The underpinning social and economic reasons for HR and academics embracing SHRM (Strategic Human Resource Management) can be summarized as follows:
Social Reasons:
Globalization of Talent Competition:
The intensifying global competition among businesses has shifted the focus to talent acquisition. SHRM aligns HR practices with global talent needs, enabling organizations to attract, develop, and retain top talent from diverse backgrounds.
Changing Employee Values:
Modern employees prioritize personal growth, job satisfaction, and corporate culture. SHRM emphasizes employee development and work-life quality, addressing these values and fostering a positive work environment that enhances employee engagement and loyalty.
Corporate Social Responsibility:
As societal expectations for corporate responsibility grow, SHRM helps organizations meet these standards by integrating ethical practices, employee welfare, and environmental concerns into HR strategies.
Economic Reasons:
Enhancing Organizational Performance:
SHRM aligns HR activities with organizational goals, optimizing resource allocation and improving workforce productivity. This strategic approach contributes to higher performance and profitability.
Cost Efficiency:
By implementing SHRM, organizations can streamline HR processes, reducing costs associated with recruitment, training, and compensation. Effective talent management minimizes turnover and associated expenses, while performance-based rewards systems motivate employees, boosting productivity.
Sustainable Development:
SHRM focuses on long-term human capital planning and development, cultivating a skilled and adaptable workforce that supports organizational growth and sustainability amidst evolving market conditions.
In summary, the embrace of SHRM by HR professionals and academics is driven by both social and economic factors. Socially, it addresses the globalization of talent competition, changing employee values, and corporate social responsibility. Economically, SHRM enhances organizational performance, promotes cost efficiency, and supports sustainable development.