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HR AND THE RECESSION

During the many years of our relationship with the HR community, we have observed the function’s growth from a relatively static, record keeping activity to a performance oriented and business integrated role. At least, that has been the situation in most large and more sophisticated enterprises.

At this moment, the economy appears to be on the cusp of a possible recession (still being debated by some economists). If a genuine downturn does occur, to what extent will HR be affected? What brings this to mind is a recent Wall St. Journal article (4/7/08 pg. B-4) concerning a massive reduction of HR at a major US corporation.

Our perception in years past, during a business downturn, was that two segments of HR were adversely affected. One was recruitment, as new hiring lost momentum. The other vulnerable area tended to be training and development, an activity that could be deferred.

We don’t see that happening at this juncture. Recruitment has taken on a more complex, strategic form as talent acquisition. Looking not just at immediate needs, but long range planning. Training has also morphed into a constant and ongoing necessity for internal development, which cannot be neglected if the company is going to stay competitive.

Our assessment is that despite an occasional aberration, such as the WSJ news item above, strong demand for competent HR professionals will continue.

Please feel free to send my your comments regarding this article.  I can be reached at the following link: charles@woodburypersonnel.com