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February 16, 2011

HR Recession-Proofing

Many companies look at consolidating roles in a lean economy and figuring out how to do more with less. But what about an HR department?

If your competition has less HR employees doing the same amount of work, there may be inefficiencies in your group. The Business Management Daily website has a few tips on recession-proofing your HR effectiveness.

Benchmark your company's past performance and future goals. This may show you areas that could use improvement.

Consider outsourcing some HR functions. Shifting leave-of-absence tracking or worker's compensation work to the outside may make fiscal sense. But functions like retention and recruiting, which help your firm manage talent, should be retained in house.

Roll together HR functions. Using metrics, find which areas produce the most work and see if employees can handle more than one set of tasks. For instance, if a staffer handles FMLA and those numbers are fairly low, consider adding relocations to their duties as well.

Explain your choices to HR staff. Perhaps it's better for your employees to double up on work than to risk downsizing during the crunch.

Learn from history. If your HR department faces busy times in certain kinds of work in certain times of year, prepare for them. If staffers are doing more work than usual, an increase, even a foreseeable one, can be disruptive if not prepared for.

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