Navigating Recession: What Should HR Focus on When Budgets Are Tight?

Hi HR Professional,

I want to discuss, "What would be the best HR practice or HR role during a recession period," where each industry or sector is trying to cut/reduce/withdraw the admin budget, HR budget, overhead cost, and welfare cost to retain their balance sheet/profit same as earlier. Expert comments are expected for better HR practice.

Response awaited.

Regards :)

Recession is a wave that has come like an unexpected snowfall, which has blocked the path to grow. What I can suggest:

- Keep patience
- Stay in touch with employees
- Cut down costs
- Best time to chuck non-performing employees/areas
- Best time to nourish talent with extra responsibilities
- As an individual, learn about the nitty-gritty of cost-cutting
- Further actions depend on the industry
- Work more and learn more

Thank you

Well, I think HR has a very important role during a recession. Proper evaluation of the talents available within the company is crucial. Training the existing employees instead of recruiting new ones is essential. Additionally, proper communication between management and employees is key. Working on administrative cost-cutting and educating employees about it are important tasks.

Moreover, HR needs to be a good communicator and mediator to prevent grapevine discussions regarding the company's financial position during delays in salary and appraisals. Addressing the attrition rate is crucial, as employees may consider leaving their jobs if they perceive the future of the company as uncertain. Making employees aware of the recession and implementing measures to improve productivity are necessary steps.

HR should also focus on resolving conflicts between management and employees to ensure smooth operations. These are a few key roles of HR during a recession. Seniors, please feel free to add more points!

Best Regards,
Lavena

As Lavena said, we need to educate our employees about this. We have to retain the best of our talents, and this could be the best time that we would be able to learn more about employees psychologically. The safety issue that could creep into every employee's mind has to be handled effectively by the HR to retain the morale level of the employees. This would be the best time to learn more about people management skills.

Hi Lavena,

I agree with you fully. This is a most important aspect when an industry faces a recession, whatsoever sector it may be, a good thought to be perceived. Balaji 99403 50217

Dear HR Professionals,

The reply we have seen is not so interesting and effective because we are all HR professionals; hence, it is our prime responsibility to think accordingly. On one side, we are talking about cost-cutting, so how is it possible to keep the training costs on? If only internal trainers perform their jobs, it may not be as effective up to a certain level. Everyone is feeling insecure except for a few key individuals in any organization. Now is the time to keep morale high and stay motivated. If the health of the organization declines, it becomes very difficult to maintain these aspects. Some industries are directly affected by this wave, some indirectly, and some are taking precautionary steps.

I agree with what others have said, but I am looking for replies that truly influence and impact this forum, where everyone expects expert advice and suggestions. I hope no one takes this negatively and continues to post on the same.

Regards,
Arun
9818067206

Hello Friends,

I have a presentation on this topic that I would like to share with the employees if you think it's suitable. It's a file I received via email, and I have added some of my views, so I have locked it for edits. If anybody wants to edit it, please email me at "panshukla@gmail.com" so that I can share the password to open it. Frankly, I would like to know who has thoughts on adding or editing something in it. This way, we can discuss the exact views and perspectives.

I apologize, friends, I am not an HR person; I am from IT. However, I have a keen interest in this field, so my role here is primarily that of a listener. Since I have the file ready, I thought of sharing it with all of you.

Thanks and regards,
Pankaj :)

Hi HR Professionals,

I would advise sticking to your jobs for a while, at least until the first quarter of the year. This recession is not a real one. I believe that HR professionals will not be greatly affected by recessions. They will overcome it. My suggestion at this point is to not create a negative impression due to the recession. Wait and see.

Srinivas Rao :-P

Hi friends!

I think this is the best time to analyze. Analysis may be materialistic and non-materialistic. It can illuminate all probable areas to reduce costs. This analysis, conducted in a targeted manner, should also be communicated to employees on an as-needed basis to enhance their organizational citizenship. Therefore, a two-way practice will be implemented to reduce costs.

Lots & Lots of Regards......................🌟

Dynamic HR Actions During a Recession

Recession is the real time to act dynamically as an HR professional. We can upgrade and refresh training sessions for all white-collar as well as blue-collar employees. These training sessions may cover all technical, functional, operational processes, and behavioral aspects.

Employees will be engaged through training towards orientation and development.

Best regards,
Saroj Kumar Deka

Strategies for HR During a Recession

During a recession, there are several strategies that should be implemented:

• Identify underperforming employees and take necessary action.
• Raise the performance standards.
• Provide motivation to employees.
• Offer reassurance to employees regarding job security.
• Ensure a smooth process for handling terminations.

With Regards,
Vineet Deshmukh