5 Things Your HR Team Can Do to Prepare for a Potential Recession
We’ve all seen the headlines. Forbes is sharing, “A Recession is Coming, and it Looks Familiar.” Bloomberg reports, “US Economy Facing Growth Recession.” Reuters columns are revealing, “Deep U.S. Curve Inversion Hastens the Recession it Predicts.” All these articles are bringing to light economist predictions that point toward the fact that we may be headed for a recession, and soon. With that, many human resources teams are asking, “What can we do to prepare for a potential recession?”
Today, we’re sharing some answers.
Leverage Analytics for Decision-Making
If your HR team isn’t collecting data and analytics to make decisions yet, it’s time to start. By capturing metrics like productivity, average compensation, retention rates, time to fill, etc., you can analyze what’s working and what isn’t working in the organization.
Analyzing all metrics before laying off team members will provide peace of mind that even if the worst-case scenario is playing out, you’re doing what needs to be done for the business. Plus, if you do have to lay off team members, there will be data backing your “why” that will help should any unfortunate events arise.
Now, in the best-case scenario, that data will help you save jobs and rework departments to move through this time of uncertainty.
Consider Contract Labor
Rather than filling positions, take a look at what roles can be temporarily filled with contract labor. For example, it’s easy to find freelance writers or bookkeepers, even contract software developers. These individuals are experts who will be able to provide quick, quality work without having to pay for additional employee benefits or full-time employees. This is perfect for when the problems you need solutions for don’t necessarily warrant a full-time role. Embrace those 1099 opportunities!
Embrace Transparency & Communication
It’s important that your employees don’t feel lost and in the dark when difficult times are on the horizon. In fact, that could lead to them jumping ship prematurely if they anticipate layoffs may be coming. Show empathy for their situations and allow gratitude to flow freely for all the work they’re doing.
Share all the information you have about company status, goals, plans, etc. This will help protect your company’s culture and reputation during the most difficult times. While it may be hard in the moment, it will surely lead to greater loyalty and future success.
Do an Operations Deep Dive
It’s time for a SWOT analysis! Take a look at what’s working, what’s not working, and what departments may be able to shift. It’s important to remain flexible and be open to creative solutions to keep team members on board, even if it means changing their position entirely. As long as there are transferrable soft skills, they will be able to master any new role and will appreciate the opportunity to stay on board.
Deploy HR Technology Now
Perhaps the biggest thing is paying attention to how you are leveraging and deploying your HR technology and software to save precious resources like time and money. Deploying tech like Workday and Rooster will set your team up for success.
If you want to learn more about how Kognitiv can help you harness the power of your iteration of Workday, claim 10 free hours of on-demand Workday support today. You can trust that our experts will save you hard costs, as well as improve your productivity by providing innovative solutions to enhance and maintain your Workday system. Our consultants have years of experience, in addition to formal and in the field training to get to the bottom of your core issues faster. We can help you prepare your systems, software, and team for whatever lies on the horizon.