SWOT Analysis Example

Conducting an HR SWOT analysis helps identify strengths, weaknesses, opportunities, and threats within and external to an organization. This process aids in developing strategic HR actions aligned with the company’s objectives.

By Brad Nakase, Attorney

Email  |  Call (888) 600-8654

Have a quick question? I answered nearly 1500 FAQs.

What is an HR SWOT analysis?

The HR team can clearly see the internal and external elements affecting your operations with the use of an HR SWOT analysis. Having a good understanding of your organization’s advantages, disadvantages, opportunities, and threats will help you develop HR strategies that work.

SWOT stands for:





Internal elements that are under the company’s control are its strengths and weaknesses. Threats and opportunities are external elements outside the company that HR cannot control.

As a team in HR, think about examining these elements to see how you can best serve the organization’s objective.

Why is a SWOT analysis important for HR to do?

HR is in charge of all employee-related tasks within the company. It hires individuals who help it achieve its goals.

HR directors should take part in high-level talks with the company’s top management to make sure the HR department is in line with the organization. This will make it possible for HR to comprehend the strategic direction of the business and better prepare and equip the staff to meet its needs.

The HR department can design long-term strategies centered on workforce development and planning by employing a SWOT analysis to identify internal and external issues influencing human resources at your company.

To assess the departmental and individual competencies inside your company, do a SWOT analysis. Teams and employees can recognize, for instance, the capabilities they now have and the ones they don’t. After you have collected all the data, you will be able to identify your strengths and shortcomings and create strategies to hire people or acquire skills that are currently unavailable but will be necessary in the long run.

Why a SWOT Analysis is Beneficial for HR

Using a SWOT analysis, you can examine both internal and external elements that are important to HR objectives and functions.

Identifying your strengths will help you set both short- and long-term goals. Acknowledging your areas of weakness enables you to make improvements or fix problems. Opportunities offer a sneak peek at the future course of your department. Threats have the ability to alert you to impending issues and dangers.

The HR department can allocate resources more effectively by using a SWOT analysis to determine which areas are growing and which are shrinking. It is advised that HR directors perform a SWOT analysis twice a year to assess how the needs of the workforce have evolved over time and how best to adapt.

How to perform a SWOT analysis

  1. Recognize your strengths

Assets that can assist your HR function and strategy are referred to as strengths. These are the internal HR departmental aspects that can assist in guiding the organization toward its objectives.

To determine your strengths, think about answering these questions:

What accomplishments has HR made?

What distinguishes your HR from other companies’  HR departments?

Why is the HR division so excellent? For instance, possessing specialized or specialist talents or access to HR resources.

  1. Recognize your shortcomings

Internal elements known as weaknesses act as a “liability” that may have a detrimental impact on the company.

Consider the following questions to identify your areas of weakness:

Which HR areas do you currently perform poorly in?

What internal obstacles hinder HR’s ability to accomplish its objectives?

Which resources—people, technology, or resources—do you lack in your HR department?

  1. Recognize the possibilities

Opportunities are outside variables that might spur the expansion of the HR division. It can indicate that the business wants to grow into new markets or introduce new service offerings, which would require hiring more HR staff. The business might need to hire more people or give its current staff new training to introduce new services if it wants to get an advantage in a new market.

When identifying your opportunities, consider the following questions:

Which other resources are available to help you meet your HR objectives?

Which HR technologies are likely to be in demand down the road?

What technology or HR solutions can the business use or purchase to help HR perform its duties more effectively?

What are stakeholders’ opinions of the HR division?

  1. Recognize your risks

External variables that have a harmful impact on a business pose a threat to the HR department.

When determining your threats, consider the following questions:

Will automation carry out the responsibilities previously performed by the HR team?

What impressions do prospective employees and the HR community have of your company?

Do other companies’ HR departments possess any advantages over yours?

Examples of HR SWOT analysis

These factors will assist you in identifying the advantages, disadvantages, opportunities, and threats facing your company’s HR department.

