Recession HR

Pete Baker

Senior HR Manager – Asia, Procter & Gamble, Prestige and Female Beauty

I believe the role of HR has been enhanced in two ways, and I think these will be permanent changes:

HR leaders have increased their contribution as business partners in an environment where resources are constrained. Perhaps in past recessions, HR managers focused on leading cost-saving initiatives. But lately, the best leaders have looked to ensure their organisations can do more with less; for example ensuring that business leaders are clearly communicating the right priorities to their organisations, eliminating work that doesn’t add value, and ensuring individuals are working in the most productive environment.

Secondly, the role of HR in talent management and succession planning has changed. The recession has meant that there is reduced attrition, but this also results in fewer internal promotions or transfers. In good times, HR leaders spent their time looking for people to fill many vacant roles. In the recession, HR leaders focused on identifying and developing high potential individuals and ensuring that the most appropriate assignments were available for them.

Johan van Vuuren

Director, HR, Datacraft Asia.

As external economic storm clouds gathered, Datacraft was determined to keep calm and intensify our Employee Engagement and “People and Culture” work. It was important to ensure that our people experienced career continuity in an internal environment highly supportive of their performance and personal development, making them feel engaged and valued.

The role of HR was definitely amplified during these difficult times because the HR team had to steel itself to stay doubly motivated to further enhance the internal environment and spur employees on. As a result, I believe the company feels a deeper appreciation of what the HR team is capable of. Examples of intensified activities include: stepped-up communications and briefings; an increase in learning and development opportunities; the use of technology to personalise learning; and a stronger focus on both tailored compensation and other work-life aspects such as our health promotion programmes.

The HR team’s “People and Culture” knowhow will continue to contribute towards Datacraft, capitalising on opportunities that may be presented by the ever-changing landscape of our business.

Tom Farmer

Vice President, Compensation and Benefits, Intercontinental Hotels Group Asia Pacific

Our perceived role has been enhanced in most cases. Employers realised that reducing people costs was unavoidable. They learned how sensitive and important HR work is. Going forward, employers will be more careful about staff size, and therefore more careful about selection, development, compensation and performance. The downturn has reminded them that effective people practices pay great dividends, good times and bad. Also, managers understand that how you treat people during tough times is just as important as making the right decisions. To make it permanent, HR must use times like this to demonstrate impact and influence, and not slip back to old modes.

Our corporate offices, HR has become more closely involved with the business, supporting various cost-reduction efforts and working very closely with senior leaders on improving dialogue with our people as we all try to rebuild excitement and camaraderie. In Compensation and Benefits, we have evolved policies on expatriate benefits and other areas to support talent goals more sustainably. These efforts also require “soft side” skills.