Human Resources SWOT Analysis [Update 2022] ❤️

Human Resources SWOT Analysis 2022

A human resource SWOT analysis focuses on external and internal elements that can boost or hinder human resource activities within your business. 

The acronym SWOT is a reference to Strengths, Weaknesses and threats, and opportunities. This type of analysis can speed up your company’s move from reactive mode to proactive to improve HR strategies and efficiency.

Human Resources SWOT Analysis

What is a SWOT Analysis?

It is an abbreviation that means strengths as well as weaknesses, opportunities, and threats. It’s an easy method of organizing thoughts about the opportunities and challenges that a particular company faces.

There is no set procedure or format for a SWOT analysis. The report can be long or concise. In most cases, a SWOT analysis will take the form of a simple chart with four panels with each panel having short bullet points for each of all four SWOT categories. 

They can be followed by more elaborate documents or discussions with a group of people to detail each item on the list.

There are a variety of guidelines and software applications to conduct a SWOT assessment. For example, lists about 10 elements in each category businesses of all sizes should consider in conducting a SWOT. 

Highlights could be specifics like capabilities and reputation for the brand, while weak points could focus on the weaknesses of competitors or the shortcomings in capabilities. 

Similar to opportunities, they look at market conditions and trends, while threats encompass everything from new regulations to unpredictable weather-related incidents. offers SWOT analysis for Soft-Touch the manufacturer of cushioned attachments for face masks. 

The SWOT identified key strengths of the company including its distinct place in the marketplace as the only supplier of a product that is specialized. 

However, Soft-Touch was also faced with the risk of losing quality control as its manufacturing process was outsourced and was not under the direct oversight of the company. 

Soft-Touch was confronted with the possibility of expanding its manufacturing capabilities but also had to contend with the limitations of having limited capital to invest in expansion.

Strengths In The SWOT Analysis For Human Resources

Human resources management (HRM) Your department’s strengths usually are internal aspects that help the HR strategy and functions. 

HR strategies include long-term objectives, like keeping up with current trends regarding the workforce or becoming an employer that can attract the most skilled applicants and keep engaged employees. 

Consider Google, Microsoft, or Amazon as models for the kinds of businesses that get hundreds of resumes and applications each day.

The general public and applicants who are interested in working for these organizations may not be aware of what their strengths as an organization are and yet you can be sure they don’t fly the whims of their own pants in creating a unique brand of HR that some candidates believe to be their dream job with a great employer.

SWOT analyses can identify strengths across all functional areas of HR. For instance, strengths in recruitment and selection could include recruiters who know about the entire process of employment, and who regularly provide applicants and prospective candidates with information on each step of the recruitment process to ensure they are comfortable applying for jobs. In the end, internal factors that make a difference generally include the expertise of HR personnel.

 Weaknesses In The SWOT Analysis For Human Resources

Alongside telling you what’s going well within your HR department, the HRM SWOT analysis can help you determine the areas that aren’t working, and ultimately for the entire organization, because HR is a part of the employees. 

Any weaknesses discovered through a SWOT analysis can be areas to improve. Similar to how a SWOT analysis could determine the strength of your HR skills but it can also reveal areas of weakness in your HR knowledge.

If, for instance, your HR benefits manager isn’t up-to-date on state and federal employment laws this is a flaw that could be risky. 

You could fix that flaw by giving the benefits professional instruction on current regulations or even include “maintains current knowledge of the applicable laws governing employment” in his performance appraisal even if it’s not already included in his performance goals. 

This SWOT analysis of the benefits and compensation is extremely crucial as it is tied to the organization’s compliance with the employment laws and regulations.

 Opportunities In The SWOT Analysis For Human Resources

One of the most important external factors that are important external factors HR performing a SWOT assessment for the company is the potential to grow – at an organizational level. This results in a requirement for growth at the HR Departmental Level. 

In the context of an organization, growth could be the result of expansion into the market that is new or developing or the creation of a brand new product line or service. 

To accommodate this kind of organizational growth it is likely that you need expansion in the HR department’s capabilities or staffing. 

If not, the organization’s growth could be a problem for HR departments in the event that HR is unable to accommodate expansion at the macro level.

Another possibility that could be discovered through a SWOT review is your company’s achievement in acquiring an expert in business development who, because of her network and connections enhances the margin of profit for your company. 

This type of opportunity demands growth within your HR department to accommodate new business, and consequently the need for more employees to aid in the process.

 Threats In The SWOT Analysis For Human Resources

The SWOT analysis you conduct in HRM will expose your department’s threats. External threats could have negative effects on the HR department and even the company. 

One example of an external threat is a rival who managed to lure the highest-producing sales executive. 

Not only do you have to fill the spot that she left open but you also need to come up with a plan for maintaining your company’s performance in her absence of her, regardless of the possibility that she’s applying the same methods at her new position.

Other threats external to your business could be environmental in nature, for example, changes to wage laws, which affect the ability of your business to pay its employees. 

The shift towards the minimum wage has had a negative impact on numerous small and large businesses alike. HR departments are often in a position of a disadvantage since they’re not self-sustaining.

they’re not revenue-generating departments, which means that funding may be restricted for HR-related activities beyond what is absolutely required. 

The best method to limit the impact that external risks can have is to conduct an HRM SWOT analysis early enough but still act in a proactive manner.

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