Companies are increasingly aware that their greatest asset is their human capital. For this reason, the department in charge of recruiting, retaining, and developing talent must have the best tools to ensure the long-term success of the organisation.
In this context, the SWOT Analysis in HR emerges as a powerful tool that allows us to analyse the strengths and weaknesses of the area simply and objectively.
A SWOT analysis is also an opportunity for HR Managers to involve the whole team in identifying areas for improvement in the department and to work on them actively. By including the team, not only does it improve interpersonal relations by making them feel that their opinion matters, but it also allows them to obtain multiple points of view, which are essential to provide valuable information for the construction of the diagnosis.
What is SWOT Analysis in HR?
SWOT is an acronym that refers to the Strengths, Weaknesses, Opportunities and Threats of a situation. In this way, the SWOT analysis is a very useful tool, which is used to carry out a strategic diagnosis -both at an individual and organisational level-, which allows to identify and understand the internal and external factors that affect a situation, to enhance the success of a project.
In this way, the SWOT analysis in HR is positioned as a fundamental tool for the human talent department, as it is useful for evaluating, planning, and making decisions regarding the management, administration, and productivity of the department. This type of analysis allows for an effective diagnosis of the entire area, and to identify areas for improvement on which to focus resources.
Benefits of using SWOT analysis in HR
Although the objectives of the HR department may vary depending on the company, in general terms, these departments seek to align the area with the organisation’s strategy and increase staff productivity.
In this sense, the SWOT analysis in HR favours:
- More effective management of human capital.
- The implementation of new recruitment, orientation, and integration strategies.
- It allows to evaluate the overall performance of the processes within the department.
- It allows the identification of areas for improvement to take corrective measures.
- It favours cooperation, as it is carried out jointly.
Steps to implement a SWOT Analysis in HR
1. Identify the main objective of the process to be analysed.
Before implementing any strategy, it is necessary to know which processes or areas need to be worked on. To do this, the first step is to identify the process to be evaluated, or to carry out a scan of all the important processes and select those, in order of importance, that need to be evaluated in depth.
2. Draw the SWOT matrix
To carry out a SWOT analysis in HR, start by drawing a four-quadrant diagram. Each quadrant will represent a category: Strengths, Weaknesses, Opportunities, and Threats.
| Strengths | Weaknesses |
| Opportunities | Threats |
Once the matrix has been drawn, it is necessary to define specifically what we are going to consider as strengths, weaknesses, opportunities, and threats, in order for the analysis to be effective.
Strengths and weaknesses relate to internal factors or factors related to the company. In other words, they are related to conditions within the organisation that can be modified or exploited to optimise human resources processes.
Opportunities and threats, on the other hand, refer to external factors that can affect the internal performance of the organisation. That is, any external variable that cannot be controlled or modified, but that does have an influence on what happens in the organisation, and we must consider them to cushion damage, foresee changes or take advantage of them to enhance processes.
3. Identify strengths
Once the matrix has been drawn, we need to start filling it in. The SWOT analysis in HR starts by identifying the strengths, or positive characteristics, that the organisation has in terms of human capital. Strengths can range from specific technical skills to soft qualities such as leadership or teamwork skills.
By conducting this assessment, it will identify those factors that are worth retaining because they work well or represent benefits to the organisation. By recognising these strengths, HR teams can implement strategies to further develop internal talent.
4. Note down the opportunities
To continue with the SWOT analysis in HR, opportunities must be identified. These represent external factors that, although they cannot be changed, positively affect the company. This involves assessing labour market trends, industry demands, and technological advances that could affect the way talent is recruited, retained, and developed.
By understanding these opportunities, HR managers can adjust their strategies or processes to take advantage of them. This could mean implementing innovative recruitment programmes to attract specialised talent, adopting new technologies to improve talent management processes, or creating strategic partnerships with institutions that represent a vehicle for increased visibility and growth for the company.
To help in this process, at ifeel, our team of psychologists has designed this strategy framework for HR managers, so that you can enhance their leadership.
5. Identify weaknesses
No organisation is free of weaknesses, and it is important to identify and address them proactively in the SWOT analysis in HR. Weaknesses represent both those points of improvement that require a new strategy and those shortcomings that cannot be changed at the moment. This allows organising work priorities to direct resources and efforts to these points for improvement.
These weaknesses may include skills gaps in the workforce, deficiencies in recruitment and selection processes, or cultural issues within the organisation that affect employee engagement and satisfaction.
By recognising and addressing these weaknesses, teams can implement corrective measures that strengthen the organisation’s ability to attract, retain and develop talent. This could involve revising internal policies, improving feedback and appraisal processes, or investing in workplace mental health solutions that enable leadership development to close identified skills gaps.
6. Pay attention to threats
Finally, SWOT analysis in HR also involves assessing external threats that could affect the organisation’s ability to manage its talent effectively. These threats may include competition for talent in the labour market, changes in labour or economic legislation that impact on the organisation’s ability to recruit and retain employees, or changes in employee preferences and expectations that affect employee engagement and loyalty.
By identifying these threats, mitigation strategies can be developed to minimise their impact. This could involve implementing talent retention programmes, or establishing flexible labour policies to adapt to changing employee needs.
7. Analyse the result
Once the SWOT matrix is completed, the team should discuss the results of the diagnosis and develop strategies based on the information from the analysis.
For example, the subsequent analysis allows you to reflect on the opportunities that are present and can be taken advantage of, or what changes the team needs to make in order to overcome weaknesses and possible external threats. This reflective moment is also a good time to identify and recognise the good work of the team, which is demonstrated in the organisation’s strengths.
Unlocking your team’s potential
At ifeel, we know that by implementing SWOT analysis in HR, organisations can position themselves to compete effectively in a dynamic labour market and achieve long-term success.
To support companies in this process, our team of expert workplace well-being psychologists has created a mental well-being solution for businesses that improves talent retention, reduces presenteeism, and combats employee stress.
With our mental well-being solution, your company’s HR managers can receive personalised, data-driven advice on improving mental health at work. In addition, this solution offers employees a 360° mental well-being service structured at different levels according to their needs. Try our solution now to see how it could help you.We hope you found this article about SWOT analysis in HR interesting. If you would like more information about our mental well-being solution for companies, simply request it, and we will contact your team as soon as possible.
