Major layoffs, rising unemployment, and lowered profits have reshaped the way workers are hired and fired, and dramatically highlighted the need to rethink workforce planning.
Recession ahead- What does an HR do? It creates instability and uncertainty. Some studies suggest that these are going to create double-dip recession.
And we can see this is happening in some of the organizations. What does organization do? The recession creates financial problems for organization.
Then there will be a need for pay restraint as the budget falls. In response to this most of the organizations announce recruitment freeze, job losses and various ways of cost-cutting. To attract and retain talent becomes a major concern for HR. Companies will have to focus on rewarding outstanding contributions - those people organization cannot afford to lose.
They need to see an increased emphasis on talent management. All I want to say "HR is vital to an organization in a recession. If you want to survive, then you have to keep your best people. Economic cycles of slowdown and recession followed by recovery and expansion appear to be a fact of life now.
When faced with an economic slowdown or recession, many companies focus exclusively on downsizing. They basically focus on preserving cash. We have seen that many companies take an arguably myopic approach that results in taking out too much talent. And perhaps they miss opportunity to use the downturn to recruit top-flight talent for areas of strategic importance.
The talent going out the organization will create a great loss.
The first sign of this deterioration will be on customer services, both internal and external. It is not only the person that exit from the organization, all the contacts, competitive advantage, information, strategies and value exit. The elimination of key leaders because of financial constraints can also lead to a certain level of organizational dysfunction.
HR strategies to make organization prepare for recession Organization is still in expansion phase after recession and we know that recession may come again which will create financial crises in organization as well as in our life.
Organizations should just not jump into the layoff instead management should follow the different strategies as shown in the diagram. Some of the HR strategies and practices are described below: Obviate layoffs with creative strategies Layoffs should not be the first way to handle the financial crises; HR should consider alternative ways to save money while still saving jobs.
HR should try to keep employees along with the organization and away from your competitors during the tough economic times. This can be only achieving by motivating them and aligning them with the organization.
A hiring freeze constitutes a mild form of downsizing and reduces labor costs in the short term. Some firms continue to hire new employees while cutting jobs at the same time. For example in its latest attempt to fight rising jet fuel costs and a weakening U. Organization can have mandatory vacation which requires employees to use their accrued vacation days or mandating that individuals take a number of unpaid vacation days during a certain time period.
Organizations sometimes resort to a reduced workweek.
This may translate into the reduction from 40 to 35 or fewer hours and thereby reduce the short-term payroll expenditures. Employees will also be able to spend more time with their families. Reducing or abolishing overtime pay for employees can be a technique for reducing operational costs in the short term.
Firms may decide on an across all the employees.
Organizations can also cut pay of the selected categories only for example non-management, blue-collar employees, or salaried employees, etc.What HR steps Companies are taking to prepare for Recovery from Recession?
What are the Envision on post-recovery staffing model? What are the Roles of Temporary Workforce? Business musings.
Articles and thoughts about all things innovative and strategic. 12 Markets shrink in a recession so where there were lots of people wanting and willing/able to pay for your product or service before, there are now less people able to purchase what you have to offer.
Here are 5 steps to prepare your business for a. So taking a bit of time now and a page out of emergency preparedness lets prepare for a recession.
Steps for Recession Preparedness: The investment portfolio allows you to participate in the recovery of those companies and the Maybe it’s working out your recession budget. Maybe it’s calling HR or logging into your work HR portal to.
May 16, · FOR THE ABOVE I WANT PAGE ANSWER PLEASE HELP ME How HR Processes got affected by Recession? 2. What was the Reactions of Recession? What HR steps Companies are taking to prepare for Recovery from Recession? 4. What are the Envision on post-recovery staffing model?
5. What are the Roles of Temporary Workforce?Status: Open. Corporate Recruiting: Action Steps During a Recession By Dr. John Sullivan April 14, Tweet.
there are some action steps that HR can take in order to prepare the firm for the downturn in the recovery: Learn what these trends are and how companies are preparing for them. Here, we wanted to find out how what steps they are taking in response to the crisis, how their priorities and practices have changed, and what they predict the .