As organizations change over time, their human resources department (HR) must also change to keep staffers happy and productive. According to business author John Bratton, strategic management became an integral part of businesses in the mid-1990s. Human resources adopted strategic thinking to evaluate present personnel needs and how they would change in the future.


Both the method and the amount of payments for employees are strategic issues for an HR department. A large enough compensation package will help to improve employee retention but it may also lead to a strained budget. Payment rewards employees for their past performance and it is an incentive for them to perform in the future. Payment must be matched with the beliefs and policies for the organization while remaining affordable. Some companies use flexible benefits packages while others make payment options more limited.


Successful companies are the result of placing employees in the right positions while giving them appropriate training. Training programs must be focused on clear objectives while remaining cost-effective. Managers must be well-informed of why certain types of training are needed and they must effectively convey that information to their subordinates. Even the strongest training program in the world with poor implementation and understanding will be a failure. Training must also be used to prepare employees to take over future vacancies in higher positions.


One of the major reasons for the existence of an HR department is to retain employees. An effective employee retention strategy keeps employees deeply satisfied in their work. Various factors like corporate culture, quality of life and professional development factor into how well a company performs in this area. If a company does not at some point focus on keeping their employees happy, they will almost definitely experience high turnover at some point.


Many intelligent workers enter the workforce every year out of college and graduate school. A company must have an enticing combination of incentives, pay and a strong message to make sure that it is desirable to potential future employees. An HR department must have a strategy in place for recruiting these employees. There must be a standard interview process in which the corporate culture, organization expectations and company goals are laid out for the interviewee. Companies can also fill positions using internal promotions which will require use of the training and compensation strategies.