A new year has started – it is still fresh, and so let’s look at it from the perspective of HR. I know, I am not the first one to do so, but have my fair opinion to share.
2018 as a year in not only HR but our global economy was a difficult one – but all in all successful. It was though already impacted by recession signs and negative policies (e.g. tariffs, beginning trade wars, etc.). 2019 will see, I am certain, unfortunately much more of this. The US will move on further with their “America first” policy, and important countries like Brazil and Italy with their new right-wing governments will have another hit at our economy. Also, the current economic upswing is already lasting for almost 10 years. This is a crazy long time, so let’s get ready for a correction.
During economic corrections, the work of HR is a not so nice one. It is about lay-offs and cost-cutting. And as much as these topics are not sexy, it is important “how” we handle them as HR professionals. – it is our imperative to make these typical recession steps not about the recession, but about the next upswing. We are setting the stage for the next growth (or not).
(1) Be smart about cost-cutting
Very often, we are asked to cut down on all HR costs – regardless what they are. We need to be smart here and ensure that cost cutting does not hurt the long-term strategy and success of the company. Don’t cut to harsh into development of your people as they are the key to future success. Recession is the time of investment to be ready for the next upswing. This is counterintuitive, especially when you talk to your CFO – but if we in HR are not taking care about future readiness, no one will.
Recruiting is the next typical cost cutter: Hiring freeze. Don’t go there. This will hurt your employer brand and people won’t apply at your company anymore. In a recession, smart talent is more available and easier to recruit than in any other time. Keep your doors open and get the right talent in to make the next upswing (don’t wait for it to come to you, M A K E it).
(2) Utilize the opportunity to refresh (the right way)
I am sure that you had already analysed what is going well and what is not going well in your organization. But it is hard to persuade colleagues when things go well. But now the time has come to make bold moves, to change structures and re-organize, if required to transform. Let’s set this up for new success.
(3) Ensure that the tone is set in the right way
Be sure to set a positive tone throughout any action. Make sure it is not about “surviving the recession” but about “setting up for success”. It is important to keep morale and trust high in these times – especially to keep your key-talent on board. They will be the first ones to leave, keep them and place them in charge of success. The messaging is at least as important as the actual actions you take.
I strongly believe that these are our HR imperatives most likely needed for 2019. We need to understand the situation and of course support what is needed and right to do – but if we as HR are not taking care about setting up for the future, not sure who will. Recessions are huge opportunities to be even more successful. This is what needs to be understood. They are not a threat. – regardless of what others say. Let’s be the architect of the future – once again – and see 2019 as a huge opportunity.
Chief HR Officer 