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Latest NewsHR strategy

HR sticks to original strategies despite economic downturn

by Tara Craig 26 Jan 2009
by Tara Craig 26 Jan 2009

EXCLUSIVE

The majority of HR professionals are playing a dangerous game by sticking with their original strategy this year despite the economic downturn.

A survey of 336 senior HR practitioners by consultancy TalentDrain found just a third (31%) were adapting their approach and putting a renewed focus on existing employees.

Organisations which had changed their HR strategy were concentrating efforts on existing staff, with 72% giving increased priority to organisational management, 67% to communication, and 54% to employee engagement and retention. Recruitment is becoming less important – fewer than half of HR professionals are focusing on it.

Anthony Miles, director of research and development at TalentDrain, said: “Without being pessimistic, I hope these results don’t mean that HR departments are being too reactive.“

Miles predicted that if the survey was re–run in six months’ time, a far higher proportion of HR departments would have changed their strategy.

HR might be proving slow to adapt to the realities of a recession, but management is moving swiftly to cut costs. Half of the respondents have seen their budgets trimmed for 2009, with one in eight suffering a cut of 25% or more.

Organisations experiencing budget cuts werereducing the priority they allocated to most HR areas, with the exception of employee engagement and retention.

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Tara Craig

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