JOBS 💵 HR Department Costs Must Be Optimized to Both Withstand a Recession and Thrive Post-Recession, Cautions HR Advisory Firm McLean & Company
Friday, 20 January 2023 02:23.PM
- When a recession is looming, cost cutting can become a top priority. HR leaders must think critically about cost management to ensure long-term organizational success -
In response to the predictions of many economists who claim an economic recession is coming that will impact organizations across numerous industries, McLean & Company, the trusted HR research and advisory partner for HR and leadership professionals around the world, has released its blueprint titled Optimize HR Department Costs to Prepare for a Recession. The timely research is intended to help HR teams and leaders effectively prepare for a recession.
"Cost optimization needs to set an organization up for success in the long-term, which means layoffs and workforce reductions are often not the best options," says Rachel Stewart, practice lead, HR research & advisory services at McLean & Company. "In a recession, HR will likely find itself operating in reactive mode. While HR can return to proactive and strategic cost optimization opportunities later, when conditions improve, decisive action on reactive measures must be taken now."
When a recession hits, HR plays a dual role. Working with senior leaders on organization-wide cost-cutting initiatives is typically the dominant focus, but HR needs to prepare for cost optimization initiatives within its own department as well. This ensures organizational budgetary goals are achieved while also positioning the HR department for a quick recovery post-recession, supporting both short-term and long-term organizational goals.
To create a recession-responsive cost optimization plan, McLean & Company suggests that HR teams and leadership follow three steps while focusing on three key areas: HR initiative prioritization, vendor management, and HR workforce optimization. The three steps are:
1. Plan and define goals – The first step includes conducting a SWOT (strengths, weaknesses, opportunities, and threats) analysis, identifying the organization's business context and HR response mode, listing cost optimization constraints and parameters, and setting cost optimization goals.
2. Determine cost optimization initiatives – Step two calls for discovering HR initiative cost optimization opportunities, unearthing workforce optimization initiatives, and identifying vendor management cost optimization initiatives.
3. Prepare an action plan – The final step requires establishing a prioritized and aligned cost optimization roadmap, developing a communications plan, and creating an executive presentation about the roadmap that focuses on the essentials.
To prepare for cost optimization efforts amidst recession planning, HR professionals can download McLean & Company's industry blueprint, Optimize HR Department Costs to Prepare for a Recession.
SOURCE: Mclean & Company
- 16-Feb-2024 12:00 PM JOBS 👷♂️💵 New economic study released by Martin Associates - Close to 600,000 jobs supported by the Port of Montreal 👩🏭
- 15-Feb-2024 10:23 AM JOBS 👷♂️ Canada Announces Over $4 million to Support Critical Minerals Value Chains and Create Good Jobs in Ontario 👩🏭
- 15-Feb-2024 08:00 AM JOBS 👷♂️ Many Workers Planning to Change Jobs While Demand for Skilled Talent Continues 👩🏭
- 13-Feb-2024 04:23 PM JOBS 🚗🔌FOCAL Research Indicates That Canada Has a Lot at Stake in Transition to Electric Vehicles
- 13-Feb-2024 02:25 PM JOBS Black Canadians Feel Their Employers are Making Headway in Eradicating Anti-Black Racism
- 13-Feb-2024 10:23 AM JOBS 👷♂️ Bill 124 Appeal Ruling a Win For Workers, Ontarians 👩🏭
- 10-Feb-2024 10:29 AM JOBS 👷♂️💵 Air Canada Announces Scholarships for Aspiring Aircraft Maintenance Engineers at 7 Technical Colleges Across the Country 👩🏭
- 09-Feb-2024 12:00 PM JOBS 🧑🔎 Ontario Continues to Attract New Investments Across Key Sectors 💵
- 21-Jan-2024 08:00 AM JOBS 🧑🔎 217% Increase in the Number of Canadian Employers Using Apprenticeships to Fill The Labour and Skills Shortage
- 20-Jan-2024 10:30 AM JOBS 🧑🔎ADP Canada Happiness@Work Index: Workers' Happiness Dwindles as the New Year Looms