Recession Provides HR Opportunity to Reinvent Itself Internally
The latest from U.S. Federal Reserve Chairman Ben Bernanke is that it's likely the recession has come to an end, but it's still going to feel like a very weak economy because credit conditions remain tight and the job market will improve only gradually. For HR, the upside of the down economy is opportunity to use the recession and slow recovery to reinvent itself, including how HR demonstrates its value within the organization.
At this summers’ SHRM conference, Laurence G. O'Neil, SHRM president and CEO told conference attendees, “The measure of our success is not only in how we perform when times are good, but when times are tough. … Change can happen to us, or through us.”
To that end, keynote speaker Jack Welch, former chairman and CEO of General Electric Company for more than 20 years, touched on the importance of marketing your HR department. “You have to have the guts and the stuff to make sure you're important in the organization,” he said. For HR professionals to be taken seriously, they have to deliver, Welch stressed.
One way to do that is to improve HR’s demonstrated value to the organization through internal “marketing.” HR must be perceived as dynamic and critical to the success of the business. Other departments will be more accepting of HR’s strategic value if HR “acts the part.” HR may need to reinvent itself from the inside out in order to be perceived as a valuable strategic asset
Undertake the following analysis in light of the recession’s impact on both the company and on the HR department itself. This provides a good starting point for communicating HR’s value to the rest of the organization:
- Does HR have a mission and vision that are consistent with the goals of the company?
- Has HR analyzed the productivity of the HR functions?
- Has HR set goals for performance or alignment with the corporate mission?
- Has HR discussed with other departments within the company how HR can serve their needs better, especially in light of the recession?
- Have quality procedures become part of the management strategy of HR?
- Has HR examined what, if any, functions could be outsourced and whether that is more efficient?
Communicate. “In a time like this, you have to communicate like you've never communicated before,” Welch encouraged HR. HR’s message within the organization has to be as clear as the message it brings to employees on behalf of the organization.
Embrace innovation. “Right now, everybody's talking about changes they're making in response to the economic crisis,” said Welch. “But you can only benefit from the crisis if you have a culture of innovation.” Generate innovation from within the HR staff. Train people to be creative and innovative and reward that behavior—both within HR and within the larger organization.
Build trust. Welch emphasized the importance of building trust -- trust of HR and the organization. HR may serve the business, but does the HR department really understand the business the company is in or the challenges that other departments face? Not only can HR better serve its customers if it understands their business, but also others will perceive HR as a valued partner if they can communicate effectively with HR about the business.
It is up to HR to move proactively within the organization and learn what others do, what their problems are, what their successes are, and what the challenges are and will be. HR’s perception and internal effectiveness will improve as a result.
Source: CCH Ideas and Trends Newsletter, Issue No. 701, August 2009, and CCH Human Resources Management HR Practices Guide, ¶171, products of Wolters Kluwer Law & Business.
<p>During his keynote address at the annual SHRM conference, Jack Welch, former chairman and CEO of General Electric Company, touched on the importance of marketing your HR department.</p>
/training_performance/recession_provides_hr_opportunity_to_reinvent_itself_internally.aspx