HR Strategy: 3 Signs of Misalignment with Business Strategy

Key Takeaways

Importance of HR-Business Strategic Alignment: A lack of alignment between HR strategy and business strategy can lead to decreased employee motivation and engagement, resulting in overall degraded performance. Integrating HR into strategic discussions from the outset is important for establishing consistent and aligned messaging with the company’s goals.

Communication and Understanding of Objectives: A disconnect between HR and other departments can lead to irrelevant training and recruitment, as well as ineffective talent management. A deep understanding of the company’s objectives and realities by HR allows for the definition of aligned strategies, optimizing recruitment, training, and skill development.

Promotion of Corporate Culture and Employee Engagement: HR plays a key role in defining and promoting corporate culture. By aligning HR strategy with the company’s values and objectives, necessary skills are anticipated and available, leading to clear communication, more engaged teams, and better overall organizational performance.

Introduction

Very often in companies, the Human Resources (HR) profession is perceived as a mere support function. Its role is limited to “workforce management,” and it is generally the last to be informed about the company’s overall strategy. HR managers learn about what has been decided by the executives without having participated in the discussions.

Subsequently, they are asked to find the right profiles to ensure the success of this strategy while trying to keep current employees motivated and engaged.

If everything goes as planned, well, it means the pre-defined strategy was excellent, so why change a winning team? On the other hand, if unfortunately, there is a small hitch and things don’t go exactly as planned, well, it’s of course, HR’s fault for not doing their job properly 😉

In this article, I propose a different perspective on the role of HR in relation to strategy.

HR strategy plays an essential role in the overall success of a company, potentially impacting the functioning of organizations and the effectiveness of teams.

Yes, you read that correctly.

HR is the engine that allows an organization to achieve its goals and thrive in a competitive environment.

By strategically aligning HR strategy with the company’s goals, organizations can optimize their growth and success potential.

Not really convinced?

Take a 5-minute ☕️ break and read this article!

Why Business Strategy and HR Strategy Must Go Hand in Hand

First, let’s be clear.

Most companies are convinced that their HR strategy is perfectly aligned with the company’s strategy! It’s obvious, right? 😉

So, instead of giving you a lecture on the benefits of aligning your HR strategy with the company’s (because if you’re reading this article, I assume you’re aware that it’s beneficial…), I propose approaching the topic from a different angle.

I will share three signs that should alert you to a possible (small) misalignment between your HR strategy and that of your organization.

And for those who stumbled upon this article and still wonder “But what do HR actually do?!”, here are some advantages of paying closer attention to this function and what it represents in your company:

• HR strategy helps recruit, develop, and retain the necessary talent to achieve the company’s goals.
• An effective HR strategy motivates and engages employees, resulting in better individual and collective performance.
• HR strategy plays an important role in defining and promoting corporate culture.
• An effective HR strategy helps prevent conflicts and disputes and manage risks related to employee health and safety.

So, let’s get started!

Here are three signs that could alert you. These signs are not exhaustive, but I think they are a good indicator to start your reflections…

1. Contradictory Objectives Between Business & HR

Of course, no one will tell you that your company’s objectives and those of HR are contradictory. After all, it’s very rare for employees to contradict the boss 😉. Employees and managers used to such contradictions manage very well to keep the business running smoothly.

Yet, you are taking two different paths, and this is reflected in the overall performance of your company.

If the objectives of the HR strategy are not aligned with those of the company, it can indicate a lack of communication or alignment. Generally, this is because the company’s strategy was defined without really including HR.

Consequence?

HR tries to define their strategy as a reflection of the company’s… on paper. In practice, implementation and actions may contradict each other.

Let’s take some examples to illustrate this.

If the company wants to increase its market share by launching a new product, but the HR strategy focuses on developing skills in areas unrelated to this new product.

Or, if the company aims for rapid growth to increase revenue, but the HR strategy focuses on cost reduction, contrary to the economic growth activity.

In these examples, HR efforts do not directly contribute to achieving the company’s objectives.

Are these examples too “simplistic” for you?

However, if you talk to employees from certain companies, you will realize that this happens more often than you think.

If HR had the opportunity to have a clear vision of the company’s goals, they could define an aligned strategy and, for example, identify the skills and talents needed to meet these goals.

This would allow, for example, to optimize recruitment, training, and skill development, and ensure that the right people are in the right positions, enhancing overall organizational efficiency and productivity.

Therefore, to avoid these divergences, HR should be integrated from the beginning into the process of defining the company’s strategy.

Turn your HR from a mere support service into a key strategic partner.

