Whether private or public, all organizations are passing through difficult and uncertain times. The recession in the global economy, and the related financial crisis are having a great impact on both government and private sectors. The banks are increasingly reluctant to lend money. HR reacted to this crisis by large scale redundancy program and also by freezing the new recruitments.
Gradually this trend is changing and many of the big organizations are focusing more on work force planning. In the rush to downsize, eventually the company or organization loses so many talented employees.
The slow-down is obviously having an impact on most of the organizations world-wide. The private sector is focusing on reducing cost and increase profits. The HR Manager position is supposed to play a key role as a commercial function. Public sectors are not remaining untouched; consultants are also helping government and government owned organizations for making their operations more efficient. The strategy of the government, for their financial institutions, in many countries has been the bailout strategy. Budgets were fine-tuned, and in several countries the civil services were rationalized. In such situations, HR Managers should pilot the organizations through uncertain times.
HR Manager should support the cost-reduction measures, but at the same time the HR Manager position should remind the board of bigger picture, and other ways of cutting cost than head counts. These can include:
- Exploring redeployment of employees, where ever feasible.
- Placing strategy for talent retention and management in place.
- Reassuring the employees remaining that they are valued
It should be HR Manager's duty to lead the organization in difficult times; and capitalizing on the opportunities presented by down turn. HR should also work closely with the Board to think creatively on understanding the performance of the organization, and make plans that would fulfill the organizational requirements. HR Manager should also be able to motivate and retain talented employees in uncertain environment.
It is the need of the hour that HR boosts up the spirits of the employees who are considered to be the lifeblood of the organization. It will assist the organization in the attainment of the corporate goals through satisfaction of the personal objectives of its employees. Further steps in an attempt to retain the valuable human resource of any organization may include the proper reward system being introduced in the organization. The motivation level of the employees has to be raised in order to have the better results on a larger scale.
To lessen the impact of the global recession, HR department holds the key responsibility to serve as a link between the management and the employees. The opinion of the senior employees in the hierarchy of any organization should be valued. In the light of their experience and professional expertise, HR needs to make some appropriate recommendations to the management so as to get the company out of the unforeseen and unpleasant business situations. It will be having a twofold affect; firstly, it will be beneficial for the organization to take full advantage of the competency of its employees, secondly; the employees will feel valued and will be encouraged to contribute more towards the betterment of the organization.
However, it is not only the HR Manager who is supposed to rescue the ship of the organization all alone. It needs the cooperation and assistance of the higher level management as well. That is to say that there has to be an air of cooperation and assistance from the management. The management lays down the policies for the organization and its employees, so a heavy responsibility lies on the shoulders o the management to watch the interest of the employees so as to retain the most of the hard working employees. There has to be a lenient approach when it comes to monetary punishments and deductions in the salary of the employees as it will dishearten them as there is an ever increasing inflation rate due to the Global Financial Crisis.
Moreover, it will be useful if the management gives an option to the employees about the method of doing a particular job. It will create an air of confidence and trust between the employer and the employee and they could be better able to contribute to the benefit of the organization.