Network - Spring 2010 - (Page 31)

O Feature HR and the Post-Recession Landscape By Andrew Ilardi mployers are challenged with hard decisions during challenging economic times. While the recession has started to ease, questions remain. “How did employers retain top talent?” “How did they engage employees and keep morale high while the world was in crisis around them?” “How are HR departments reacting to the new post recession landscape?” A review of literature and an interview from an HR professional gives us an understanding of how HR may be changing. Employee retention starts at the core of the business’s values. Several buzz words have been used to describe a match between an employee’s values and an organization’s values/goals. “Person Organizational Fit” is the most popularized. In 2007 McCulloach & Turban conducted a study supporting that a strong match between an employee’s values and the organizational values/goals was able to predict retention rates. Other research studies support this view as well. Some argue that “Person/ Organization Fit” begins with hiring the right person for the right job. Most Human Resource offices have selection procedures such as semi-structured interviews or competency exams, and protocols that ensure the right candidate is hired. A strong alignment between the person and organization is vital in retaining employees. The benefits of having a candidate fit the organization’s values/goals are financial and strategic. According to Wayne Mondy in his book Human Resource Management, replacing full-time private sector employees can cost at least 25% of that employee’s total annual compensation. Additionally, depending on the nature of the position and talent required, it can cost up to 150% of total annual compensation. This number grew exponentially when recruiting for highly talented individuals. Furthermore, talent takes time and money to develop. Developing employees then consequently laying them off is hardly cost-effective, but this is often ignored. Laying off workers should be a last resort, as every worker is the backbone of economic prosperity. Employee retention starts at the core of the business’s values. However, because companies are typically ill-prepared, layoffs are a quick fix to improving bottom line. Why is the alignment between personal and organizational values necessary during a recession? Most workers during a recession are involuntarily laid off, but often companies look to steal top talent from one another. We know that Microsoft has tried to hire Google engineers. Just recently hired Google’s top chef. Bidding wars occur frequently and mostly for top talent and while these individuals are most likely not going to be laid off, they can just as easily be hired away. A strong fit can ameliorate competing offers and engagement can solidify the deal. Given that most companies were forced into laying off thousands of employees, how could they keep top talent while keeping all employees engaged and motivated? Dr. Spreitzer, a professor at the University of Michigan, identified four dimensions that contribute to engagement: O 31 NETWORK O Spring 2010

Table of Contents for the Digital Edition of Network - Spring 2010

Network - Spring 2010
Table of Contents
HRIA President’s Message
Recognizing Excellence in HR
Alberta HR Conference
Economic Crisis or Golden Opportunity? You Decide.
Advancing in the Right Direction: Maintaining Employee Optimism During Recession
Re-energize Your Employees Without Breaking the Bank
HR and the Post-Recession Landscape
Is the Workforce in Limbo?
Current Economic Conditions Breed Good Management
Learning Agility in Times of Change
Preparing for Economic Recovery – Alternatives to Terminations
The HR Office
Index of Advertisers

Network - Spring 2010