It is very easy to focus on the negative aspects of operating as an HR practitioner when the economy has soured. Layoffs, salary freezes, and budget cutting dominate the headlines. These are the aspects of our profession that we anticipate the least and are often quite emotional. However, these times of change often present tremendous opportunities to elevate the role of Human Resources within your organization.

Management is often focused on ensuring costs are spent appropriately when revenues start to dip during economic downturns. This enables HR to demonstrate our ability to scorecard metrics that are meaningful to leaders. Tracking payroll spending, managerial span of control, and employee productivity are all key metrics that managers will look to HR to provide. This is also the time to develop strong workforce planning strategy that aligns with the business objectives that may be shifting in reaction to the state of the economy. We can also investigate shifting compensation and benefit programs to trim costs yet maintain market competitiveness. We can also ensure retention and development plans are in place for top talent within the organization to ensure key performers maintain motivation during the difficult times as well as once the economy begins to recover.

HR professionals need to also remember our role as trusted advisors. As difficult as decisions to lay off talent can be for those of in HR who execute those change plans, these decisions are just as difficult for executives. This is our opportunity to maintain a balanced, business focused approach to crafting solutions to cost structure problems that we all face when the economy changes for the worse.