SnowdropKCS HR and Payroll Solutions, over 30 years' experience in the HR and Payroll industry

Top 10 tips in an age of austerity

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Times have undoubtedly been tough recently. With the Coalition Government introducing steep spending cuts and the CIPD predicting in November 2010 that 1.6 million jobs would go in the UK, 900,000 in the private sector and a further 725,000 lost in the public sector.

But in a time of austerity does HR have the opportunity to add greater value to business? What should HR’s priorities be in the downturn? And what should it do differently, if anything?

1. Be prepared

The shifting economic circumstances should be viewed as a chance for new opportunity and a real opening for HR to demonstrate how they can make a real difference. Organisations must remain open to changing conditions and a crucial ingredient in supporting company objectives is having the best internal talent in place, after all its employees who drive business growth.

Companies who are slow to react risk losing talent and consequently important business openings. HR departments who remain flexible can effectively guide their staff through change, plus they will impact motivation and support personal development - meaning they won’t need to look externally for new skills when opportunities arise.

2. Training

There aren’t many organisations that haven’t had to downsize and restructure, meaning most staff find themselves with new roles and responsibilities. To start with HR needs to go back to the beginning and define job roles, ensuring both the workforce and business structure are in the best condition.

And along with changing job roles comes a need for training, however this isn’t easy with recent budget cuts. Be creative with training, look to internal resources and knowledge sharing or try new channels such as e-learning. Categorise the business areas in order of importance, identify the leading talent and prioritise training needs.

3. Remain flexible

In the face of economic austerity, HR has the opportunity to show the many ways it can support the business. Hard times have seen the roles and responsibilities of the department broaden but HR must remain flexible and focus on resourcing the business in different ways.

Introduce new working arrangements that will positively impact working practices. Inspire a shift in basic attitudes towards working, considering flexible or part-time working and encourage sabbaticals.

4. Communication

During the recession HR took accountability for many unpopular business decisions. The result, aggravated by a little office gossip, is a sense of distrust across the workforce. HR needs to actively restore confidence in management and the employer brand. Developing open and honest lines of communication about changing conditions are crucial steps in gaining employee buy-in for future growth.

But internal communication shouldn’t just fall to HR to deliver. Regular face-to-face interaction with management provides a chance to deliver business vision and talk through the approach with employees.

5. Understand your workforce

The world is made up of different people and personalities and for HR it’s essential to remain receptive to that.

Look outside of HR for inspiration and enlist the use of marketing methods and new technologies to understand your workforce. Your employees are your customers and through changing times it’s important to understand customer requirements. Internal communications, engagement surveys and regular face-to-face employee/line manager catch-ups provide huge insight to individual needs.

6. Employee engagement

Between all the gloomy headlines, budget cuts and redundancies, it’s no surprise that employees will feel a little down trodden and unmotivated.

In hard times engagement is the buzz word, making the organisation attractive using inventive methods will encourage and get the most out of employees. How about regular team building activities? Or naming and awarding top performers? Consider what impacts both personal development and company interest and inspire drive.

Most importantly provide clear development opportunities to employees. These days it is the companies that provide career progression that are seen as good places to work.

7. Manage the negative

HR has had to contend with many negative aspects of the downturn, from reducing budgets right through to managing redundancies. These negatives, amplified with disappointment over pay and conditions, have culminated in increases in workplace stress, grievances and accusations of bullying and harassment.

For HR it’s vital to invest in leadership and management training so line managers are properly equipped to deal with difficult situations. Organisations need to have their best talent on the ‘shop floor’ supporting changing HR policies in their day-to-day interaction with staff.

8. Back to basics

The economic downturn demanded a back-to-basic approach for many in HR, with time spent on admin tasks during company restructures and redundancy. And whilst we’ve hopefully seen the last of the cost-cutting we can carry some of this primary practice with us.

The end of recession sees a switch to ‘hiring mode’, bringing a focus on recruitment, both internal and external, and an increase in staff turnover. This increase in recruitment calls for HR to effectively identify talent and fill positions quickly - ensuring that the best talent is in place to support changing business conditions.

Take advantage of newer, cheaper ways of identifying talent, such as through the use of social media.

9. Employer branding

Having the right employer brand plays a huge role in driving sustainable performance within a company and means you are more likely to attract and retain the best talent.

An effective HR department will be able to brand the organisation so it is inviting and attractive to the right people. Creating an environment in which people can build skills and expertise in new areas, and offering ways for employees to develop their careers, such as mentoring or secondments will support your employer brand when training budgets are under threat.

10. Invest in new technologies

Spending in times of economic austerity may sound excessive and often difficult to justify, but in order for HR to remain flexible and manage increasing responsibilities embracing technologies is essential.

HR technologies such as Self-Service and workflows can reduce costs and save time by devolving responsibility for administration to the line. These tools also make it easier for HR to engage with employees, allowing them to post new job opportunities, advertise available spaces on training courses or publish policies and information on things like sickness - making sure everyone is up-to-date with business communications.