Sydney, Australia 10 June 2020: A topical new whitepaper has advised that human resources professionals should be relying on data and insights to manage the impacts of a recession instead of seeking to rapidly reduce headcount.
The latest whitepaper from ELMO Cloud HR & Payroll recommends that HR professionals avoid a “slash and burn” approach to managing labour costs in the wake of reduced business activity. Instead, the whitepaper recommends businesses use data and insights to determine where savings may be realised.
According to the ‘Fit for the Future: How HR can prepare for a recession’ whitepaper, data can help identify opportunities to employ tactics such as:
- Redesigning processes and outsourcing certain tasks
- Automating manual processes so staff have more time to focus on outcomes or revenue-generating activity
- Reshaping work hours by negotiating a temporary reduction in hours
The whitepaper also suggests that data and insights should underpin other HR-related activities that can be put under considerable pressure during a recession. Activities such as rewards & recognition, staff engagement, and learning & development should all be driven by insights into a particular organisation’s circumstances.
ELMO Cloud HR & Payroll’s Chief Human Resources Officer, Monica Watt says data should reign supreme when making long-term decisions in a short term timeframe.
“Businesses that have an understanding of their workforce based on data are going to be able to make informed decisions about how they’ll respond to a crisis.
“In a crisis, having data behind you is the difference between stumbling around in the dark or having a torch to shine a safer path forward.
“Gaining access to these insights and data requires investment in technology that covers the entire employee lifecycle from hire to retire.
“A recession doesn’t just jeopardise an organisation’s revenue; it can impact the wellbeing of employees with more people concerned about their own financial security.
“Unfortunately in some cases redundancies can be the only option for an organisation. When that’s the case, having data to make truly informed decisions can help manage the impact it has on an organisation’s culture, future growth and productivity.”
ELMO’s latest whitepaper ‘Fit for the Future: How HR can prepare for a recession’ can be downloaded here.