Create Competitive Advantages Through Human Resource Strategies

 

One of the key success factors of high-performing organizations is giving priority to their people. Traditionally, competitive advantage was gained through factors such as production capacities, research laboratories, financial resources, distribution channels, and economies of scale. Though these factors are still relevant but they are not sufficient for success in today’s business world. It is commonly acknowledged that people are the key assets in the new world market and that all other assets are nothing more than commodities that can be purchased at market prices, but only the human asset has the potential to learn, grow, and contribute (Dr. Jac Fitzenz, 1995).

HR strategies can help companies attract and retain top talent, develop a strong culture, and boost employee productivity and engagement.

By investing in employee development, creating a positive work environment, recognizing and rewarding employees, and measuring and tracking HR metrics, companies can use HR strategies to create competitive advantages.

 

V Skills Certified: Human Resource based Competitive Advantage

Here are a few tips on how to create competitive advantages through HR strategies:

• Align HR strategy with business strategy.

The first step is to ensure that your HR strategy is aligned with your overall business strategy. What are your company's goals and objectives? What kind of talent do you need to achieve these goals? Once you understand your business needs, you can develop HR strategies that will help you meet those needs.

• Invest in employee development.

Investing in employee development is one of the best methods to get a competitive edge. When employees feel like they are constantly learning and growing, they are more likely to be engaged and productive. Employee development can be funded by tuition reimbursement, mentorship programs, training initiatives, etc.

• Create a positive work environment.

A positive work environment is essential to attract and retain top talent. Employees want to work for companies where they feel valued and respected. You can create a positive work environment by offering competitive salaries and benefits, creating opportunities for advancement, and fostering a culture of collaboration and respect.

• Recognize and reward employees.

Employees want to feel appreciated for their hard work. You can recognize and reward employees for their achievements through performance reviews, bonuses, and employee recognition programs.

• Measure and track HR metrics.

Measuring and monitoring HR metrics is crucial for determining what is and is not effective. Employee engagement, employee satisfaction, and employee turnover are a few important HR KPIs to monitor.

A company can attract and retain top talent, boost employee morale and productivity, and drive innovation by creating a culture of diversity and inclusion. By providing opportunities for advancement, the employees will be motivated and engaged, which makes them more likely to stay with the company. It will make employees believe that they have opportunities for advancement and career development. These will help the company to gain competitive advantages and drive to success.

References

Deloitte, 2009, Creating value through HRb [Online], Available from https://www2.deloitte.com/content/dam/Deloitte/de/Documents/human-capital/creating-value-through-hr.pdf,  Accessed 28^th Oct 2023.

Patrick M. Wright. Gary C McMahan and Abagail McWilttams, 1994, Human resources and sustained competitive advantage: a resource-based perspective [Online], Available from: https://www.researchgate.net/publication/239667389_Human_resources_and_sustained_competitive_advantage_A_resource-based_perspective, Accessed 28^th Oct 2023.

Scholley Bubenik, 2019, Can HR Strategies Create A Competitive Advantage For Your Company? [Online], Available from: https://www.forbes.com/sites/scholleybubenik/2019/02/18/can-hr-strategies-create-a-competitive-advantage-for-your-company/?sh=fdf2b8158563, Accessed 28^th Oct 2023.

V Skills Certified [Online], Available from: https://www.vskills.in/certification/blog/human-resource-based-competitive-advantage/, Accessed 28^th Oct 2023.

William S. Brown, 2021, Strategic Human Resource Management for Competitive Advantage [Online], Available from: (PDF) Strategic Human Resource Management for Competitive Advantage (researchgate.net), Accessed 28^th Oct 2023.