The HRM Function and Its Role in Recessionary Times

The Case for the Importance of the HRM Function even in Recessionary Times

Figure 01

In these recessionary times, it is tempting for the companies to cut the budgets of the HRM function and focus on cost control and trimming as a means of profitability. Further, with the squeeze on hiring by many companies, one of the key activities of the HRM function, which is the hiring, and on boarding activity remains frozen. Therefore, there is more the case for pruning the HR budgets. What adds to this research is the anecdotal evidence from many multinationals that seems to prove the hypothesis those excellent HR policies makes for a well-motivated workforce that can ramp up their performance to match the increased expectations of companies during recessions. The implications are that in case organizations want to do more at the same cost, they must focus on Procession cost cutting instead of on HR budgets alone. (Syed, 2020)

Handling Laid off Employee Separations

Figure 02

The second aspect of the HRM function during recessionary times is that it is often the case that the HRM staff are asked to handle the involuntary separations. These exits that are otherwise known colloquially as “pink slips” have to be handled with grace and respect for the employee instead of condescension and arrogance. However, the key aspect here is that the HR managers have to perform well under pressure and ensure that the outgoing employees are offered assistance with their job hunts for alternative jobs by giving them the use of the office space and the facilities for a week or so after their last day at work. The point here is that gestures like these go a long way in convincing the other employees that the company is not an opportunistic employer who is a fair-weather friend to them. (Eric, 2019)

Managing the Motivation Levels of Employees

Figure 03

Talking about the impact of layoffs on the employees who have remained in the organization, the HR staff also has the challenging task of keeping these employees motivated and not making them look over their shoulders periodically to check whether they are next in line to be laid off This is another of those tasks that the HRM function has to manage in recessionary times. Given the fact that many companies are struggling to stay afloat and which leads to resignations from key employees who do not see a future for themselves in the companies, it is important to remember that the HRM function must be bolstered rather than cut down to handle these unpleasant tasks.

References,

Eric, 2019. Laying off employees: 6 ways to ease the transition. Policies and procedures, 4(13), pp.41-47.

Syed, N., 2020. HR's role in a recession. [Online] (2.1) Available at: https://www.hcamag.com/asia/specialisation/change-management/hrs-role-in-a-recession/218747 [Accessed 06 May 2022].