Post-recession Human Resources
The financial crisis and the recession changed the priorities of Human Resources. Before the recession we were in a tough war for talents on the job market, right now, we can easily choose from many job applicants, who ask for a lower salary. We face different HR challenges to stay a successful organization.
Human Resources has to introduce the efficient cost saving initiatives and it has to build a proper HR Controlling function as it can measure the results of the HR Processes and value added by human capital. HR is co-responsible for setting the expected performance results and it has to deliver the proper human capital performance measures to managers as they can monitor and manage their results.
Human Resources has to provide the organization with the performance benchmarks, both internal and external as the managers feel the competition inside the organization. HR is also the part of the internal competition for the efficient cost cutting and it has to send its proposal to managers to identify the best areas for the cost cuts. HR has to be proud to say, what costs are not necessary and the organization can survive without them with no influence on the services and products.
HR has to invest the costs into defined groups of employees to keep the performance and know-how inside the organization. Not all the employees can benefit from the HR initiatives, just the selected employees can feel the real value added by Human Resources as they are the key resource of the success for the organization. It is a big change for many HR Professionals, but no organization can afford to educate all employees, the investments have to be selected and précised.
The HR has to understand it cannot invest in all employees of the organization and it has to develop the proper tools to select the real talents in the organization, who have a chance to grow into the future managers and leaders. Other employees have to take care of themselves as they are not successful in the internal competition.
The post-recession world is about a tough competition among the organizations and the employees are the part of this competition. The HR sets the internal rules of the competition and the employees have to succeed or they have no chance to become the managers.