5 Reasons Why Developing An HR Strategy Is So Important

why developing an hr strategy is important

Few companies know this: Having an HR strategy can drive your business forward.

Many companies think an HR strategy is a strategy for your HR team. But unlike a marketing strategy which is created for your marketing team (or marketing and sales team) an HR strategy is a strategy for the whole company.

However, there is a problem with developing an HR strategy in-house; it’s a tedious task and costly endeavor. Not to mention, internal biases tend to sneak in and ruin the overall in-house HR strategy.

So how can you develop an effective HR strategy? The best way to do so is to outsource your HR strategy.

In this article, we’re going to focus on the benefits of developing HR strategies along with the top reasons to outsource your HR strategy.

What is an HR strategy?

what is an hr strategy

what is an hr strategy

An HR strategy is a plan that’s designed to support the entire company, set policies, manage communications, and ensure there’s an effective hierarchy and salary structure in place.

But creating an HR strategy isn’t an easy task. It’s actually quite long and takes months to build the strategy and implement it.

Getting your HR team to complete its regular tasks such as payroll, hiring, manpower planning, career development, and other tasks AND also develop an HR strategy is a sure-fire way to overload your team. Not to mention fail at all the above!

Why developing an HR strategy is important?

why developing an hr strategy is so important

why developing an hr strategy is so important

As you can see, having an HR strategy means smoother business operations. But what are the other benefits of having an HR strategy?

Here are a few of them:

1)   Better hiring

The first benefit of having a good HR strategy is having a better recruitment process.

With an HR strategy, your teams are aware of the hierarchy, salary structure, and more. They also have clear job descriptions for the roles they’re hiring along with an idea on how to evaluate candidates.

HR consultancies like Tawzef also give companies the opportunity to use different types psychometric tests on new and current candidates to see who is the better fit for an available role.

2)   Better employee retention

Whether businesses realize it or not, employee turnover is costly for companies of all sizes.
That’s why one of the top benefits of developing an effective HR strategy is increasing employee retention and keeping employees motivated, engaged, and happy.

3)   Conducting exit interviews

As mentioned, an HR strategy manages communications and supports the company as a whole. It enforces the idea of conducting interviews with employees leaving the company so that the HR team can understand their reasons for leaving and find ways to handle similar incidents in the future.

Of course, sometimes it’s out of the HR team’s hands why employees leave. But conducting exit interviews means HR and top management can get a hand on weaknesses and other issues that are hurting the company.

It also helps businesses keep up with market needs and trends.

4)   Clear salary structure

One of the most important factors candidates consider when joining a new company is the salary. Today’s job market is a fast-changing one.

To ensure that your company offers competitive salaries that are in-line with the market, you’ll need to explore or conduct salary surveys.

An effective HR strategy, especially one conducted by an HR outsourcing company, can help you get a clearer picture about the candidate needs, salaries, and more.

Now that we’ve covered the top benefits of developing an HR strategy, let’s explore the benefits of outsourcing your HR strategy.

Why you should outsource your HR strategy?

In HR, you can hire an executive or payroll specialist to manage basic company needs such as hiring and payroll. Or you can outsource one or more HR services to get maximum benefits.

Here are several reasons why you should consider outsourcing your HR needs to an HR consultancy firm, like Tawzef.

1)   It takes time to build the strategy

The process of developing an effective HR strategy is a time-consuming, long, and generally tedious process.

It takes months to develop a clear and effective strategy and more months to train your teams to follow and implement the strategy.

An HR consultancy firm can also train your internal HR personnel on how to review and track key performance indicators (KPIs) to ensure the HR strategy is effective and moving according to plan.

2)   Expertise required

One of the reasons businesses find it unreasonable – or undoable – to develop HR strategies in-house is because it requires a team of experienced HR professionals.

This expertise is hard to come by and costly to hire in-house. Meanwhile, HR consultancies offer this easily. They’re able to do the work for you and can train your team members to follow and commit to the HR strategy.

HR consultancies can easily follow up with your company on how the HR strategy is turning out and amend and tweak it as needed to suit the business and its objectives.

3)   HR strategies require major financial and talent resources 

You’ve probably noticed: To develop an HR strategy is a costly endeavor. Hiring a team to conduct your strategy can strain your finances.

And the larger your company, the more HR personnel you’ll need, which further strains your budget especially with project-based needs.

On the other hand, outsourcing your HR strategy means you get the years of expertise of various HR professionals in a single package without having to hire them in-house.

Think of an HR strategy as an advanced level or option of human resources.

To get the most out of it and fulfill your needs, your best option would be to hire an HR consultancy firm, like Tawzef, whose team ensures you’re getting top quality from day 1.

4)   Presence of in-house biases 

Aside from the above-mentioned downsides of attempting an HR strategy in-house, another problem that arises is that top management and HR team tend to be biased towards the company.

Meanwhile, outsourcing your HR strategy to a third-party like Tawzef means you don’t have to worry about that.

Even if your HR team tells you they’re unbiased, your employees won’t feel comfortable sharing negative information or problems that face them for fear of repercussions from their managers or from top management.

On the other hand, working with an external party, your employees and managers don’t have those fears. At the same time, the third party is not familiar with your employees on a one-to-one basis, unlike your HR executive or team, so they’re unbiased towards anyone.


5)   HR strategy questions may not be logic to managers

Last but certainly not least, one of the important aspects of an effective HR strategy is asking questions. Many business owners, top managers, and senior executives may not find logic to certain questions posed as part of the HR strategy information-gathering phase.

However, these questions form an essential part of tried-and-tested HR strategies.

Like the biases, which are usually unintentional by the way, top managers may not be willing to ask certain questions to begin with, resulting in a failed in-house HR strategy from the first step.

why you should outsource your hr strategy

why you should outsource your hr strategy


When it comes to outsourcing, there are many types of outsourcing in HR you may want to explore. You can outsource certain tasks like payroll and talent acquisition, or you can outsource entire departments like HR or accounting. You can even outsource your call center.

Or you can outsource a portion of your needs that would be too much hassle for your in-house team.

If you’re looking to develop HR strategy or outsource any other HR needs, or if you need a consultation about your overall business plan, get in touch with Tawzef. We’d be happy to help!

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