From administration to strategy: How to strengthen the HR role in the industrial company
1. Clear and anchored strategic HR plan
Link the HR function directly to the company’s goals
In an industrial company, it is often large production volumes, tough international competition, and rapid technological shifts that set the conditions. To meet these challenges, the HR strategy must be closely integrated with the company’s overall business strategy. This means, among other things, that the HR manager must work proactively to map upcoming competence needs based on expected technological investments, possible changes in production, and the company’s sustainability goals.
Ensure anchoring in the management team
By clearly showing how HR initiatives contribute to increased efficiency, reduced employee turnover, and a better working environment, the HR manager can increase their influence. In the industrial sector, where margins are often under pressure, the link between the right personnel strategy and production results becomes particularly clear. This makes it easier for the HR manager to gain support when new HR projects or change initiatives require funding or resources.
Make room for sustainability and diversity
Many industrial companies today have ambitious goals regarding climate impact, working environment, safety, and social responsibility. A strategic HR plan should therefore include measures that support a safe working environment (e.g. preventive initiatives within occupational health and safety) and promote diversity, which strengthens both innovation capacity and the company’s reputation as an employer.
2. Ensure data-driven decision-making
Leverage the power of HR data
Larger industrial companies often have extensive workforces, which generate large amounts of data on everything from sick leave and workplace injuries to competence profiles and employee turnover. When this data is handled and analysed in the right way, the HR manager can proactively predict bottlenecks, identify recruitment needs, and reduce risks of, for example, high employee turnover during peak seasons.
Implement or optimise HR systems (HRIS)
In an integrated HR system, you gather all HR processes and employee data with ISO 27001 security standards. There you can, for example, collect data for shift planning, competence matching, and compliance with labour law regulations. In industry, it is particularly important to have smooth systems for scheduling and time reporting, as employees often work in shifts or in teams with strong interdependencies. Digital solutions also facilitate compliance issues, not least regarding safety requirements and certifications.
Make fact-based decisions
By analysing personnel-related KPIs, the HR manager can demonstrate how investments in, for example, competence development or leadership training affect productivity and quality in production. This makes it easier to justify investments in personnel programmes to management and owners, as decisions are based on actual outcomes and forecasts rather than assumptions.
3. Strong and clear leadership
Leadership within the HR team
In an internal HR organisation, employees often face complex issues related to labour law, union cooperation, recruitment of specialists, and employee surveys. The HR manager therefore needs to lead and coach their team towards high specialist competence, while also ensuring that competencies complement each other. A clear vision and regular follow-up on both individual and shared goals create structure in what is otherwise a broad range of tasks.
Advisory and challenging towards managers
In industrial companies, production managers and line managers are often focused on achieving production targets. As an HR manager, one should support them in personnel-related matters, but also dare to challenge when decisions risk going against long-term strategies – for example, quick staffing solutions that may negatively impact working environment and well-being. A sounding board that bases recommendations on facts often gains greater respect in an industrial context. The HR manager can contribute to safer, higher-quality decisions by hiring managers by acting proactively and in advance evaluating and entering framework agreements with validated suppliers of search and recruitment services and with suppliers of interim solutions. Candidates for permanent employment and for interim assignments often have different goals with their career choices, and as an HR manager you should prioritise suppliers that are specialised – either in recruitment or in interim services. If the company has international subsidiaries, it is also important that the supplier of recruitment assignments or interim services has an established delivery capability regardless of which country may become relevant.
Interaction with the management team
By raising the HR perspective in the same way as the CFO raises financial issues or the production manager raises technical issues, the HR manager shows how employee matters and work culture have a direct impact on operational reliability, quality, and profitability. In larger industrial companies with many international contacts, the HR manager can also assist in the integration of new acquisitions, mergers, or foreign subsidiaries – which requires leadership in change management.
4. Delegate, specialise, and free up own time
Identify what can be outsourced
An HR manager who is stuck in administration and operational tasks loses valuable time that could have been used for strategic work. In industry, for example, recruitment of temporary labour for specific projects or payroll administration with many shift agreements may be suitable either for internal specialisation (a department within HR) or for external outsourcing (consultants or agencies).
Create self-service and digital processes
Much of the repetitive work around, for example, leave, shift schedules, and simple questions about employment conditions can be digitalised. When employees can find answers themselves and manage certain matters, the burden on HR is reduced. This is particularly important in industrial companies where staff are spread across several shifts and may not always have access to a computer during working hours. A mobile-adapted solution can be crucial for freeing up HR resources.
Train line managers
By giving line managers basic knowledge in personnel matters and recruitment routines, a large part of daily HR work can be handled locally, close to production. The HR manager should, however, maintain support and coordination so that line managers are not left alone with more difficult issues, such as conflict management or major organisational changes.
5. Cooperate with unions and other stakeholders
Proactive union cooperation
In industrial companies with collective agreements and strong union representation, a constructive relationship with union representatives is crucial for being able to drive changes without time-consuming conflicts. The HR manager should have regular check-ins, open channels for dialogue, and preferably involve unions early when new processes or reorganisations are planned.
Work environment and safety issues
A large industrial company places high demands on work environment and safety, and unions are often active in matters related to safety representatives. By offering joint training initiatives and jointly developing risk analyses, the HR function can ensure a safe working environment. This builds trust and often streamlines production flow, as accidents and sick leave decrease.
Build relationships with external actors
In addition to union contacts, external partners may include recruitment companies, interim providers, training organisations, and universities offering technical competence. In an industrial company working with, for example, advanced robotics or system development, cooperation with specialised educators can be crucial for securing competence supply in the long term.
6. Invest in own competence development and environmental scanning
Stay up to date with technological development
The industrial sector is changing rapidly, not least through Industry 4.0, automation, and AI. An HR manager who lacks understanding of these technologies risks underestimating competence needs or discovering new recruitment challenges too late. By following industry seminars and maintaining close contact with construction and production managers, the HR manager can better plan competence development and recruitment strategies.
Deepen knowledge in labour law and collective agreements
The Swedish industrial sector is shaped by strong union traditions and detailed collective agreements. To effectively navigate negotiations and mediations, it is essential that the HR manager has a solid foundation in applicable laws and agreements. This also strengthens the managerial role in dialogue with both employees and union parties.
Focus on sustainability and diversity
Young talents and qualified labour increasingly look at the company’s values and sustainability work when choosing an employer. Competence in D&I (Diversity & Inclusion) and sustainability issues not only strengthens the company’s brand but also helps attract new employees who can take the industrial company into the future.
Concluding reflection
In a larger industrial company, the HR manager’s role is characterised by requirements for a clear link to the business strategy, the ability to handle extensive data, and a complex interaction with unions as well as a production environment that often requires specialised competence. By laying the foundation with a strong, strategic HR plan and data-driven methods, the HR manager can act as a key player in the company’s development. This also requires active leadership both within the HR organisation itself and towards other managers, clear delegation of operational tasks, and long-term cooperation with unions and external partners. Finally, continuous competence development is a prerequisite for the HR manager to be able to meet new demands within technology, labour law, and sustainability. With the right preparation and focus, the HR manager can effectively lead the company’s most important resource – people – into a future where industry and innovation go hand in hand.
