Linking your company's human resources strategy to your overall business strategy is one of the best business decisions you can make. The primary advantage of connecting these two strategies is the competitive advantage you gain by making sure the most qualified people are assigned to critical business functions. The result of this competitive advantage is higher revenues and profitability.

Sustainable Advantage

Business owners realize that rapid change in the marketplace has created the need make sure today's products are not obsolete tomorrow. Your company's ability to adjust to change in the marketplace is directly related to its ability to develop HR strategies that support your competitive advantage. Strategies that enhance your ability to retain the best-qualified employees include incentive pay, competitive wages, paid training opportunities, professional development and promotion from within the company.

Sustainable Revenues

Regardless of whether your company is a manufacturer, a service provider or a retail outlet, your primary business strategy is designed to increase revenues and profitability over time. Consistent growth of your cash flow is directly related to the ability of your employees to satisfy the needs and demands of your customers. As an example, if you cannot keep well-qualified people working on the assembly line, you may not be able to bring products to the marketplace of sufficient quality or quantity to meet customer demand.

Strategic Connection

Successful linking of HR and business strategies is evidenced when HR strategy becomes a main driver of business strategy. This is evidenced when your company's commitment to the well-being of your people is at the top of every business decision made. For example, a retailer can demonstrate its commitment to employees when it must close some of its stores in response to change in the marketplace and it makes every effort to reduce any negative impact the closings have on its employees.

Optimizing Results

Business realities of the 21st century are forcing many companies to find ways to accomplish more with fewer resources. This reality is evidenced when business downsizing forces employees to assume increased responsibility because fewer people are available to accomplish necessary business functions. In order to make optimal use of your company's employees, while avoiding burnout from overwhelming workloads, the HR and business strategies must come together to find ways to improve conditions for employees, such as restructuring business functions and employee benefits that significantly increase the value of continued employment with your company.