How Is the Recession Impacting HR Jobs and What Does the Future Hold?

Hi HR professionals,

Recession is everywhere. All sectors are affected by it. Employees are losing jobs. Even HR people are losing jobs. 😢

My questions here are:
1) When will this situation change?
2) What effect will this recession have on the HR field and its future?
3) Will the importance of HR be reduced in the coming days as companies will have less manpower? Many companies are not retaining the employees who are leaving their jobs, etc.

Please, I expect valuable opinions from HR professionals here.

Thanks in advance.

Rajeev Dixit

Hi,

This is the answer for your question...

CIO's see economic slowdown ending by Dec
The survey of 467 CIOs across mid-sized & large firms in 18 industries found that their focus was shifting to better management of existing IT infrastructure from building new capacities, IDC said in a statement
Reuters
Mumbai: Most chief information officers (CIOs) of companies in India expect the current economic slowdown to end by December, according to a survey conducted by IT research and consulting firm IDC India.
While about 66% of respondents expect relief from the crisis by end-2009, IDC India said it expects the slowdown to extend and sees a revival in IT
spending after June 2010, due to the macro economic picture and a lag in IT buying.
The survey of 467 CIO's across mid-sized and large enterprises in 18 industries found that their focus was shifting to better management of existing IT infrastructure from building new capacities, IDC said in a statement.
Companies plan to spend about 20% of the total planned IT expenditure on new purchases in 2009, with the balance reserved for managing the existing set-up, IDC added.
The CIOs surveyed see software-as-a-service, business outsourcing and data warehousing, unified communications, virtualization and open source as the emerging investment priorities in 2009.
For 2009, investments in personal computers, servers and computer peripherals are seen falling 20-40% from last year, directly impacting hardware vendors and off-the-shelf software vendors, according to conclusions from the survey.

Source : http://www.livemint.com/2009/04/0618...n-end.html?h=B

Regards,

Prajith.S
Coimbatore

Dear Rajeev,

All it takes is a different approach to the situation. Such incidents do take place, and what we need to do is prepare a shield to be protective against the Recession bullets! We cannot ignore the situation. We need to face it.

Anyways, directly answering your question:

1) When will this situation change?

It has no "defined" period of time. Just see this situation - If you fall while running and get hurt, and if you are bleeding, what do you do?

A. Cry and ask when will this pain reduce?
B. Cry, then think about what can be done to reduce the pain, apply medicine on the wound, and take a pain killer.

Which one would you choose? The second one, right? I would go for option B.

So the recession will come to an end when we (both Corporate and individual) take measures to be recession-resistant! The initiative is from our end. With the way we remodel the previous structures.

2) What effect will this recession have on the HR field and its future?

It's a sad part when it comes to employers cutting down on HR. Recession is a time to safeguard your valuable assets. One of the most precious being "top talent" (I call these human beings with the matching skills and attitude, working for an employer).

If we don't give importance to this asset, then it's like an effort to pull ourselves down further. What do you prefer - staying on top? or Surviving? If you decide to stay on top - we need to invest a lot without expecting returns immediately. If you just need to survive - forget about being an Employer considered as the best to work for.

Remember - Industry as such may be in bad shape. But take individual company assessment. A lot are taking advantage of this time and hiring the best available in the job market.

I would not blame the Corporates alone because what value addition will HR bring in to face recession? That must be neatly described. It may not be in figures, but it will prove as a backbone for maintaining the perfect financial figures at the end of the Recession plague. HR has to reconsider the objectives of that function and can definitely add a lot of value.

For example, finance plays a major part in recession - not just in cost-cutting but also in helping the Corporate to identify Smart Investing. Likewise, HR has to remove the non-profitable area and think of another profitable area.

3) Will the importance of HR's be reduced in the coming days as companies will have less manpower? Many companies are not retaining the employees who are leaving the jobs, etc.

No, it will not if it's a wise company in terms of decision-making. Look at the Long term plan... Because, when things get back to shape, you need to be the best and strong employer ready to face any challenge. Our top talent must remain dedicated and not run away for a better salary. It has a lot to do with how we retain them and evaluate them.

Thanks!

Hi Rajeev,

Good questions asked.

For your 1st question, it has come to the knowledge that by the end of this year, the recession is going to end i.e., Dec '09. But the end of the recession does not mean that everything will be very favorable. It will take a few more months for the economy to get back on track.

For your 2nd question, the HR department will have to play a more strategic role in terms of training, development, employee engagement, and retention. They have to take responsibility for improving the performance of all employees. With the uncertainty created in the minds of employees, the onus of HR increases to ensure that their performance does not suffer. In the future, there is a greater role for HR to play in terms of increased manpower planning, effective strategies for coping with recession, motivation, and effective retention strategies, etc.

For your 3rd question, the importance of HR will not decrease. In fact, it will increase as they will play a major role in implementing strategies for acquiring and retaining their talent pool. In other words, HR will be responsible for making their organization the best place to work, especially post-recession due to the feeling of uncertainty in people's minds. Again, they will have to be responsible for effective performance management strategies.

I think I have answered 10% of your queries.

Regards,
Jeeta

First tell me, Rajeev, why did you want to ask this? I see you were pretty insistent on the replies. Any specific reason?

Regards,
TS

Hi tajsateesh,

I am seeing everywhere in my place many people losing jobs, facing pay cuts, and even many of my friends have lost their jobs or are working only four days a week in the industrial area. We too are experiencing delayed salaries (two to three months late). Hence, I want to know when all of this will be over, so I posted a question here.

Regards,
Rajeev