Measure HR Efficiency in Recession to Keep Track of Employee Mood and Performance

It becomes even more crucial to measure HR efficiency in recession periods so that a smart, timely HR response can be made considering employee performance and morale.

Left and right, we keep hearing of even the biggest companies having correspondingly big troubles with the financial crisis. When it first started showing itself, the crisis was, of course, startling and worrying, but as it now wears on, people are starting to turn to the more practical matter of weathering it. One of the crucial things to realize is that it is very important to be able to measure HR efficiency in recession accurately. Despite the possibility of drops in sales and other record financial lows, it is not the Finance or Accounting departments that are vital during recessions at all. Instead, the Human Resources department is the one that has to act fast and act well in order to give the organization the best chances of making it through the crisis with minimized damage.

In any crisis, an organization is in grave danger of losing its best people. This is because news of impending crises and downturns always has the effect of worrying people, making them reconsider their employment options. The best people, being usually the most qualified, are the ones with the most leverage and drive to look for and find what they might think are better opportunities elsewhere. This is why the HR department must act fast to reassure their top performers that the organization will continue to compensate them as fairly as possible during the recession. The HR department and the management should be able to present a unified front and a smart, well-justified plan for the entire organization during the crisis.

The goal, of course, is to increase employee confidence in the organization as well as to boost morale in general. Recessions call for extensive communication with the employees, keeping them up to date with the most important decisions and developments. Leave your employees feeling out of the loop, and pretty soon, inevitably, their worries and doubts will start to surface again. Not only would this lead to worsened performance due to anxiety and nervousness, it might even lead to resignations, as the most worried employees might decide to try their luck elsewhere. Employee dissatisfaction is a very probable result that is very undesirable. This can be avoided entirely by ensuring that everyone knows about all major decisions and the justifications behind them. Even unpopular measures, such as raise reductions and salary cuts, might be taken better than expected if they are explained clearly and with full honesty.

Keeping track of HR efficiency is thus important, as it will also act as a barometer for determining the mood of employees. Generally, higher efficiency will point to better moods, while lower efficiency would indicate that something needs to be done. Measure HR efficiency in recession periods to keep on top of the organization’s internal atmosphere. This data will also, of course, be helpful in deciding which employees need to be retained as much as possible, and which ones could conceivably be let go. Weathering a financial recession is by no means going to be easy and a good HR response is the key.

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