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New Year, New Challenges
When the clock struck midnight on Jan. 1, 2009, people across the world made New Year's resolutions. For some, it's about doing some charity work, losing weight, quitting smoking. Finally learning to play guitar. But with a struggling economy, massive layoffs and shrinking staffs, what should HR executives have on their lists of resolutions for 2009? Fred Foulkes, faculty director at the Human Resources Policy Institute and a professor of organizational behavior at Boston University's School of Management, says HR leaders should first take note of today's dire circumstances. "It's a really challenging and depressing time for HR executives," he says. "They're doing a lot of things they don't like to do, like stopping 401(k) contributions, requiring employees to pay more for healthcare and shortening workweeks." With the country in a recession, HR is dealing with the "twin challenges," he says, of how to save money while also rewarding and motivating key talent. "Good people, regardless of state of the economy, have opportunities," he says. "The need for leadership development and succession planning doesn't go away." Foulkes says that HR leaders should resolve to keep their eyes on the economy and President-elect Barack Obama's proposals for an economic-stimulus plan. "They've got to be prepared for lots of proposed regulatory changes coming out of Washington -- employee relations, [the Employee] Free Choice [Act] and card check, and what the new health plan will be," says Foulkes. "They've got to be proactive with respect to Washington developments." When it comes to the EFCA, Foulkes believes it will pass, so HR should be ready for that eventuality. Peter Cappelli, director of the Center for Human Resources at the Wharton School at the University of Pennsylvania in Philadelphia, says companies should resolve to carefully analyze possible decisions. "Stop and think about the cost and benefits of all the important decisions you are making," he says. With many companies are struggling, HR executives may opt to emulate the practices at other businesses. That's a mistake, Cappelli says. "Try to block out what everyone else is doing," he says. "Unless you're like every other company, what they are doing is probably irrelevant." Focusing on healthcare, Dallas Salisbury, president of the Employee Benefit Research Institute in Washington, says that HR should resolve to make changes in their programs to reduce total-cost increases for both employer and worker. To do so, companies should make "changes that may reduce employee choice in order to ensure use of health promotion [and] wellness [initiatives], etc.," he says, so that companies can reduce the cost of future chronic diseases. While it is difficult for organizations to avoid layoffs during such a rough economic time, Salisbury believes that HR should try its best to hold on to people. "We [should] take actions required to retain the maximum number of our employees during this economic downturn, so we are ready for the upturn," he says. Thomas Otter, research director at the IT research and advisory firm Gartner in Stamford, Conn., agrees that HR executives should be ready for a solvent economy. "Deliver talent-management solutions that are relevant in tough times but that have an eye on future growth," says Otter. He also stresses that HR executives should make good use of analytics. "Learn to use analytics to make your point. Start by understanding the true costs of workforce reductions," he says. Otter also believes it's also important to continue thinking of the employer brand. "Take ownership of the employer brand," he says, "and become part of the conversation." January 5, 2009 Copyright 2009© LRP Publications |
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