What are HR strategies and why do they matter?
According to Gartner: “HR strategy defines which HR and workforce practices and activities to pursue and improve to deliver outcomes that will drive enterprise business goals.” While they vary slightly per company, effective HR strategies are more than just operational necessities—they are vital to aligning human capital with key business objectives.
In Singapore, the rapid evolution and increasing complexity of employment regulations present significant challenges for businesses, demanding heightened vigilance and proactive adaptation to mitigate risks and ensure compliance. Inadequate HR strategies may lead to companies failing to observe employment laws, leading to severe financial penalties, legal actions, and most damaging, reputational harm.
To mitigate some of these risks, companies should conduct HR audits to ensure they are proactive. These audits form the backbone of proactive HR management and can identify inefficiencies, unlock opportunities to boost employee engagement, streamline processes, and drive measurable value. A more agile, compliant, and resilient organisation that champions workplace flexibility and is well-equipped to maintain a competitive edge in an increasingly complex business environment.
This guide explores the essentials of HR strategy, why it’s critical in today’s modern corporate landscape, and how businesses can successfully implement it. Explore more on this critical topic and more through the additional resources linked throughout this page.
How to attract and retain the best talent
Gone are the days when a competitive salary and a company laptop were the only items on a candidate’s wish list for the perfect job. Future new hires want to feel connected to their business’s mission, their team and boss, have the option for upskilling and have clarity around their performance. As the war for talent rages on, businesses must ensure they cultivate a workplace culture that champions diversity, upskilling and employee alignment with business goals.
Building an effective talent pipeline
While HR leaders face significant challenges, this rapid movement also presents a promising and unique opportunity: companies that are able to create a strong value proposition now have access to a larger pool of quality candidates than ever before.
To begin, businesses should redefine optimal candidate profiles to focus on essential skills and attributes, broadening candidate pools beyond traditional criteria. HR leaders should also explore non-traditional channels like educational partnerships, social media, and flexible work arrangements to expand their reach. Armed with these outlined strategies, it won’t be easy but businesses can win the talent war. Technology can also be a game-changer in the war over talent. Businesses can leverage a growing array of talent acquisition tools to streamline hiring, enhance candidate experience, and make data-driven decisions.
Why employee retention is just as important as hiring
Employee retention is key in not only fostering team morale and maintaining productivity but also attracting new hires. Retention of desirable employees can ensure operational excellence, maintain company knowledge unique to each employee and ultimately, support business profitability.
Yet, employee retention takes more than a yearly salary increase. A healthy workplace culture that prioritises employee health is key, as is acknowledging that individual employees require unique job benefits. Flexible work arrangements, fostering social belonging, and promoting a culture supporting mental health, all are crucial for talent acquisition and retention. Additionally, employee value propositions (EVPs) are now vital for attracting and retaining talent in a tight labour market.
The role of diversity, equity, and inclusion in HR
Inclusive hiring must always be at the heart of an HR team’s hiring strategy. The benefits of cultivating a diverse, equitable and inclusive culture are far-reaching and include a diverse marketplace of ideas and backgrounds that enrich your business and attract and keep top talent once hired.
Managing risk in HR: what you need to know
When building a team, it is critical that HR mitigate risk, requiring a proactive approach to protect your organisation and workforce. Internal checks and processes like background screening and building a comprehensive risk management plan are essential to help address workforce vulnerabilities. Additionally, staying vigilant against compliance issues and internal fraud safeguards both the company’s reputation and internal operations.
Why background screening is a must for employers
Our guide to background screening outlines why it is a critical practice for employers, highlighting this process can ensure compliance, mitigate risks, and improve the quality of hires. In Singapore, the recent introduction of the Complementarity Assessment Framework (COMPASS) has made background verification even more vital. With the requirement for employers to verify educational qualifications for Employment Pass (EP) applications, thorough background checks are now not just a best practice but a compliance necessity, making pre-employment checks critical for foreign employment.
