Role of HR in challenging times

Forty percent of global CEOs think their organization will no longer be economically viable in ten years’ time if it continues on its current course. That stark data point underscores a dual imperative facing 4,410 CEOs from 105 countries and territories who responded to PwC’s 26th Annual Global CEO Survey. Most of those CEOs feel it’s critically important for them to reinvent their businesses for the future. They also face daunting near-term challenges, starting with the global economy, which nearly 75% believe will see declining growth during the year ahead.?

During tough times, the role of the human resources (HR) function becomes even more critical for a company. HR is responsible for managing the company's workforce, which includes recruiting, hiring, and training employees, as well as managing employee benefits and compensation. When a company is going through difficult times, such as a recession or a major restructuring, HR plays an important role in helping the company to navigate these challenges.

One key role of HR during tough times is to help the company to reduce costs by managing layoffs, downsizing, or other cost-cutting measures (HR’s worst nightmare). This can include working with managers and employees to develop plans for reducing headcount, as well as providing support and resources to help employees who are affected by these changes. (*refer the last part of the article where I have mentioned the ways that HR can assist)

Another important role of HR during tough times is to help the company to maintain morale and engagement among employees. This can include developing communication and engagement strategies to keep employees informed and involved in the company's plans, as well as creating opportunities for employees to connect with one another and with leadership.

Finally, HR can also play a key role in helping the company to develop new strategies for growth and recovery, such as identifying new market opportunities, recruiting, and training new employees, and creating new products or services.

Overall, during tough times, the human resource function plays an important role in helping a company to survive and thrive, by managing costs, maintaining morale and engagement, and helping the company to develop new strategies for growth and recovery.

*Human resources (HR) can assist employees who are part of a layoff by providing support and resources to help them transition to a new job. This can include things like career counseling, resume-building assistance, job search support, and information on unemployment benefits. Additionally, HR can also help to communicate the layoff to remaining employees in a way that is transparent and respectful and provide resources to help them deal with the emotional fallout of the layoff.

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