Entries Tagged 'General HR' ↓

HRMAdvice.com

I have decided to spent few bucks and I started a new website about Human Resources.

Corporate Culture is the Competitive Advantage

Corporate Culture is a very important aspect of the organization. Corporate Culture is a complex of corporate values, behavior of employees and management and leadership style inside the organization.

Continue reading →

How to motivate employees

It was a hard discussion with one top manager. He wanted to motivate his employees and immediately provided his department with the solution. He was ready to decrease the base salaries and to increase the variable part of the salary.

Continue reading →

HR readiness for economic slowdown

Today, we live in a bit strange world. The economists are not able to say, whether the world economy will run at the full speed or the economic slowdown will appear to return some balance into the economies of many countries in the world. To make things even worse - the real economic slowdown did not appear for more than 20 years and the companies did get fat a bit over the period.

Economic Slowdown

All the HR Processes in successful organizations are set to support the growth of sales, volumes and net income, but they are not ready to support the moments of cost cuts, lay offs and many other action needed during the economic slowdown. The real HR Professional who remember the times of the economic slowdown are very rare on the market. People working in Human Resources are not aware of the real need to control and manage personnel expenses and the line management has no experience as well.

The Performance Management and Career Development Processes are set to identify top talents, their potential to identify the opposite side of the performance curve is really limited and they usually fail when trying to make it working. The Compensation and Benefits are usually calculating how to increase the overall personnel expenses budget. The HRM did not play a cost cutter role for quite a long time and they have no precedence.

Are you sure, your HRM is able quickly:

  • provide the business leaders with a detail personnel expenses budget breakdown identifying the biggest potentials to cut
  • provide the business with the detailed analysis of benefit portfolio with the potential cuts
  • provide with a quick list of low performers
  • provide the business with processes and procedures to decrease the number of employees
  • demonstrate a courage to send important and difficult messages to employees
  • the internal power to make difficult decisions about employees

Honestly, HRM is not fully ready to make difficult decisions as HRM was more oriented to fight talents on the market. But this can change quickly. The HR Professional should quickly get the knowledge to help keep the talents inside the organization, but they should be still able to decrease the costs of the company. It will be a real challenge, when the economic slowdown will come.