Strategic Human Resource Management (SHRM), which demonstrates the importance of HR to organizational success by coordinating HR practices with business objectives, has gained support from academics and HR professionals. There are several reasons why SHRM has gained traction:
1. Strong Business Case for SHRM
There aew solid evidences that a strategic approach to HRM contributes to higher productivity, better employee engagement, improved retention, and overall business performance. Organizations that integrate HR strategies with business objectives can develop a competitive advantage by ensuring they have the right talent, culture, and capabilities to meet their goals. Studies have linked SHRM to:
i) Increased financial performance
ii) Greater innovation and adaptability
iii) Enhanced employee satisfaction and retention
2. Academic and Professional Interest in SHRM
While some argue that HR professionals and academics have embraced SHRM out of self-interest, the reality is that SHRM provides legitimacy to HR as a critical business function. In the past, HR was often seen as an administrative or compliance-focused department. By promoting SHRM, HR professionals can position themselves as strategic business partners rather than just support staff.