  1. Strengths

Having a strong employer brand

If you want to differentiate yourself from the competition and draw in high caliber applicants, consider companies like Apple and Google, which receive thousands of applications daily. Having a well-known employer brand also helps you cut costs associated with hiring a staffing agency or job advertising because you will be attracting candidates on your own.

Competitive benefits package 

According to a Willis Tower Watson survey, 73% of employers cited the competitive job market as the main justification for pay increases. Furthermore, 46% of these companies plan to raise pay budgets to assist employees in keeping up with inflation.

Employee happiness is significantly impacted by a competitive compensation plan. Workers who believe they are getting a fair wage for their efforts are more likely to remain motivated and even go above and beyond in their work to support organizational objectives. HR may lower turnover and raise employee morale by providing excellent compensation.

  1. Weaknesses

Limited funds 

The main duty of HR is to assist the employees of the organization. Their responsibility is to make sure that workers are well-cared for during their employment, including fair compensation, decent working conditions, and chances for professional development, from recruitment and orientation to exit interviews.

Insufficient resources will restrict the department’s functionality. A limited budget for recruitment, for instance, can make the hiring process take longer. The increased workload will cause current team members to become weary and unmotivated. Understaffing could make it harder to meet productivity goals. In the end, it restricts the performance of business.

Increased staff turnover  

The number of employees quitting the company over a specific amount of time is known as the employee turnover rate. If employee turnover is excessive, the business is not able to keep its workforce over the long term. Maintaining and satisfying staff requires effort. Low pay, poor management, a bad work culture, and a lack of opportunities for career advancement are just a few of the many reasons why individuals quit.

Having a high turnover rate puts your competitive advantage at risk as you lose top performers to your rivals. There is a decrease in employee engagement. Company activities come to an end. The requirement for more staff causes important business decisions to be delayed.

  1. Opportunities

Purchasing HR technology

By automating and streamlining repetitive procedures like candidate screening, orientation, timekeeping, payroll, and developing and maintaining personnel records, HR technology investments can speed up HR operations. By allowing your staff to concentrate on more difficult or important HR tasks, HR automation can save time. Additionally, it helps improve the consistency, efficiency, and transparency of HR procedures.

AI is used by HR technology as well, so it can be applied to more complicated tasks like VR/AR. For instance, VR can be used to instruct staff members on how to operate new machinery. Alternatively, you might use virtual reality (VR) to take prospective employees on a tour of your workspace and corporate culture.

Changing Human Resources Procedures 

As work habits have changed, new HR regulations have been created that enable workers to perform their tasks effectively. The “new normal” and constantly changing technologies have made it possible to increase worker satisfaction while optimizing efficiency.

For instance, a lot of tech companies provide hybrid/remote work options. Prodoscore, a pioneer in employee visibility software, revealed that the productivity of their remote workers increased by 47%. The ability to balance their professional and personal lives is a major draw for many people who choose remote employment. They can engage in hobbies, self-care, and family time more frequently. Furthermore, employees who work from home save forty minutes a day on average from commuting and money spent on eating out during office breaks for lunch.

  1. Risks

Tight job market 

When rival companies appoint workers to particular positions, a talent war breaks out. This is particularly the case in an economy where skill is in short supply and job openings are common. According to a Korn Ferry analysis, there may not be enough qualified workers to fill over 85 million positions by 2030. A skills deficit might cost the economy $8.5 trillion in lost yearly revenue by 2030 if it is not addressed.

HR needs to create plans to draw in and keep top people. In a sector where competition is fierce, offering attractive salary packages or schedule flexibility is popular among IT workers. If HR does not make these kinds of adjustments, it runs the danger of losing employees to competing businesses that provide better benefits or working conditions.

Information privacy 

HR data security is more important than ever because more and more businesses are storing corporate data on cloud servers.

The HR team needs to be able to reassure employees that their personal information, including bank account details and social security numbers, is safe. If this is not the case, the business will be hit with fines, legal action, and a damaged image for neglecting to protect employee information.

Completing a SWOT analysis for projects involving HR

SWOT analysis is useful for HR projects as well, as previously mentioned. Furthermore, it is made to assess nearly any kind of endeavor, long-term or short-term.

