Successful business strategies are strong people strategies

successful business strategies are strong people strategies

For many CEOs, the cost of attrition alone can be enough to lose sleep over. Some studies say the average cost of replacing employees ranges from $70K to 1.5x their salary! In a 1000 person business with an 11% attrition rate, that’s a $4 million loss that you could avoid. But what if we said prioritising and investing both time and money into your recognition and reward strategy could decrease company turnover by 31%? Would you sit up and listen?

You might lack the time to go over the minute details of each HR initiative and how it’s going to keep your top talent from walking out the door, but what you do have is the prerogative to give someone in your team the autonomy, accountability, and budget to make people a priority for your business. Why do it?

Put simply, because your Business Strategy needs a strong People Strategy to succeed. Here are just a few examples of how it can work for your business.

Issue:

Getting employees on the same page during periods of change

What it looks like:

Employees haven’t bought into the company vision.
We’re going through a period of change and it’s hard to get people motivated during the journey.
We need to pivot and/or reprioritise – how do I make sure this change in direction is understood across the business?

How to use your people strategy to support your business strategy:

Use every opportunity to reinforce and retell the story (or stories) that illustrate where you’re company is headed, what you want to achieve, and who you’re impacting. Company meetings are the obvious, traditional channel and shouldn’t be overlooked, but communication platforms (e.g. blog posts, email newsletters, videos and posts on a company social site or recognition wall) are great ways to stay connected and keep that story (vision + purpose) front of mind each day.

The added benefit to using dedicated tech to link people to purpose is DATA. You’ll be able to see exactly who is/how many employees are logging in, reading and engaging with content. A dedicated recognition platform like Redii can also provide insight into which values are resonating across different teams or geographies, so you can see, at a glance, which teams or individuals need attention and support.

Issue:

Achieving productivity and collaboration with a physically distributed workforce

What it looks like:

People are working in silos and – they aren’t connecting or collaborating efficiently.
Productivity/growth remains low despite the introduction of new technology.

How to use your people strategy to support your business strategy:

In its Human Capital Trends Report 2014, Deloitte stresses that social media is changing the way we do business. Employees expect tools that enable immediate, two-way feedback. Platforms that incorporate chat and social media components (where employees can “like” or comment on messages) promotes transparency and open, proactive communication are worth your attention and investment, because it allows for a faster flow of information sharing, and sets the expectation that efficient, effective communication is a priority for your business.

Another way to do this is to support secondment or training programs that enable and encourage cross-departmental learning and collaboration. This not only allows you to keep the talent within your business, it addresses your employees’ need for learning, development and mastery (which is critical for keeping them engaged).

Want more tips on how to get your business ahead? Download our ebook Why Should I Care? How a well-designed employee recognition strategy can achieve big wins for CEOs, GMs, HR practitioners and People Leaders.