ought to prioritize. There are all kinds of reasons and benefits for having a HR strategic plan in place. The following examples below are just some of the primary reasons why HR strategic plans are important. 

Manpower is key. Regardless of industry, manpower is the most basic building block for any organization to run. Without people, businesses cannot operate and function. As the backbone of an organization, manpower should therefore be a top priority in a company’s decision-making and overall direction. Developing a HR strategic plan is one way of ensuring that employees’ needs and concerns are taken into account. In other words, creating strategies and tactics that would profoundly affect the people in the organization is reason enough to invest in a good HR plan. Whether it is the policies that guide employee conduct or initiatives that boost employee morale, these are all reinforced in a HR strategic plan. Preparation is essential. A main reason why having a HR strategic plan is important is because planning and preparation are necessary. Without having the proper rules and standards in place, there is a greater and higher risk of things going wayward. This does not mean that plans will always unfold the way people want or expect. But investing in the right preparation is having a sense of responsibility and diligence for the future. A HR strategic plan is forward-thinking and goal-oriented. It means taking responsibility for the direction of the organization and the welfare of its employees. Ownership is an excellent core value to have. When human resources or any department or team strives to put plans in place, it promotes ownership and accountability in the workplace. Talent management matters. Another reason why having a HR strategic plan is crucial is because skillful talent management matters. It is the company’s responsibility to look after their employees. This is not to say that the former should act as a babysitter to the latter. HR’s role is precisely to safeguard the welfare of the employees. This means creating a clear and fair code of conduct within the workplace, protecting employee rights, and maximizing the skills and potential of employees. Thus, talent management programs should be part of any HR strategic plan. There must be a clear direction of how the company intends to promote the welfare of its employees. It must also be specific and relevant to the times. For example, a skills training calendar can be incorporated in the HR strategic plan to promote higher productivity and engagement.

How to Create a HR Strategic Plan

To create a HR strategic plan, you need to have a thorough and comprehensive understanding of the needs of both the employer and the employees. If you opt not to start from scratch, using a ready-made template from the selection above will help you draft a plan faster. Simply choose a template that’s suited to your needs and follow the basic steps below.  

Step 1: Define the Goals

The first step is always setting the objectives. A HR strategic plan should be comprehensive and solution-oriented. And since human resources does not just cover one aspect, it is necessary for you and your team to prioritize which areas of HR need the most attention. A sense of urgency is just as important as discernment. Identify which issues take precedence over the others and align them to your goals. Ideally, the list of objectives should be specific and limited to only a few items. Avoid lengthy entries and try to narrow it down further by grouping similar objectives into one goal.     

Step 2: Develop Actions and Strategies

The meat of your strategic plan should be the action items and proposed strategies. Obviously, coming up with appropriate action items takes a considerable amount of discussion and brainstorming. Before finalizing any strategy, it is always best to consult other people in the HR team first. This is to ensure that all members are aligned in their goals or ideas. Your proposed strategies ought to address the goals and objectives stated earlier. The more concrete and specific they are, the better. It would also be wise to assign a point person for each action item to establish accountability and promote teamwork.     

Step 3: Establish a Timeline

The next step is assigning a timeline for your objectives to be realized. Establishing a timeframe for deliverables and key performance indicators is crucial to success. There must be a reasonable projection and future forecast in any strategic plan. Otherwise, there would be no reason to act on the goals right away. A sense of urgency must be present if productivity and efficiency are the goal. The format of your timeline may vary depending on your preference. The use of a Gantt chart is common in project management. But even a simple table or calendar will do; what’s important are the projected dates and other related data.      

Step 4: Track the Progress

Another key component in a HR strategic plan is a reliable monitoring tool. Once you have established the goals, action plans and its corresponding timeline, then there must also be a mechanism to track the progress of your strategic plan. This is to ensure that the objectives are being met and to gauge the success of the various action plans in place. A progress tracking tool can be anything from a simple sheet to a complex chart. The mechanism itself and its reliability as a measure of progress should be more important than its format. 


What should be included in an HR strategic plan?

A HR strategic plan can include several sections. Some of these key sections include a list of objectives, action items, proposed plans, a clear timeline, and a progress monitoring mechanism.

What are examples of HR strategies?

Some examples of HR strategies include employee engagement programs, corporate social responsibility initiatives, employee referral programs, comprehensive benefits package, mentoring programs, skills training, career charting and development, etc.

What are the 3 P’s of Human Resource Management?

According to Business Management Ideas, the three P’s of Human Resource Management or HRM are people, process, and performance.

Human Resources is an essential part of organizations. Without a sound or solid HR strategic plan, company culture can crumble and it might even negatively affect talent management and other organizational processes. Browse and select any sample template from above to start customizing your own strategic plan now!