Productivity Blog

As I got up on the stage to speak, I was aware that the audience, a group of CFOs, had just spent the past two and a half days hearing presentations on the negative impact of a down economy. The tone was serious and many commented on the lack of precedents from which to learn. The challenge I faced was to show how employee engagement is not only an important topic but also one that translates into bottom-line results in difficult times.

In many ways, CFOs and HR professionals face similar problems, asking, "What can we, in our profession, do to add value in these tough times and use our skill set to anticipate problems in order to minimize their impact?"

Cutbacks are one of the potential challenges both groups are facing. In a recent survey i4cp conducted in conjunction with HR.com on Reduction in Force (RIF), we found that 71% of the respondents reported that their companies have had a RIF in the last 12 months, and 39% foresee a RIF over the next six months. Among companies that conducted a RIF over the last 12 months, about half expect more reductions over the next half year.

HR has various obligations if a RIF is required. For one thing, HR can offer guidance and direction regarding whether or not the RIF proposed will really benefit the organization or will only bring short-term results. Which positions are being cut and what is the impact? Developing criteria and the business case for the best way to handle a RIF puts HR at the strategy table as opposed to just fulfilling a directive.

When a RIF is planned, it's also critical to assess the impact of the lost knowledge going out the door and to provide strategies to capture valuable knowledge. Companies are in a better position to retain valuable organizational knowledge if they prioritize positions according to 1) the degree of difficulty associated with replacing the people in those jobs and 2) the length of time needed to train employees in those positions. It's important to answer the difficult questions about what knowledge is essential to your mission, vision and strategy over the next 5 years and how you can preserve and reuse it. HR's taking the lead here can contribute to the long-term viability of the organization.

Engaging employees who remain with the organization is also critical. HR should work with various parts of their organization (particularly where there are cutbacks) on plans to engage employees and build trust in what can seem to be a threatening environment.

Some simple things, such as giving employees more control over how they work and where, can make a difference. Although teleworking is becoming an increasingly accepted practice, many companies are still resistant to allowing employees the flexibility to work at home or design their schedules. Another success factor in engaging others is communication, particularly from one's own supervisor. HR can assist supervisors and managers in how and what to communicate to build trust and teamwork. Experience shows that clear and frequent communication doesn't come naturally to some managers. Strategies on how to offer more opportunities for dialogue and address those "unspoken" concerns can go a long way to improving morale and engagement.

I'm interested in ways HR is taking the lead to offer their organizations alternatives and value added in our down economy.

Comments