What if your workforce strategy were the reason your business fell behind — or surged ahead? In an era where skills become obsolete faster than ever, companies that align talent strategy with business goals don’t just survive — they outperform competitors.

According to McKinsey, companies that integrate both people and performance at the center of their business strategy are more likely to see higher total shareholder returns than their competitors who only emphasize people or performance. Yet, many HR leaders struggle to bridge the gap between talent strategy and business objectives, limiting their ability to drive meaningful impact.

Success requires more than just filling roles — it demands alignment between talent and business priorities, proactive workforce planning, and ongoing development to meet future demands. HR leaders have a unique opportunity to sit at the table, advocate for talent-driven strategies, and leverage workplace insights to shape business growth.

This guide provides HR executives with a structured approach to optimizing talent responsibly and effectively, strengthening HR’s role as a strategic partner, and ensuring organizations have the workforce needed to thrive in an ever-changing environment.

Step 1: Create Alignment

Talent optimization starts with aligning workforce strategy to business priorities. When done well, it helps ensure you have the right people in the right roles to meet business objectives, close skills gaps, and gain a competitive edge through innovative practices, according to Alison Tripp, a talent acquisition leader at DPR Construction. “Talent optimization also helps you stay ahead of market shifts, boost employee engagement by aligning individual and organizational goals, and build long-term sustainability by investing in your people,” Tripp added.

For example, if an organization shifts its business model to focus on new products or services requiring specialized skills, but talent teams continue hiring based on past needs, the business risks missing key opportunities or scrambling to fill roles reactively. When you embed talent into business strategy, talent teams can proactively build pipelines and provide the workforce needed to drive success.

Be in the Room Where Decisions Are Made

Tripp speaks up in meetings when talent strategy is involved, but she also sits in on many meetings just to learn. Doing so gets HR out of a traditionally siloed department, sends a message that HR’s perspective matters, and supports HR’s position as a key business partner. At a time when the vast majority (89%) of CEOs believe CHROs should play a central role in driving long-term profitable growth, yet relatively few (45%) create the conditions for them to do so, HR leaders can take the lead and ensure they’re getting the perspective needed to help shape strategic decisions.

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