HRM role in tough times

Recession is about the creative Human Resource Management. HRM function is asked to bring new ideas, to change the HRM process and to develop or change the procedures while reducing costs of the organisation.

In many cases, this means implementing a redundancy programme and for some companies this can be the only option. So long as a fair redundancy procedure is adopted with meaningful consultation, fair dismissals and managing 'survivor syndrome', a company can survive to meet ongoing needs. However, for some companies there could be other options to consider.

It is at times like this that HR needs to take charge and help both employees and the business work through challenging times through extra advice, training and support.

1) Strategic moves

In any change management programme,there will be the inevitable redundancies. A major re-structure of the business to anticipate future needs and cope with current pressures is a major strategic move. This allows the business to hold on to key talent who are slotted into key roles with an accompanying training and development plan, and is more effective than a mass redundancy programmes. A planned process allows a company to remain in control. Securing existing talent and investing in them will ensure that a company becomes more competitive so that when the economy picks up they are much better placed to move forward.

2)Nurture and reward talent

Talent management is key in these challenging economic times to ensure employee engagement. Talent needs to be nurtured and rewarded accordingly to ensure employees don't jump ship and join a competitor. Having clear HR processes in place such as succession planning and career paths are the basic building blocks together with appropriate training and development.

3)Ongoing Training and Development

This is often the first HR process to go when things get tough. Cutting back on training is a false economy because when key skills are needed in response to market forces in future, a company will struggle. Many companies see this as an unnecessary cost. However, there are low cost and even free options to consider such as work shadowing and developing coaching and mentoring programmes using existing talent to train developing talent.

Web based discussion boards can be hosted where any one can post questions or doubts and others will share their experience over the issue. This will help in sharing experience, solutions and best practices as and when required.

4)Total Reward programme

There is the need to look at creative ways to reward staff, where, for the time being, increased financial compensation is not available. Communication to staff about companies' actions in this area will help employees to understand the hows and whys.
Offering more tax-efficient benefits that can save the company money could release funds to offer motivational perks such as company days out or a paid-for social gathering to improve motivation.
Educating staff in the value of their total reward package can often be beneficial. This can be achieved through providing total reward statements either paper-based or online or by financial workshops, on key aspects such as pensions or financial benefits.
Flexibility is a major motivator and the introduction of flexible working, flexi-time, job sharing, and home working is surprisingly easy ways to improve the bottom line.

5)Open Communication

Many companies still believe it's best to provide employees with minimal information about layoffs to prevent them from talking about it. But just the opposite is true.

In the absence of information, people make up stuff and panic, there's resentment, and they get very paranoid. HR needs to stand up for those being laid off and continuously motivate those who survive the lay off. HR should listen to the employees, Keep them motivated and show them the long term vision.

The above steps will enable the employer to hold its team together during a recession, and will even make bond between all of you stronger. Employees should be motivated enough to stick to the employer during tough times and put in the extra effort required for the organization growth.

6)Improve effectiveness


Now is a good time to remind our workforce that providing quality service to customers and creating greater effectiveness and efficiency are the absolute best ways for employees to help the business through the difficult times.

Fear and the drive to keep your business up and running can unify an organization and become a great motivational tool for employees. A shared challenge enables team members to set aside their individual concerns and rally around a greater common cause.

Employees should be motivated enough to stick with their leaders during tough times and put in the extra effort required for the business to come out of the storm unscathed. To achieve this level of motivation, employees need to trust their leaders and the organisation.


7) Earn the Trust

Trust is the most important element in today’s world of business, at the personal, institutional and global level. There is a positive relationship between trust and team satisfaction and commitment within the team (relationship commitment). Although team satisfaction in some situation is more strongly related with perceived task performance than with trust, as we battle through the economically difficult times that confront us, the elusive quality of interpersonal trust will be a sustaining variable for the retention and motivation of our workforce.