The chief human resources officer (CHRO) and other HR professionals now play a more important role in helping CEOs manage workers now more than ever because of the issues of the pandemic and the economic downturn that has impacted businesses. This has given the perfect storm of cultural change, employee stress, business problem, and opportunity.
Efficient businesses consolidate their strengths during economic downturns to gain a competitive edge using a variety of repositioning techniques. The pandemic had a severe impact on every company’s most valuable resource—its employees, who are also HR’s main focus. Successful CHROs were well-positioned to lead what was basically a massive, unplanned adventure in the future of work.
The CEO’s New Contract with the CHRO
In order to elevate HR, it is necessary to completely redefine the role of CHRO, thus creating a new contract with this leader. Additionally, a new model must be adopted—a core group made up of the CEO, CFO, and CHRO. The CHRO will play a prominent role in corporate decision-making and will be suitably equipped for that functionality rather than just brought in to implement choices that have already been taken.
1- Faith in the Leadership
The most significant role is played by the leadership, and HR must ensure that it routinely and honestly communicates the company’s status, its perspective, and the actions they have planned to take to overcome the crisis and emerge stronger. The Leadership Team frequently depends on workers staying in their employment during tough economic times, yet the best employees choose to change jobs even when the labour market is unfavourable.
2- Promote Morale & Employee Engagement
Employee Engagement is constantly needed during trying times. The employees start to question the company’s future and start to worry about their careers. HR managers must actively monitor employee morale and provide managers with prompt feedback on what needs to be done.
The HR staff must conduct a fast employee survey if the circumstances warrant it. This may assist identify weak areas and allow employees to make adjustments that will help the business get through the challenging time. Human Resources must offer activities to help people get through such a time as well as concentrate on mindfulness and other quick, enjoyable activities so that workers may put more emphasis on their own growth.
3- Emphasis on Learning & Development
HR must be an active part while looking for new prospects for growth. After the downturn, the market can’t be anticipated to return to normal and everything will carry on.
In order for the business to begin growing right away, it must get ready for changes in the market and in consumers’ preferences and demands. Additionally, HR must start assisting in the search for possibilities and training staff members for the altered working environment.Â
Skills and Learning development must be a priority for the human resources department.
4- Encourage Innovation & Co-developing of Survival Skills
Employee suggestions for cost-cutting are most useful. Human Resources must devise a strategy to empower workers to hunt for cost-cutting alternatives and allow them the flexibility to test it out temporarily.
Because employees may use their own initiative to support the firm and can instantly witness the influence on business results, empowerment is a potent tool in trying times.
5- Revise Incentive Structure
The need to review and modify the pay structure frequently arises during a downturn. New components are usually added to the incentives during a period of growth, but nothing is ever taken away.Â
Employees typically experience hardship when incentives are reduced because they lose certain benefits and must work harder to earn the same amount of money as before. However, a thought-out change in incentives is necessary, to reboot.
6- Identify New Positions for Future Growth
CHRO must identify what additional roles will be required as part of the company’s expansion plan and what the company’s shortfalls are. They can respond to the question of how many and what additional roles will be required based on this. Additionally, to know what the financial consequences will be.
7- Prepare Several Options for Staff Reduction
However, HR must also be ready for negative news. And even if a downsizing strategy is not used, it is still better to have one in place. The Leadership Team must collaborate closely to decide the percentage of workforce reduction. The entire operation must be kept secret or else the team will feel insecure and anticipate the worst.
8- Review & Focus on HR Policies
Last but not least, CHROs should put what they preach into practice by reevaluating their own function to identify any changes that may be required to organizational forms or methodologies. HR roles, responsibilities, skills, and talents along with technological advancement can simplify the function and reach targeted levels of efficiency and effectiveness.
9- Laying the Foundation for the Future
It’s a challenging task, and CHROs must be more flexible than ever. The position of the CHRO is constantly evolving beyond hiring, compensation, policy, and compliance to that of a guardian of their people, accountable for not just their professional development but also for their safety, well-being, and assistance through trying times.
CHROs must have the information, the tools, and the plans necessary to effectively represent their employees.
