Role of HRM in Role of HRM in RecessionRecession

ContentsContents

IntroductionIntroductionMain HR Recession InitiativesMain HR Recession InitiativesHRM Priorities and RecessionHRM Priorities and RecessionRecession and Employees’ career optionsRecession and Employees’ career optionsAffected HR Processes by the RecessionAffected HR Processes by the RecessionHRM Recession Solutions & RecommendationsHRM Recession Solutions & RecommendationsHRM Communication in RecessionHRM Communication in RecessionHuman Resource Management in a Recession Human Resource Management in a Recession EconomyEconomy ConclusionConclusion

IntroductionIntroduction

Recession can be an interesting and Recession can be an interesting and dangerous period for the HRM functiondangerous period for the HRM functionThe HRM Function needs to provide the The HRM Function needs to provide the tools to managers :tools to managers :

- Security to key employees- Security to key employees - Healthy communication in organization- Healthy communication in organization

The HRM Management has to define a The HRM Management has to define a separate HRM Vision during Recession separate HRM Vision during Recession

Main HR Recession InitiativesMain HR Recession Initiatives

The HR Recession Initiatives have to The HR Recession Initiatives have to focus on areas like:focus on areas like:

-Cost cuttings-Cost cuttings -Key Groups of Employees -Key Groups of Employees -Process Efficiency -Process Efficiency -Honest Information for Employees -Honest Information for Employees

Downgrading/canceling holiday party (35 percent) Downgrading/canceling holiday party (35 percent) Eliminating/reducing seasonal workers (28 percent) Eliminating/reducing seasonal workers (28 percent) Organization-wide restructuring (23 percent) Organization-wide restructuring (23 percent) Raising employee contribution to healthcare premiums Raising employee contribution to healthcare premiums (20 percent) (20 percent) Restructuring HR function (14 percent) Restructuring HR function (14 percent) Implementing a salary freeze (13 percent) Implementing a salary freeze (13 percent) Having a mandatory holiday shutdown (13 percent) Having a mandatory holiday shutdown (13 percent) Reducing/eliminating other employee programs (12 Reducing/eliminating other employee programs (12 percent) percent) The percentage of employers that have already The percentage of employers that have already implemented salary freezes jumped from 4 percent in implemented salary freezes jumped from 4 percent in October to 13 percent in December. October to 13 percent in December.

According to the survey conducted among 117 employers in early Dec, 2009, found that other popular cost-cutting measures included:

HRM Priorities and RecessionHRM Priorities and Recession

The HRM Innovation during the recession The HRM Innovation during the recession has to focus on the following topics:has to focus on the following topics:

Reduce the number of employees in the Reduce the number of employees in the organization organization Strategic initiatives to increase the productivity Strategic initiatives to increase the productivity and efficiency of the whole organization and efficiency of the whole organization Redesign of the compensation scheme Redesign of the compensation scheme Cancellation of several benefit schemes Cancellation of several benefit schemes

Training and Development Programs cuttingTraining and Development Programs cutting

Affected HR Processes by the Affected HR Processes by the RecessionRecession

The recession affects different HRM The recession affects different HRM Processes like:Processes like:Recruitment Recruitment Training Training Compensation and Benefits Compensation and Benefits HR Front Office HR Front Office

HRM Recession SolutionsHRM Recession Solutions

Stop and prioritize the recruitment process Stop and prioritize the recruitment process The bonus schemes have to be reviewed The bonus schemes have to be reviewed The talents have to move around the The talents have to move around the organization organization Identifying the real key employees and to Identifying the real key employees and to keep them in the organization keep them in the organization Identifying the real top potentials and to Identifying the real top potentials and to strengthen their development program strengthen their development program

RecommendationsRecommendationsDo the brainstorming session with top Do the brainstorming session with top management management A complete or partial job freeze A complete or partial job freeze Easy flow of communication Easy flow of communication Conduct of proper counseling session. Conduct of proper counseling session. Review all HR policies, processes and Review all HR policies, processes and procedures procedures Before lay-offs ensure there are no other Before lay-offs ensure there are no other opportunities with in firmopportunities with in firm

HRM Communication in HRM Communication in RecessionRecession

Human Resource Management Human Resource Management in a Recession Economy in a Recession Economy

Differentiate Between Your Good and Differentiate Between Your Good and Average EmployeesAverage EmployeesRedirect Your Employees to Other Redirect Your Employees to Other DepartmentsDepartmentsListen To Your EmployeesListen To Your EmployeesKeep Them Motivated and BusyKeep Them Motivated and Busy

How to intact your employee How to intact your employee during recession:during recession:

Differentiate between your good and Differentiate between your good and average employeesaverage employees Redirect Your Employees to Other Redirect Your Employees to Other DepartmentsDepartments Listen to Your EmployeesListen to Your Employees Keep Them Motivated and BusyKeep Them Motivated and Busy Show them the long term visionShow them the long term vision

Talent Management in RecessionTalent Management in Recession

Recession and Recruitment:Recession and Recruitment: --Review the employee performance Review the employee performance

evaluationsevaluations --Top management should know the Top management should know the

contingency plancontingency plan

ConclusionConclusionThe HRM Function has to co-operate The HRM Function has to co-operate closely with the top management. closely with the top management. The ability to attract and retain workers The ability to attract and retain workers when times are really tough requires when times are really tough requires leaders to be at their best.leaders to be at their best. Issuing pink-slips and managing layoffs Issuing pink-slips and managing layoffs are the biggest challenges that HR faces are the biggest challenges that HR faces today HR today is to utilize this period of today HR today is to utilize this period of recession as an opportunity. recession as an opportunity.

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