This week we hit the one year anniversary of the collapse of Lehman Brothers and the bailout of AIG. It’s pretty fair to say that the global economic infrastructure has been turned on its head with very few escaping the far-reaching effects of the downtown that ensued. And while Bernake has declared the recession itself it over, the recovery will be slow with unemployment expected to top 10 percent in 2010.
So what does this all mean for HR? First, most companies have seen a reduction in both voluntary termination and retirement rates leading most organizations to breathe a sigh of relief. However, this isn’t a time to rest on your laurels. A recent Wall Street Journal article stated that over 60 percent of employees are actively seeking new jobs. Perhaps this is because they fear they don’t have job security. Perhaps this is because with recent lay-offs, they are taking on more and more work for the same amount of pay. Perhaps lay-offs have caused morale to sink to an all-time low. The point is, now is the time to ensure you have the right Employee Value Proposition to ensure your top performers don’t walk out the door at the first available opportunity. Are you continuing to focus on development, build your office culture, and build careers?
Second, there is a greater focus on all types of cost, especially those related to the workforce. Do you understand the return on your human investment (Operating Profit / Total Compensation Expense). Have you developed a data-driven approach to human capital that uses workforce analysis to determine the root cause to develop targeted, specific interventions that allow for the greatest use of limited resources (including time, money and people). Do you conduct workforce planning to understand any risks your company faces in terms of strategy execution related to having the right talent available?
Have you examined your own internal processes to see where you could be more efficient? Infohrm members have found that investing in technology to automate reporting can save up to several million dollars per year and more importantly, free up employee time to perform the truly valuable task of determining what the data actually means and therefore, what to do about it.
So if you are realizing nothing has changed in terms of the way you are functioning within HR, it may be time to take a closer look and realize where you can make some changes that will add both immediate and long-term value.
Tags: analytics in a down economy, managing workforce costs, strategic human capital, Workforce Analytics, Workforce Planning