HR can really add value to the business through providing effective leadership, innovative solutions and in “being there” for the staff. HR expert and Managing Director of MTD HR Consulting, Sean McPheat, predicts what HR Directors need to do to make a difference.

All too often the emphasis is on “resource planning” and “what if analysis” in reaction to messages from the Chancellor or the from the latest FTSE 100 company to issue a profits warning, but in order to drive through these turbulent times a more proactive outlook is needed. Don’t get me wrong, it is prudent to plan for the worse but the emphasis and focus should be on “thriving” rather than “surviving” and if you’re not careful you can actually talk yourself into a recession by focusing on the wrong things. No more so will the term “Business partner” be used in these times but HR is often looked as the department that “mops up” the bad news like managing redundancies, freezing recruitment, slashing training budgets or phasing out staff benefits. This need not be the case though and we are experiencing that many HR Directors are taking a more proactive approach to managing their budgets, manpower planning and internal initiatives to not only “survive” these choppy waters but to thrive through them as well.

So what can HR do to really make an impact? There are always rumours floating about in any organisation at the best of times but this seems to be tenfold when times are tough. HR need to give regular updates and reassurances to staff to ensure there are clear lines of communication. There needs to be face to face cascades as well as the use of intranets and social media too. It’s your opportunity to be flexible in the communication strategies that you use. We’re not just talking about information updates about the economy, growth projections etc. Instead we are talking about positive influences on the company and to reassure everyone that great work is taking place and business goes on! Get your staff involved. Firms will need to keep their top talent. They will need to identify their top performers and ensure that there are clear plans in place to keep them motivated and performing. Have you even identified your top talent and what are you doing to keep them with you/ We’re not just talking about pay and benefits here but we’re also talking about responsibilities, involvement and managing up as well. How will you attract the top talent too? It’s the day-to-day interactions and leadership of your staff that will make or break your company in terms of the culture being one of a “thrive” or “survive” outlook amongst everyone. Strong leadership is required by your management at all levels right the way throughout your organisation. What plans do you have to improve the competencies of your leaders? They no doubt know what to do in terms of their roles but do they necessarily know HOW to do it? Your leaders need to be able to get the best out of everyone and to set an example of the desired hire performance culture that you are looking to achieve. It’s an easy question to ask but ask three members of staff who complete the same role that question and you’re likely to get three completely different answers.

Clarity and expectations must be communicated and worked through with everyone and hence a robust and easy to understand performance management system is a must for a “thriving” company. Is it time to review what you offer? Commissioning pieces of work to look at this issue can have many benefits, not only now but in the future as well, when times are more fruitful. There’s a famous quote that reads “The only way to predict the future is to create it”. This certainly rings true in terms of the reaction that HRD’s will have in response to future forecasts. The prudent approach is to take stock of where you are and to plan accordingly. This will work well but the companies that will thrive throughout these times and beyond will appreciate the importance that HR has to play in the success of the company, to create the desired high performing culture that drives the business rather than just being a supporting actor… HR will go to the Oscars!