The Human Resources Strategy

Navigating Toward Strength In Performance

White maze design with blue arrow showing successful path.

Like any business-related strategy, the purpose of the Human Resources strategy is to help an organization make meaningful progress toward achieving an end state or goal. Over time, I’ve found that many small businesses partner with a payroll provider to ensure their people are paid properly and away they go. “But why would you need anything more?”, you might ask. The fact is that the long-term future and success of your organization is dependent on the performance of your people...even more than your products or services. 

 

The Human Resource strategy is your overall plan for managing your human capital and aligning it with your business activities. It sets the direction for all of the key functional areas of HR, including organizational design, compensation, benefits, manpower planning, talent acquisition, on-boarding, training and development, performance management, employee relations, succession planning and off-boarding. The strategy also serves as the foundation for policy and procedure development and risk management efforts. All of these components serve one purpose… to move you closer toward your end goal of growing your business. 

 

The starting point for any HR strategy should be the overall business strategy. Most annual business plans focus on five to seven key elements of the business where there’s a desire to drive improvement. This is in addition to the annual sales and revenue targets. Those objectives will often be impacted by market conditions, sales, operating conditions, supply chain, etc. But they will also be impacted by Human Resource practices, the employment market, the competency level of your team, the business culture, the availability of resources and much more. 

 

Advances in team performance rarely happen overnight. It takes time and focused energy to find the right talent, align the right resources, create training and development experiences, ensure that procedures are identified and outlined and create the underlying structures and systems that keep all of it running. Left to chance, the results will be moderately effective at best. Business success happens when people do the right things the right way. The HR strategy is a roadmap that keeps the focus on the “right things” that will move the business forward. 

 

In preparing your HR strategy, some of the key questions that you may want to address are as follows:

  • What are the connection points between your HR function and your company’s P&L?
  • What are the key operational initiatives and how does HR need to better support them going forward?
  • Is the organization structured properly to support your next phase of growth? Do you have the right people in the right seats with the right skill sets? Will they still be right in two years?
  • Is there a clear vision in place for the next three years and, if so, how well is that vision being communicated down through the organization?
  • Do you have an employee handbook in place along with policies and procedures for your day-to-day business? (HINT: This is where traction is most often gained.) Does it present the company’s mission and values?
  • Is there an intentional focus on articulating and designing the culture and other organizational dimensions that are going to propel your team forward? (HINT: This will have a significant impact on your ability to retain your top performers.)
  • Are all weekly transactional processes working effectively (payroll, recruiting, benefits administration, etc.)?
  • Do you understand your current top three risks in your HR practice and are you working to address them?
  • Have you created job descriptions for all positions?

 

These are just a few of the questions that should be considered each year and really cover the basics. Creating an effective HR strategy does not have to be difficult and it doesn’t have to monopolize your time. It’s a matter of using the right information to create incremental changes that can pay big dividends in the future.

Brian Wallace • August 2, 2022
By Brian Wallace April 29, 2026
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By Brian Wallace April 29, 2026
Let’s address the uncomfortable truth: Most leaders already know what they should be doing. They just don’t do it consistently. Not because they’re incapable - but because something is working against them. What’s Really Holding Leaders Back? It’s not a lack of awareness. It’s a combination of three forces that quietly shape behavior: 1. Success Has Trained Them to Stay the Same Leaders are promoted because they deliver results. So they double down on what got them there: solving problems themselves moving quickly by making decisions solo stepping in when things go sideways The problem? Those behaviors don’t scale. But letting go of them feels risky. So they don’t. 2. Short-Term Pressure Overrides Long-Term Discipline In theory, leaders know they should: coach instead of direct develop instead of fix empower instead of control But in reality? Deadlines hit. Clients escalate. Revenue matters. So they revert to speed and control because it’s faster right now. And just like that, long-term leadership development loses to short-term execution pressure. 3. The Organization Quietly Rewards the Wrong Behavior Watch closely and you’ll see it - the leader who “jumps in and saves the day” gets praised. Or the leader who builds a self-sufficient team gets overlooked. Or perhaps the leader who avoids conflict keeps the peace and avoids backlash. Organizations say they want leadership excellence. But their reward systems often reinforce the opposite. Why This Matters More Than You Think When leaders don’t change: their teams don’t grow decision-making stays centralized innovation slows burnout increases at the top And eventually, the business hits a ceiling that no strategy can fix. The Real Work of Leadership Development If you want leaders to change, you have to change the environment around them. That means: redefining what “good leadership” looks like aligning incentives with the behaviors you want creating consequences for avoiding leadership responsibilities Because people don’t rise to expectations. They rise to what the system reinforces .
Executive team sitting around a conference table.
By Brian Wallace April 29, 2026
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