Canadian HR Reporter

ere's a volatile mix of elements at work for many organizations right now. Market and political uncertainty, record-breaking M&A activity and a nonstop on- slaught of disruptive technologies combine, in many cases, to create some uncertain times. How HR can support an organization through – and out of – tougher times By Melissa Campeau ECONOMY, INTERRUPTED There's a volatile mix of elements at work for many organizations right now. Market and political uncertainty, record-breaking M&A activity and a nonstop onslaught of disruptive technologies combine, in many cases, to create some uncertain times. It's not all bad news: "For some organizations, that's an exciting backdrop for change," said Madeline Avedon, associate partner, Talent, Rewards and Performance with Aon Hewitt in Toronto. "For other organizations, it creates unease, and HR has a very signifi cant role to play in managing all this uncertainty." Downturns usually mean a shifting of gears for HR. "Typically, HR departments get a lot of pressure to fi nd talent," said Franco Girimonte, associate principal with the Hackett Group. "But when they're going through an economic downtown, there's a constant pressure on HR to reduce the overall talent cost." Badar Khan, a senior HR professional with BP in Pakistan, agrees. "Generally, the people domain is the fi rst area affected when things go wrong," said Khan. HR's job in a downturn, of course, is much broader and more strategic than simply managing layoffs. "HR's role in these times is about helping companies achieve profi table growth during uncertainty," said Avedon. "How do they ensure people remain in their roles and keep generating revenue for the organization? This is the question HR must answer. It's not just about taking short-term actions, but about focusing on the longer term. Eventually, the external factors that organizations don't have as much control over will change, and they will need to be in a position for growth." HR as a business partner "If they're not already, HR should be playing a pivotal role in organization strategy execution," said Khan. "HR as a business partner becomes invaluable at this point," said Girimonte, who points out that business leaders make decisions based on information and insight, and that fi nance, marketing and other departments come to a strategy table with quantifi ed data. "HR has always been challenged in that regard because their information capabilities around analytics have been very limited." Now, though, that's beginning to change as HR makes increasing use of analytics and can answer questions about what's being spent on employees, what the critical roles are, what potential impacts of cutbacks might be and more. Training, engagement and productivity Data can help HR quantify the value of many things, including training and development programs. That's important in belt-tightening times, since they might be seen as an "extra" in need of trimming. "HR needs to have comprehensive workforce analytics to justify their programs," said Khan. "The bottom line is that everything HR does will be scrutinized during uncertain times, and HR needs to be vigilant in every hemisphere of their business and ensure all initiatives are supported by a cost-benefi t analysis." While each organization will determine what training aligns best with its strategy, some programs have universal value. "We're seeing a lot of emphasis on leadership development training because organizations know they need to drive a certain culture," said Avedon. "They are focused on creating the right behaviours within their leadership population to drive the right culture forward, in line with the business strategy. During times of change, that's even more important because you want to ensure there's a consistent employee experience across the organization. That's diffi cult to do if leadership isn't aligned." When an organization's future is uncertain, culture and engagement can suffer – and it can happen quickly. "It doesn't take long for employees to become disengaged during times of uncertainty," said Avedon. "Reengaging them can take months, even years, depending on the damage done." Rumour mills – quick to pop up when there's a void of information – pull employees away from their work and impact the mood of an organization. "HR is the primary communication channel for keeping employees informed and ensuring morale and productivity in the organization don't go down," said Khan. "It's a daunting task and easier said than done. HR can start by providing honest, timely and accurate information. Never create any false expectations and reassure your top contributors, at the right time." "Among companies who remain successful in a downturn, the biggest common thread is a strong internal communications plan," said Chelsea Newton, executive coach with Talent Formula, and an HR professional with a Calgary-based oil and gas company. It's important for HR to keep an ear to the ground and listen for any misinformation. "Once you catch wind of rumours, you need to snuff them out as quickly as possible," said Girimonte. The best remedy, he points out, is some fundamental information. Communication, of course, goes both ways. Avedon points out the importance of regular pulse checks to fi nd out what's really going on. "Find out how employees are feeling, what their needs are, how their expectations are hanging, and how things are shifting for them," said Avedon. "In times of uncertainty, we need to be able to do what we call 'continuous listening.' This is not necessarily asking questions about engagement, but asking questions around change readiness, and getting a sense of how employees are feeling, and whether they have the information they need." Better communication and better engagement are linked to improved retention, and retention is a key concern during a downturn. "It's not the low performers you tend to lose in a bad market," said Newton. "It's your top talent – the ones you rely most heavily upon."

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