Complementing this is the Monetary Authority of Singapore’s (MAS) “fit and proper” guidelines and Individual Accountability and Conduct (IAC) guidelines, which accentuate integrity, accountability, and professional competence. Together, these frameworks create a robust system where thorough background checks are critical not only for regulatory compliance but also for maintaining high standards in employment practices.
Along with background checks, comprehensive pre-employment screenings should also be implemented.
How to build a risk management plan for your workforce
HR leaders must adapt to the ongoing change the department is experiencing and ensure their risk management is future-proof. Risk management policies are crucial for identifying and mitigating risks, with best practices including conducting risk assessments, establishing comprehensive frameworks, and regularly reviewing and updating policies to ensure resilience.
Leaders safeguard their businesses from various types of business risks, including extreme weather, cyber threats, compliance challenges, financial fluctuations, reputational damage, geopolitical tensions, and hiring missteps that can result in fraud.
Avoiding compliance issues and internal fraud
By reinforcing compliance protocols and enhancing risk management frameworks, this practice safeguards organisations against internal vulnerabilities, ensuring operational integrity and regulatory adherence. Ensuring compliance must remain a top priority for business, especially in relation to monitoring existing employees.
Why? Internal fraud is becoming more prevalent, requiring leaders to prepare and plan to stop it before it starts. Businesses can prevent internal fraud through strong internal risk cultures, regular audits, data controls, ethics hotlines, and robust employee screening processes.
Strategies for modern workplaces
While today’s modern workplace continues to evolve, businesses must ensure they have an HR strategic approach that is agile and adjusts to the demands of tomorrow. Businesses can thrive in today’s dynamic environment by harnessing the power of HR technology to drive productivity and resilience. They must also ensure they are hybrid-ready to ensure their organisation is prepared for the future of work.
Adapting to hybrid and remote work
Hybrid work brings challenges like cybersecurity, fraud, loss of company culture, health, and process risks, requiring proactive strategies to enhance security, employee well-being, and risk management. It’s critical to know the top risks of hybrid work and although they are significant, they must be addressed because hybrid working is the new normal in terms of the modern workplace. We also recommend that leaders build an optimised hybrid work model.
Leveraging HR technology to stay ahead
Investing in HR technology is crucial for businesses to stay competitive. By transforming recruitment processes and enhancing talent acquisition strategies, businesses can effectively navigate the evolving HR tech landscape, enabling companies to streamline operations, improve workforce management, and achieve long-term growth.
Future-proofing your HR department
Around the world and in Singapore, businesses are grappling with a constantly changing compliance and HR landscape. In order to thrive, HR leaders must cultivate a culture of learning to future-proof their business, implementing strategies that foster resilience and agility in the face of uncertainty.
What makes a great HR leader in today’s world?
Today, a great HR leader surpasses their peers by leveraging innovation and adapting to evolving trends and requirements. HR roles of the future may evolve but leaders must remember to continue to combine AI with human skill. Additionally, they should prioritise strategies to develop human skills to keep pace with AI’s future demands and in a way that fosters trust, empathy, and collaboration within teams.
The HR trends you can’t afford to ignore
HR trends continue to change with the times but staying competitive requires businesses to address key HR trends like flexible work models, prioritising employee mental health, and leveraging HR technology. HR leaders must also focus on building a workforce with future-ready skills and adaptability to flexible work models. Equally important is fostering a positive mental health environment to ensure employee well-being and productivity in an evolving workplace.
Final thoughts: building an effective HR strategy
Effective HR strategies are essential for aligning talent with business goals, fostering resilience, and maintaining compliance in an evolving workplace. By prioritising workforce development, employee well-being, and risk management, companies can stay competitive and future-ready.
Are you ready to supercharge your HR strategy or want to learn more? Learn more from the content we shared above. You can also download our MOM Employment Pass Best Practice Guide to learn more and visit our screening services page to ensure your hiring practices are compliant and secure.
