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HR ROLE IN TOUGH TIMES | |
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During these difficult financial times the question of how HR can and should contribute to business performance is especially pressing.
Some express concern that this period of downsizing poses a risk to HR’s evolution from being a mainly administrative support function to being a business partner and coach. Indeed in the short-term much of HR’s time may be dedicated to managing terminations in a professional way, yet will HR also be called upon to ‘take back’ people management responsibilities from managers with the objective of freeing manager time to further ‘focus’ on the business?
Our opinion at MindShift is that this risk is small, and that the financial crisis actually provides a key opportunity for HR to demonstrate the analytical and business competences that it has been steadily building during the last decade. HR not only manages terminations but provides insight into how the organization can be structured to achieve maximum efficiencies with reduced personnel. As HR and management experience the benefits that a ‘consultative’ HR organization provides, the question becomes not only how HR can manage the consequences of cost-cutting decisions, but rather how can HR support the organization to navigate this storm in the best way and, especially, to prepare for better times come!
HR priorities for 2009 At the end of 2008, as part of MindShift’s annual client satisfaction survey (when we receive extremely positive feedback, but not the topic at hand…) we asked our clients and HR contacts to describe their priorities for 2009. As expected their focus for this year is on contributing to the top line rather than solely focusing on cost cutting.
TOP 10 PRIORITIES FOR HR EXECUTIVES IN 2009
Close to half of the respondents stated that performance management is a key priority, followed by talent management and managing change. The combination of these three ingredients appears to be the favored recipe for HR’s focus during these difficult times. It consists of optimizing the contribution of the existing workforce by promoting a performance culture and facilitating change (new ways of working, new business logics, achieving more with less).
In fourth place comes resource planning which forecasts the needs tomorrow in order to plan for the most efficient flow of resources. Notably the current labor market opens up possibilities for opportunistic recruitment that should not be overlooked. A thorough resource planning process will provide facts regarding who companies should target for recruitment and when recruitment should pick up again.
Cost cutting (overall and in the HR department) was only mentioned as a priority by one out of six respondents. This confirms our views that while cost cutting is an important dimension of HR work (as it is for any part of the business), where HR makes the greatest difference is in enhancing performance.
The majority of the HR departments will continue to struggle during the financial crisis, both in terms of having to decrease costs and in managing large downsizing operations. Having said so, their strategic role will be strengthened as they help management to make tough workforce-related decisions that will impact on their organizations for years to come.
About MindShift MindShift is a Human Resource & Organisation consulting firm offering strategic and operational advisory services. Our clients are mid-sized to large multinational corporations from a wide range of industries. MindShift employs seven consultants with international backgrounds in human resource management, organisational development, and business administration. |
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MindShift, Östermalmsgatan 83, 114 50 STOCKHOLM, Sweden | |
