Thursday, October 07, 2010

HR Talk: Recession Offers an Opportunity for HR to Shine

by Darrin Coon   Edited Thursday, December 02, 2010

Originally Published in Biz to Biz NW Arkansas

I vividly recall the day my wife and I embarked on our second canoe trip down Missouri’s Jacks Fork River, one of the top ten scenic float trips in the world. In contrast to our first trip, the water was up. It had rained for several days, and the river was transformed from an amateur-friendly class to a challenge that demanded advanced canoeing skills. In a matter of minutes our canoe ended up wedged in some tree branches, and it was only with the help of an experienced boater that we were set on our way again. I still recall his wise advice: “If you are going to enjoy your trip today, you had better learn to paddle into the current and navigate the obstacles to your advantage.”

His counsel was right on target. There had been a change in the environment since we had maneuvered that river last, and if we wanted to be successful on this journey, we needed to change our behavior.

During robust economic times there is a tendency in human resources to over-emphasize soft skills and positive employee relations. Everyone likes a friendly, service-oriented HR department where “mission-fit” and “core competencies” work well.

Problem is, when a company is threatened with its own economic survival, the HR department –like a boat on a swelling river – faces a new environment. Pressures associated with layoffs, benefit reductions, hiring freezes, and stressed employees dominate. Instead of viewing it as a problem, consider it an opportunity to confront the challenge and navigate the obstacles to the company’s advantage.

  • Encourage employees to think like owners. When times are tough, this mindset makes us more prepared to make the changes needed to support the company’s survival. As the source of staff communications, HR language can encourage everyone to see themselves as stakeholders.
  • Take a hard look at succession planning and talent management. HR can help ensure the right people are staying (or leaving), as well as identify and develop future leaders. Use employee appraisal systems that emphasize the business acumen needed to restore profitability.
  • Re-work your training programs that rely primarily upon personality approaches. Instead, place greater emphasis on critical business behaviors. It takes more than the ability to read a P&L to know how a company makes money. Training should emphasize behaviors that actually increase sales, reduce costs, and grow market share.
  • Rein in out-of-control benefits. HR can shop healthcare providers, educate employees on the value of their benefits, and implement strategies to share the costs.
  • Consider the costs and benefits of implementing new technologies. HR can bring cross-functional insights about how tasks get done. As people and technology interact, HR can spotlight how staffing costs might be reduced, quality of work improved, and customer service enhanced.

    • Darrin Coon, SPHR, is President-Elect of Northwest Arkansas Human Resources Association (NOARK).