HR tasks could include creating procedures for hiring apprentices and interns, carrying out team-building exercises, or running a program for employee referrals.

It’s vital to remember that other stakeholders should be included in SWOT analyses for HR initiatives. This gives the HR team a fair assessment of their work and the perception they create within the company as opposed to what they observe outside.

Advice on how to perform a SWOT analysis

To conduct a successful SWOT analysis, appropriate data collection and HR decision-making are necessary. The following advice can help you do a SWOT analysis in HR:

  1. Determine the main stakeholders: It’s critical to obtain feedback from each sector in order to accurately identify and analyze the elements that fall into each of the four categories (strengths, weaknesses, opportunities, and threats). These stakeholders include staff, leadership, the sector as a whole, and the community.
  1. Set aside time for a brainstorming meeting with all stakeholders to identify areas of strength and weakness that impact the organization and the people it serves. When the discussion is limited to the HR team, brainstorming is not likely to generate fresh viewpoints and insights. To get information about opportunities and threats, conduct research. When feasible, support your findings with statistics, graphs, or images to reduce guesswork.
  1. Important KPIs should be established and measured to support your conclusions, as SWOT analysis will serve as the foundation for your HR plans. KPIs include things like hire time and turnover rate.
  1. Make a SWOT analysis. List all of the input gathered from the stakeholders and rank it from most to least significant. You can support other factors by giving priority to those that will boost the business’s profits the most.
  1. Make plans of action to decide which and if:

You can take advantage of your advantages to open doors in the industry.

You can remove risks and vulnerabilities by using your advantages and strengths.

Threats might be lessened in comparison to vulnerabilities.

  1. Store the list somewhere that is accessible to all parties involved. Examine it periodically to ensure that the most important issues are handled first. Assess to see whether circumstances around the factor have changed so that the action plans can be modified appropriately.

In sum

With the help of an HR SWOT analysis, the HR team can clearly see external and internal variables.

Internal elements that are under the organization’s control are its strengths and weaknesses.

Threats and opportunities are external elements outside the company that HR cannot control.

A thorough assessment of strengths, weaknesses, opportunities, and threats will help the HR team develop effective strategies.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment Law

Most recent blogs:

What Is a Gap Analysis

What is a Gap analysis?

Gap analysis helps businesses compare current performance with desired goals, identifying inefficiencies. This method aids in developing action plans to bridge performance gaps.
Skills Matrix

Skills Matrix

Utilizing a skills matrix helps identify existing competencies within your team and highlights essential skills for business success. This tool enables strategic talent management and efficient task assignment in organizations.
SWOT Analysis Example

SWOT Analysis Example

Conducting an HR SWOT analysis helps identify strengths, weaknesses, opportunities, and threats within and external to an organization. This process aids in developing strategic HR actions aligned with the company's objectives.

Costco Hot Dog Price Story

The story about Costco $1.50 hot dog price began in 1993 when the Costco merged with Price Club. Costco's $1.50 hot dog price remains unchanged in 2024.

Request for Production of Documents, RPOD, CCP 2031.280

Starting January 1, 2020, California's civil litigants face stricter discovery rules under Cal. Civ. Pro. § 2031.280(a). All produced documents must now be labeled by request number, impacting both new and ongoing cases.
What is a default judgment

What is a default judgment

A default judgment is issued when a defendant fails to respond to a lawsuit, allowing the plaintiff to win by default. Understanding this process is crucial for both parties involved in litigation.
What is a quitclaim deed

What is a quitclaim deed

Quitclaim deeds offer a quick way to transfer property ownership without guarantees, distinct from warranty deeds. Ideal for non-sale property transfers among family or into trusts, they require careful legal consideration.
Sole Proprietorship Business License

Sole Proprietorship Business License

Sole proprietorships offer simplicity and fewer formalities for new business owners, with benefits like no separate taxes. Remember, personal and business assets aren't distinct, impacting liabilities and the need for proper licensing.
What is the most important part of your business plan

