HR Managers need to show their mettle in tough times

Increasing fears of a long recession across the UK economy means that those experienced enough can look back to the early 90s when they were reducing workforces and training budgets and recruitment freezes were the norm. Many organisations, not just in the financial sector, are feeling the pinch.  Whilst the demise of the big names like Woolworths, Nortel and Lehman Brothers hit the headlines, the impact on their suppliers doesn't get a mention.

Whilst there is doom and gloom every time one switches on the television or opens a newspaper, there are encouraging signs that business has learnt clear lessons from past downturns. The obvious reaction to cut costs is tempered by clear memories of past blips in the economy when leading firms cut back staff and training too quickly, leaving themselves short of the right people when the upswing took place.  This had a direct impact on the skills shortages we experience in several sectors today.

In a downturn, the HR function needs to be fine tuned and imaginative rather than act defensively. Applying innovative HR management alternatives will help ensure survival, but equally importantly, will ensure a company survives with its most valuable resources intact and ready to drive growth.

There are strategies to balance talent retention versus cost cutting that work across all sizes of business. The key is communication with employees.  Finding the time to explain clearly and consistently what is happening and why, encourages trust and loyalty. Instead of making drastic headcount cuts, alternatives such as reduced working hours, retraining and upskilling will not only win the loyalty of employees but help companies get back on track.

Retention is becoming the buzzword of this recession – ignore it at your peril!  For help on your retention and redundancy strategies call Katherine Wiid on 01780 484910 or visit www.recrion.co.uk.  Take the opportunity to find out how engaged your staff currently are!