HR professionals plan ahead for looming recession

As the years ends with anxiety about a looming recession in 2023, human resources professionals in the United States might be able to take a cue or two from their counterparts in the UK and Ireland.

A recent survey by London-based Cezanne HR Limited indicated that a vast majority (80%) of 500 HR managers, line managers, and senior leaders in a broad mix of private industries in the UK and Ireland believe a recession will drive high turnover rates. What’s more, nearly three-quarters of them say their employees have expressed concerns about how a recession would impact their jobs — including potential redundancies, wage freezes, and increased pressure on performance or efficiency.

As Cezanne HR officials notes, while “this survey has revealed the main fears that managers and senior leaders have, it’s also an opportunity for HR teams to refine their strategies and implement some ‘quick wins’ to support their organizations through the economic storm.” To that end, here are three HR-related “quick wins” the company suggests for implementation in the coming months:

1. Review and refine your organization’s health and wellbeing strategies. Historically, health and wellbeing initiatives have been major factors in healthy company cultures. “With everyone feeling the financial strain, employee wellbeing is a subject that HR teams (and senior leaders) truly cannot afford to ignore,” Cezanne HR cautions.

2. Review your retention strategies. Recognize that even if your company is not anticipating redundancies, other cost-saving actions such as frozen wages, reduced overtime or canceled bonuses could result in unanticipated turnover. “If your business has to take these measures, think about how your staff can be supported in other ways in order to keep them engaged and not immediately heading for the exit,” the company warns.

3. Evaluate your employee data. “Your employee data will be vital should departmental cost savings need to [be] made,” the survey concludes. “Think about how you can thoroughly analyze the performance of your employees, the productivity of certain departments, or where employees may need extra help and support.”

Read more: $322B: the cost of turnover and lost productivity

The survey also suggests that managers and senior leaders believe HR’s primary responsibilities during a recession should be preventing excess staff turnover, improving health and wellbeing programs, and teaching existing employees additional skills.