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Crisis: Boon or Bane for Recruitment

Views 7 Views    Comments 1 Comments    Share Share    Posted 03-02-2009  
Recession or crisis is the part of the normal cycle of business - it is certain that they will sooner or later occur. Therefore, it makes just as much sense to plan for recessions or downturns as it does to plan for good, economic times.

Employees may experience anxiety around a number of issues during an economic downturn or financial turmoil. These may include:
1. Potential job loss and reduced income
2. Depletion of savings and investments
3. Inability to handle new demands created by work force reductions
4. Increased competition within the organization for fewer resources, with less willingness on the part of groups to support each other
5. Unpredictability about how long and deep the downturn will be There isn`t a magic bullet to get us through stressful, hurtful, and challenging times. From the standpoint of budget reductions, a few helpful concepts include:
1. Take full advantage of good financial times because they set the stage for decisions made in difficult financial times.
2. Do the best you can to represent the needs you have for resources to carryout and support your programs.
3. Always be on the lookout for alternative revenue sources, including enterprise funds where appropriate.
4. Never forget how important you are to the safety of your community.

What Can Leaders do during difficult times?
1. A frequent Communicator with the clarity, credibility and candidly.
2. Keep connected. Keep checking in with all levels of staff to see how people are doing.
3. Keep control on emotional anxiety because it is highly contagious.
4. Develop a proactive plan to recognize, identify and deal with current challenges and emotions in the workplace.
5. Keep intact in the turmoil and show calm confidence and optimism towards your subordinate. Set a standard to lead by example and live your values.
6. Keep your team focused towards the ultimate objective and celebrate after achieving the milestone.
7. Focus on core strengths and values, company vision and how to keep customer confidence high.
8. Engage your top talent to make them more productive and everyone`s extra effort should be noted and recognized.
Financial Crisis: Is an RPO solution?
The traditional methods of d i s p a r a t e r e c r u i t m e n t functions and outsourcing to multiple vendors (staffing, technology, screening, etc.) do not meet today`s requirements to compete effectively in the global marketplace. They also are difficult to manage in terms of quality and cost efficiency. Taking advantage of a RPO in a questionable economic climate is one way to keep your organization lean and efficient. Frame your mind with the best recruitment strategy for your company in this economy crisis by analyzing the following points:
1. Calculate the cost per hire.
2. Make the organization updated with the opportunity cost for the time spent versus workforce planning.
3. Calculate the cost of sourcing candidates, putting efforts and the time to fill the positions.

RPO is one of the options in the mind of organization due to lack of internal HR resources.
Additional driving factors include:
1. Turnover reduced through improved quality of candidates.
2. Accountability to management that creates a need for detailed cost management and a forecast of staffing and workforce planning.
3. The need to better manage/reduce recruitment spending/total cost per hire.
4. The need to free HR resources to focus on more strategic talent management and workforce planning initiatives.
5. A transformation to centralize a decentralized recruiting function.
6. To control of global staffing requirements through one centralized service center and control of recruitment activities and spending.

RPO allows the HR and talent acquisition functions the necessary time and resources to focus on strategic, talent management concerns driven by the bottom line. Now, HR is able to influence better decision making and improve workforce planning efforts. The review of RPO has led many companies to realize that a lack of sufficient internal information and data prevents accurate calculation of their cost per hire.

If you choose RPO, you can benefit immediately from a recruitment team that can quickly scale to meet your hiring needs. An RPO team`s success is tied to stringent service levels, providing a high level of accountability to performance and cost that is often difficult to build and enforce with an internal team.
Conclusion
The saying "the best defence is a well thought-out offence" applies to management in difficult times such as a recession. The best way for a firm to handle such times is to plan for them ahead of time. A management team that is adroit at planning and implementing recession strategies can sometimes use the circumstances of a recession to expand market share.

Source:
http://www.nationalhrd.org/newsletters/2009/0109.pdf
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Mahalakshmi 10-02-2009
I was usefuable to understand how an employee should react and what should he do during the downtime of the industry

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