AN ECONOMIC SLOWDOWN - WHAT DOES IT MEAN TO HR?

An article from Bersin & Bersin Associates

As we look ahead to 2015, many pundits are trying to predict the direction of the US and world economy. 

Programs that reduce costs will take on higher priorities.

• The "war for talent" is likely to become a bit easier. Over the last several years we have seen a tremendously tight labor market in many areas: technical professionals, sales and service personnel, financial professionals. As the economy slows, these forces will shift - so your energies can focus more heavily on carefully recruiting the "right" talent. While this has always been the top priority for talent acquisition, I think HR professionals can spend more time going back to the basics again 

        - looking at critical competencies, pre-hire assessments, and other tools to improve            the selectivity of your recruiting efforts. 

• The focus on multi-generational learning and collaboration will continue to be critical. If you are in a business which may be slowing, you will still focus heavily on maintaining your leadership pipeline and absorbing young workers. In facts if the economy does slow, many of the older people who were not planning on retiring yet may in fact do so, changing the dynamics of the aging workforce. In our upcoming High Impact Learning Organization research we will show you how dramatically organizations' needs have shifted toward the "network learning" model - almost 40% of the organizations we surveyed told us that they have a "significant challenge" in absorbing and training the "under 25 year old" workforce. These problems will be solved through internal social networks, mentoring, coaching, and other forms of non-traditional learning programs.

• When the business is slowing, line managers have less patience than ever for "generic HR programs." They want your help solving specific business problems: reducing headcount, reorganizing and training teams, improving performance of individuals and groups, and possibly restructuring compensation to deal with lower budgets. The "new performance management program" or "new succession management" program which is probably on your list for 2016 must be "recast" in words and values that sell its value to line managers. This is nothing new, but it will become more urgent if your business slows.