What is the most important part of your business plan

The executive summary shines as the pivotal element of a business plan, serving as a decisive factor for readers to delve deeper. A comprehensive guide on crafting an impactful business plan, focusing on unique strategies and essential components.
Easy Businesses To Start

Easy Businesses To Start

Unleash your entrepreneurial spirit with these straightforward home-based business ideas, from e-commerce to creative pursuits. Embrace the flexibility and potential for financial independence with diverse options suited for various interests and investment levels.
What is the standard deduction

What is the standard deduction

Understand the IRS standard deduction, a straightforward option for reducing taxable income without needing detailed documentation. Delve into eligibility, amounts for 2023-2024, and considerations for itemizing versus standard deduction.
How to get a business license

How to get a business license

Grasp the essentials of obtaining a business license in California, focusing on local and state-level requirements. Uncover specifics on when and why different types of business licenses are needed.
Why Do Businesses Fail

Why Do Businesses Fail?

Uncover the key factors contributing to small business challenges, including financial obstacles, inadequate management, and flawed marketing strategies. Understand the role of a comprehensive business plan in ensuring long-term success.
What is a BOC 3

What is a BOC 3

Understand the essentials of a BOC-3 filing for transportation businesses in California, detailing the designation of process agents for FMCSA certification. Learn the requirements, costs, and benefits of choosing the right process agent for your business.
Standard deduction vs itemized deduction

Standard Deduction vs Itemized Deduction

Understand the key differences between standard and itemized deductions to effectively reduce your taxable income and potentially save on taxes. Choose wisely to maximize your tax benefits based on personal financial details.
How to calculate net income

How to calculate net income

Unveil the significance of calculating net income for business profitability, a key indicator for financial health and decision-making. Understand the formula and practical applications for determining net earnings.
Itemized deductions

Itemized Deductions

Optimize your tax return by understanding the differences between itemized and standard deductions, crucial for minimizing tax liability. Learn the benefits and challenges of itemizing to make informed financial decisions.
What are intangible assets

What Are Intangible Assets

Discover the value of intangible assets like patents and trademarks in your business, crucial for strategic and financial planning. Learn how to manage and amortize these non-physical yet essential resources.
What is accounting

What Is Accounting

Understand the importance of accounting in monitoring financial activities and making informed decisions for your business. Gain insight into accounting fundamentals and its role in legal and tax matters.
Dysfunctional family

Dysfunctional Family

Explore the impact of growing up in a dysfunctional family, where constant conflict, neglect, and various addictions shape childhood experiences. Understand common traits, the consequences on children, and the cycle of unhealthy parenting behaviors.
When Was the Great Recession

When Was the Great Recession?

Delve into the Great Recession's timeline, an era of financial distress from December 2007 to June 2009. Understand the causes, including the 2007 housing bubble crash, and worldwide effects.
When Was the Last Recession in the US

When Was the Last Recession in the US?

Review discussions on America's most recent downturn, comparing the impacts and definitions of Covid-19 and the Great Recession. Analyze the significant effects of past economic crises on US policy and business approaches.
What to Invest in During a Recession- 4 Ideas

What to Invest in During a Recession: 4 Ideas

Uncover effective strategies for investing during a recession, assessing personal goals and current market situations. Examine four robust investment approaches to manage through economic declines effectively.
Will the US Get Hit with a Recession in 2024

Will the US Get Hit with a Recession in 2024?

Experts debate the likelihood of a 2024 US recession, analyzing factors like the yield curve and consumer confidence. Predictions vary, with a focus on interest rates and tech layoffs impacting the economy's future.
How Long Do Recessions Last

How Long Do Recessions Last?

Learn about typical US recession lengths and influencing factors, noting recent trends with shorter durations averaging 10 months. Investigate how external factors and government decisions affect recession timelines, comparing historical data.
When Will the Recession End

When Will the Recession End?

Economists predict a mild US recession with limited impact on employment and spending. The duration and impact of the recession depend on Federal Reserve policies and business cycle patterns.

Contact our attorney.

Please tell us your story:

0 + 8 = ?