PAGE-2: Not All New Problems Require New Solutions

Recently we have been writing to you about trying to stay ahead of the curve in these tough economic times. We have cautioned against concentrating solely on the present (although there are more than enough problems to solve) and delaying critical preparation for what lies ahead. Now is the time to clearly identify the problems your company faces or has been facing in this crisis, and outlining the options available to you to avoid similar situations again in a few years. We have some options for you to consider — but first let's put the issues in context.

In our most recent issue of Merit Guidelines™ (Feb-Mar 09) we talked about preserving institutional knowledge, developing high-potential talent, and getting feedback to support retention. In combination, these articles speak to the top concerns of HR professionals from now through 2015, according to a Key Priorities for the HR Profession survey from the Society for Human Resource Management (SHRM).

At the top of the survey respondents' list of concerns were talent management, succession planning, leadership development and managing the demographics of a changing and aging workforce. All of these issues, critical as they may be for the long term, have spiked in importance as we try to proactively manage in the whirlwind of what is happening in today's recession. It may seem that the game has changed to survival for many of you, but if you lose sight of the longer term issues that determine competitiveness and productivity then the question becomes, "…survival to what?"

The Convergence

Retiring seasoned employees and an imperative to develop the new generation to lead; the emergence of new technology sectors and shifting skill requirements coupled with drastically declining business levels and major force reductions — any one of these issues normally would be problematic by itself. But coming all at once as they have today, they create a much larger need requiring new thinking and planning to get from here to where we want to go. Or so it would seem.

But sometimes what we discover is that new thinking is relative. New situations often provide the re-expression of problems about which we have knowledge and for which solutions may already exist. With this perspective in mind, consider how you might approach the following three areas of concern:

• An Aging Workforce — We could be losing a lot of talent with the "boomers" retiring. We talk about it in terms of "brain drain" and the need to "transfer knowledge." But one unexpected consequence of the current economy may be the postponement of many "boomer" departures. This expands the importance for talent management efforts to include job redesign, mentoring, training and addressing life/work issues that will help you retain an employment relationship with this vital pool of talent for as long as you both agree it is practical. The way you go about employing or re-employing your "boomers" — either as part-time, on contract or through an agency — may be different, but being able to count on them might feel very familiar while also being very necessary.
  
  Isn't it interesting though that some of the newest generational members of our workforce have desires and needs similar to the "boomers" when it comes to how they want to work, and placing a heavy emphasis on life/work balance? Mentoring and training may become reciprocal expectations for both our older and newer generations of employees with flexible schedules and virtual office arrangements becoming much more mainstream.
  
  
• Concerned about getting work done and when you should hire again? — A great deal of work has not gone away while the number of employees has dwindled, the result of layoffs. Yet all the while costs are being cut the most sought-after goal is to increase business volumes soon so we can get on with recovery! And so the dilemma becomes how long you can get by before spending the money to hire full-time replacements. A concern, which should be as prominent for you now as when business levels spike again.
  
  Flexible staffing has been around for some time, however it is extremely well-suited for times like these. Contract hires are a realistic way to replace specific skills lost or to bring in new skills or knowledge not present before. The temporary employment of experienced leaders for short-term projects, or utilizing a third-party payroll home for temporarily returning former employees who may not fit the category of bona fide independent contractors, makes a lot of business sense in unclear times. All are flexible staffing approaches that can help you meet business goals now and well into "recovery" and more.
  
  Not only do these strategies provide flexibility they also permit better expense management. With the use of these approaches, fixed costs can be shifted to variable costs, which gives you greater control in this economy.
  
  
• Succession Planning — On some days succession planning means finding an immediate replacement for a key contributor who has unexpectedly left. In sustainable organizations however, the concept has a longer-term horizon to it. Nevertheless unwanted turnover is an issue and waiting until it happens to decide what to do about it is evidence of poor planning.
  
  Knowing how people feel about their employment relationship with you, particularly key contributors, is vital to maintaining a vital organization. Most of the turnover or force losses to date in this recession have been management initiated. But the real problem with turnover of key talent hasn't even begun. Wait until business opportunities grow. For some, as business picks up, the next crisis may be how to survive key players leaving because they choose to.
  
  Once that happens, contract hiring can help in the interim and can serve as a critical bridge until a direct hire can take place. But if you are not prepared to quickly, effectively and efficiently manage the search and selection process for your full-time replacement, don't lose any more ground — plan now to get help.
  
  In the longer-term, succession planning is developing your workforce with growth experiences to ensure that individuals are prepared to step up when needed. Not just at the top but in key areas throughout your organization. And don't forget the importance of communications so that those being developed know what your intent is for them — before they leave in search of better growth opportunities that they didn't know to expect with you.

Who's Responsible?

HR has a major role to play in all of these strategies and approaches, which includes ensuring that top leaders understand the interrelatedness of these issues and how the business will be impacted depending on the decisions you make — or don't make.

It takes time, clear thinking and perseverance to plan ahead and take advantage of such approaches while also dealing with tough issues now on a daily basis, but not spending the time is bad long-term strategy. It was suggested in the SHRM survey cited earlier that an additional role for HR during these times is that of "competency steward," a vital role for all times really, because it is through a competent workforce that you build sustainability.

There will be other "ups" and "downs" beyond the period we are in. Your goal should be not to just survive the next "swing," but rather to thrive in them all. With preparation and perspective this is possible. Planning now for the next business cycle will help you mitigate the negative and accelerate the positive elements of whatever lies ahead.

Merit Resource Group has been supporting the business and the professional HR communities in Northern California for the past 20 years. During that time we have helped numerous companies succeed by providing expertise as they needed it, and by supporting their changing business goals. Contact us if you would like to discuss the challenges you or your organization may be facing today. We will be happy to share what we have learned that could help.