Froud - Finding HR's Place in Economic Recovery: A Practical Strategy
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The document discusses the role of HR in assisting economic recovery from recessions. It outlines that [1] HR must understand economic recovery and shifts by studying demographics, business trends, and consequences of recessions to develop an effective strategy. [2] HR must change its behavior by building credibility, networking, gaining expertise in areas like contracting, and running HR like a business. [3] During recovery, HR should lead in managing contracts, keeping costs low, and thought leadership on workforce issues while maintaining compliance.
Froud - Finding HR's Place in Economic Recovery: A Practical Strategy
- 1. Finding HR's Place in Economic Recovery: A Practical Strategy Helen Froud MBA CMIPD MD, Froud Consultancy Ltd. Scotland
- 2. Aims for today • Understand and analyze the nature of economic recovery and the role of HR in assisting this recovery; • Plan an HR Strategy to maximize recovery; • Understand how we must shift our behavior to maximize our performance during recovery.
- 3. HR is Global •The catastrophic economic events since 2008 have affected the entire developed world •HR is now a global profession with transferable strategies, practices and professional goals •We can therefore begin to predict how to influence this economic recovery
- 4. Understanding Economic Recovery • What happened in previous recessions? • Predictions based on the past – sound or not? • Demographic and economic shifts and cycles • Understanding the future • Influencing the corporation
- 5. What happened in previous recessions? • Four employment slumps since 1970 • This is the worst since the 1980s • Florida currently more seriously affected • UK and Western Europe always follow suit • Other major economies have linked cycles • Each slump has had distinctive labor-market characteristics and implications for the labor force
- 7. Is it sound to project forward based on past experience? • Some changes are cyclical • Some labor market changes are predictable • HR has sound experience in dealing with the last two decades of profound organizational change
- 8. Demographic and economic shifts and cycles • HR must speak the language of economic forecasting • We must study the demographics locally, nationally and regionally • We must understand macro-level business trends (e.g. offshoring) and translate into strategy
- 9. Understanding the consequences • Changes within the HR profession • Changes within the corporation or entity • Changes within the labor market as a whole
- 11. Change within the profession • Recruitment skills decay • Loss of meaningful talent management • Loss of career paths • Loss of expertise to consulting and beyond
- 12. Change within the corporation/entity • Outsourcing/restructuring • Expert skills gap • Managing contracts and contractors • Managing morale and livelihoods • Loss of direction and momentum
- 13. Change within the economy • Subsisting trends continue – increased diversity, migration, aging, portfolio jobs • Some trends have peaked – some female economic participation rates, birth rate decline in some developed economies • New trends are emerging – organizational alumni and core contractors, loss of support professions.
- 14. Professional Behavior Shifts • Our transactional days are over – but the IT systems must work properly • We may work within or outside the corporation or entity; we must move sectors to gain broad expertise • We may become HR+ specialists • We must understand contracting better • How good is your market intelligence?
- 15. Practical tasks for now • Build your business credibility • Network or there’ll be no tomorrow • Check your business continuity plan • Archive/improve your expertise • Make sure your leavers would rejoin or buy from you
- 16. Action through recovery •Lead the way in managing contracts •Lead the way in keeping it lean •Seek out more cost-effective hires •Seek thought leadership on people issues •Compliance is essential but it’s not why we’re here •Run HR like a mini-business – you may have to do it for real one day!