Indirect Signs

There are also other, more indirect signs that reveal a lack of alignment between the HR strategy and that of the company:

• A turnover significantly higher than the average in your industry, or difficulties in recruiting for key positions necessary to meet the company’s strategy.
• A significant lack of essential skills within the company and in key positions, as these skills have not been anticipated.

2. Isolation Between HR and the Rest of the Company

And this is noticeable because everyone moves at their own pace… Yet, it is important to progress at the same pace as the rest of the company.

Why?

Because when all teams move together towards common goals, it facilitates performance and the achievement of these goals.

For this, HR must perfectly understand the company’s goals and vision. This understanding requires close collaboration with other stakeholders in the organization. By working together, they can ensure that the company’s goals are clearly defined and guide decisions and actions in human resource management.

And so, if your HR department is isolated from the rest of the organization, it will be difficult to communicate…

When I talk about isolation, I’m not referring to the physical location of the HR department. For confidentiality reasons, it may be necessary to have dedicated premises for this service.

No. That’s not the kind of isolation I’m talking about.

An example:

When you talk to HR staff who are unaware of the products and services sold by the company or the context experienced by the employees of the company (yes, yes, I assure you, it’s possible). This can happen when support function employees consider that the company’s business does not concern them.

Result?

A total disconnection between the real needs of the company and the actions taken by HR.

This disconnection can manifest in several ways. For example, HR might focus on training that is not relevant to the key skills needed for the company’s growth. Or, during recruitment, they might favor profiles that do not correspond to the current market challenges simply because they are unaware of the new strategic directions.

And it’s not just a matter of training or recruitment.

A lack of knowledge about the business can also lead to ineffective talent management. HR might overlook the true potential of employees, fail to recognize emerging leaders, or fail to create motivating career plans aligned with the company’s ambitions.

To avoid these pitfalls, HR must be integrated into the core of the company’s activity.

This means they must not only understand the goals and strategies but also be in tune with the daily realities of their colleagues.

Participating in inter-departmental meetings and encouraging regular exchanges with other teams are ways to ensure that HR is not just a support service but a real engine of growth and success for the company.

3. Lack of Motivation and Engagement

A third revealing sign of a lack of alignment between HR strategy and the company’s strategy is the lack of employee motivation and engagement.

This phenomenon can often result from a mismatch between the values promoted internally and the image the company wishes to project. For example, a company might communicate its commitment to Corporate Social Responsibility (CSR) while having HR practices that do not promote inclusion or employee well-being. This contradiction between discourse and daily reality is unsettling for employees, who may feel a disconnect between the values displayed by the company and their experience on the ground.

Despite the poor image HR may have, this function is considered the voice of the company and the employees. Essentially, it bridges the gap between management and employees. And when HR communicates the company’s strategy to the teams, if this communication does not truly reflect the company’s strategy, there will be grumblings.

On one hand, the rumors will echo “They really take us for fools… We’ll just do the bare minimum and that’s it!” and on the other hand, “Why aren’t the employees following, the company’s stakes are simple to understand!”

And ultimately, what happens?

A lack of cohesion and team efficiency, and once again, it’s HR’s fault…

However, if your HR were involved from the beginning in your strategic discussions, you could jointly establish the key messages to convey to the teams.

Beyond the company’s strategy, HR plays an important role in defining and promoting your corporate culture. By working hand in hand with HR, you ensure that not only is the company’s strategy coherent with the disseminated culture and values but also that the skills needed for the success of this strategy are anticipated and thus available.

The consequence?

• Clear and coherent communication between management and HR.
• More engaged teams because the company’s strategy will be understood and in line with the vision.
• More efficient teams because key skill development will have been anticipated and employees prepared for these transformations.
• More motivated teams because they are involved in the company’s strategy.

This leads to improved overall company performance, where each employee understands their role and feels valued.

Ultimately…

An HR strategy aligned with the company’s goals is not just a “nice to have,” it’s imperative for the sustainable success of any organization. Ignoring the importance of this synergy is like trying to drive a car while leaving the engine idling. Yes, it moves, but not very far and certainly not very fast.

HR is not just there to fill out spreadsheets or organize team-building seminars. Their role is much more important: they are the silent architects of corporate culture, the guardians of employee engagement, and the talent strategists. By fully integrating them into the company’s strategic thinking, you transform this often underestimated function into a powerful lever for performance and innovation.

So, stop viewing them as just a support service and start seeing them for what they truly are: an essential strategic partner. And next time things don’t go as planned, maybe, just maybe, it won’t be HR’s fault 😉

Remember: a well-aligned company, where each employee understands their value and role within the organization, is a company ready to meet any challenge. Make your HR key players in this adventure and watch how it transforms not only your corporate culture but also your results.