HR

Here is something we wrote for the Changeboard website...

Introduction

As organisations change their business strategy to respond to the current economic crisis human resources departments have become overwhelmed with day-to-day people management issues. And as senior HR managers become increasingly focused on managing consolidation, while having their own departments reduced, now is the time to outsource non-critical HR tasks, argues Claire Blackwell, Director, eSift.co.uk.

Industry Consolidation

The past six months has seen the focus of human resources mangers dramatically alter as their attention has shifted from planning for the future to focusing on the ‘here and now’ as HR teams struggle to keep up with day-to-day human resources issues.

In addition to the management of increased day-to-day HR activities, such as overseeing shorter working weeks, re-negotiating staff contracts and managing employee redundancies, many human resources teams have seen their own departments dramatically reduce, leaving senior HR managers without day-to-day administrative support.

The effect of the economic situation was felt in HR departments within the US approximately six months before the UK. The results have seen headcounts frozen and a dramatic reduction in HR professionals with many HR teams functioning with only a core staff. There has also been a focus on consolidation throughout many businesses and a direct emphasis on continually employee cost reduction.

As certain industries have begun looking to recruit, some HR teams have been able to recruit for critical posts. However, the changes that have taken place throughout the economy during the past six months have created a range of new recruitment challenges for HR managers. These include a higher number of applicants for every vacancy and a broad diversity of applications from potential employees offering a range of skills. With smaller departments and a lack of administrative support the task knowing where to advertise cost effectively and having the time to CV sift, screen candidates, plan interviews and respond to each applicant is now an overwhelming challenge.

New challenges facing the industry

As the human resources industry struggles to keep pace with the changes affecting it, insights by eSift.co.uk have shown the five most pressing issues human resources managers currently face. These include: -

Managing the existing workforce and offering re-assurance to the employees who will remain especially after a widespread redundancy process
Implementing and completing redundancy plans in a timely and professional manor
Change management within their own department and throughout the company
Reducing costs throughout the HR team
Looking at ways to outsource to specialists in certain areas, i.e. recruitment and training

Although each of these issues are likely to resonate with many HR managers throughout the UK and internationally, the issue of recruitment has been one of the most prominent areas highlighted. Further research into this confirms that management boards are allowing HR managers to recruit critical hire’s, but are tightly controlling recruitment costs.


Conclusion

There is little doubt that 2009 will be a tough year for the human resources industry. HR managers will be pressured to focus on strategic HR issues, but with a reduced administrative staff struggling to handle the day-to-day activities. The next 12 months will also see an increase of contract and interim workers within the HR industry as many organisations focus more on outsourcing.
Many organisations will recruit critical staff; and only after the HR team has audited current staff resources to ensure existing headcount is being used to its full potential. Any recruitment that does occur must be proven with a watertight business case and the successful candidate must meet both current and future business needs.


Overall 2009 will be a year of consolidation on the back of large-scale recruitment freezes.
HR Managers will look to get their house in order before embarking on any growth plans and
when they do they will use a recruitment method that delivers in a cost effective way,
reducing pressure on their internal HR team and outsourcing the non essential HR tasks.