Small and mid-sized enterprises (SMEs) are the backbone of India’s economy. They drive employment, innovation, and regional growth. Yet, as businesses scale, one challenge appears consistently across industries – aligning people decisions with business outcomes.
This is where strategic HR plays a crucial role.
In many SMEs, HR begins as an administrative necessity. Over time, it becomes a powerful lever that influences growth, profitability, and retention. when aligned correctly with business strategy.
Insights from the Saarthi HR workshop, facilitated by Anupama Sultania, highlighted how SMEs can move HR from administration to acceleration without adding unnecessary complexity.
Administrative HR focuses on essential operations:
Strategic HR, on the other hand, connects people strategy with business goals. It helps organizations:
This shift does not require large teams or complex systems. It requires clarity, structure, and intent.
Growth becomes smoother when HR supports business planning instead of reacting to gaps.
Strategic HR contributes to growth by:
When people plan aligns with business direction, teams are better prepared, and growth becomes more predictable.
Profitability is not only about increasing revenue. It is also about optimising existing resources.
HR can directly influence margins by:
Case Insight: A ₹2-Crore Turnaround
A manufacturing SME implemented two focused HR initiatives:
The results included:
The key takeaway was clear: small, well-designed HR interventions can deliver significant business impact.
Retention challenges are common during growth phases. Employees are more likely to stay when they experience:
Frameworks such as the 4C model (Career, Compensation, Care, and Connect) help SMEs approach retention in a structured, practical way.
Low-cost initiatives like regular recognition, transparent goals, and leadership accessibility often have a stronger impact than expensive engagement programs.
Modern HR is increasingly data-driven. Metrics such as:
Help leaders make informed decisions that support both people and performance.
When HR insights are used alongside business data, leadership gains greater visibility and control over growth challenges.
One practical takeaway from the Saarthi workshop was the value of a 30-60-90 day HR impact plan:
This phased approach helps SMEs strengthen HR systems without disruption.
Strategic HR enables:
When HR moves beyond administration, it becomes a business enabler rather than a support function.
As emphasised during the Saarthi HR session facilitated by Anupama Sultania, aligning HR actions with business objectives often becomes the turning point between intent and execution.
At Stratefix, we work with SME leaders to help them connect HR strategy, systems, and culture with measurable business outcomes.
If your organisation is growing and looking to strengthen productivity, retention, or leadership capability, reviewing how HR supports your business journey is a valuable starting point.
Because when HR becomes strategic, business performance follows.
Let’s start that conversation.
