DEI: Why is diversity and inclusion in the workplace important?
What is DEI? And why are diversity, equity, and inclusion important in your workplace? What are the benefits? And what does it mean for you and your colleagues? Find the answers here.
By CfL, opdated June 2024
The purpose of a strategy is to set the direction for a desired future. In business terms, it can be translated into two main objectives:
In broad terms, all strategy is business strategy, which can then be supported by a range of strategic initiatives and actions—often formulated and executed through support functions. These may include financing strategy, IT strategy, communication strategy, and… HR strategy.
The HR strategy must include goals and plans for how the company, in the upcoming strategic period, will attract and retain the right competencies—in the right quantity and quality, at the right price, in the right place, and at the right time.
Fundamentally, HR should focus its efforts on six areas:
The first step in the strategy process is to gain absolute clarity about the responsibilities of the HR department, how well HR is currently performing its tasks, and how HR contributes to value creation.
It is important to determine the extent to which HR, on one hand, meets the organization’s current needs and expectations, and on the other, how well the organization—viewed from an HR perspective—can follow and utilize the processes and management tools that the HR department provides.
Finally, the HR department must evaluate the systems and methods that support the HR function in the company. Such a strategic diagnosis can be carried out as a self-evaluation, through interviews with stakeholders, and/or by consulting with external advisors. The goal is to gather facts that can form the basis for the strategic work.
The second step in the strategy process is to look into the future:
The goal is to get a picture of what the business strategy will demand from the HR function in the coming years.
The third step is to define which elements of the business strategy require HR’s attention, to prioritize the 3–5 most critical challenges for HR right now, and to define the HR strategic goals along with corresponding action plans.
Here it is important to consider that in most companies HR is both a function and a department. An HR function is not only defined and executed by HR itself, but also by managers, legislation, collective agreements, external partners, and increasingly by the employees themselves.
Based on the business strategy, the most important task for the HR department is to select and prioritize the HR processes/services that best support the business strategy and to design, describe, and support typically the 7 to 9 most important ones. This means that, in close collaboration with strategic management, HR must set goals, rules, and frameworks for the function.
In the process of writing the HR strategy, involvement is extremely important – from above, laterally, and down through the organization. The HR strategy must be tested not only against the business strategy, but also to ensure that it reflects the company’s mission, vision, and values, the company’s management principles and behavior, the written or unwritten personnel policy, and, not least, the company’s brand and image.
The fourth step is to calibrate and design both the HR function and the HR department. This means that the HR department must enter into agreements with management regarding control and service levels. At the same time, HR must set goals for each HR process and define the roles and responsibilities of the HR department, managers, and external partners.
In this step, the HR department, together with top management, should also plan how, in the upcoming strategic period, the HR department will acquire and retain the right competencies—in the right quantity and quality, at the right price, in the right place, and at the right time. At the same time, HR must define the need for digital solutions and management tools within the company.
What is DEI? And why are diversity, equity, and inclusion important in your workplace? What are the benefits? And what does it mean for you and your colleagues? Find the answers here.
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