Creative HR solutions for tough economic times
| Date | 17 April 2009 |
| Pages | 24-29 |
| DOI | https://doi.org/10.1108/14754390910946549 |
| Published date | 17 April 2009 |
| Author | Bill Thomas |
| Subject Matter | HR & organizational behaviour |
Creative HR solutions for tough economic
times
Bill Thomas
Abstract
Purpose – The purpose of this article is to discuss creative HR solutions that can support broader
business strategy in a challenging economic climate. It also highlights the need to adopt a proactiveand
creative approach to avoid simply reducing the level of service delivery when budgets are reduced.
Design/methodology/approach – The article includes five typical scenarios, which illustrate creative
solutions that can be used to address challenging HR issues in tough economic times. Twocase studies
are also included to demonstrate the potential for improving HR service delivery.
Findings – During difficult economic times, the HR function is likely to be faced with the double
challenge of delivering a significantly increased level of support for the business but with a reduced
budget.
Practical implications – The article offers guidance on how to succeed in difficult economic times.
Originality/value – The value of this article lies in its illustration of how being prepared to consider
creative HR solutions can deliver practical, tangible and sustainable benefits to the wider organization,
even during challenging economic times.
Keywords Human resource management, Service levels, Economic depression, Outsourcing,
Recruitment
Paper type Research paper
When the dynamics of the world economy change and periods of economic growth
are replaced with decline and uncertainty,the implications are far reaching; this we
all know. When change start knocking at the door of HR it typically does so in the
form of supporting cost reductions in the business, followed shortly by the challenges of
delivering services with reduced access to cash, revenues and profit margins.
Tough economic times focus minds on the need to adapt and it is vital not to overlook the
potential that the HR function has to strategically support the wider organization in this task.
The risk of failing to think strategically is of course increased due to the pressures on
operational HR activities during turbulent times, but thinking both creatively and strategically
can deliver significant sustainable benefits.
The HR function needs to be prepared to manage greater focus on people strategies and,
specifically,an ever moreentrenched requirement for two potentially conflicting HRdrivers –
reducing costs and raising service levels. The variety of creative HR solutions available to
the world’s organizations in challenging circumstances are illustrated through the following
five sample scenarios, none of which propose a knee jerk reaction to reduce costs simply by
reducing service delivery levels. They are based on specific engagements in which
EquaTerra has advised clients.
Scenario one: strategy of sustained growth
A company has grown both organically and through acquisition in recent years and has
been following a strategy of sustained growth in multiple countries. This affects the
PAGE 24
j
STRATEGIC HR REVIEW
j
VOL. 8 NO. 3 2009, pp. 24-29, QEmerald Group Publishing Limited, ISSN 1475-4398 DOI 10.1108/14754390910946549
Bill Thomas is based at
EquaTerra, London, UK.
EquaTerra offers expert
advisory services to
organizations around the
world.
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