Recession Management: A Strategic HR Agenda
The spectre of global recession is looming larger by the day. It may be deep or it could be mercifully short. But the edges of world economy are getting g frayed. India, as a member of the world community, will not go unscathed. But given our own momentum of growth fuelled by a large domestic demand will possibly need to balance cautious optimism and downcast gloom.
What then does it mean for India Inc? How does it impact the entire thinking on HR matters? Let me share five pointers that I believe would help, nay demand, business leaders not to miss the future for securing the mere quarter.
Talent will continue to be deficit: As India still will hope to grow at a 5-6% positive, there will be the need to continue to look for the right talent. Skills will need to be available for the opportunities, even if shrunk, to deliver value. Slow-downs are a great time to pick talent from other sectors. It is also a good opportunity to reset the skill balance. There will be upheaval but I think talent upgrade across levels, functions and skills must happen.
Make People Risk Management a priority: While companies have been talking about ESG and Enterprise Risk for a long time, the HR risks have largely been seen through the lens of compliance. While that is not going to go away, there is a huge opportunity to look at the issue more strategically. To be relevant through potential recession and sustainable post it, what needs to be critiqued? Not only is this required for the emergent times but even more any quasi-crisis is a good time to set the house in order.
Prune unnecessary expenses: The operating word is unnecessary. This is the role of leadership. What is truly a waste? Organisation design ? Headcount? Misplaced cost to true talent relevant for today and tomorrow? These will have some longitudinal implications. Would coaching be a cost for now but a more powerful investment to building appropriate leadership with an eye to the future? A lot of waste lies hidden beyond headcount. Our processes, systems and mindsets need simplification. Focus on them big time.
Make Agility and Innovation integral to your Culture: Two very deep shifts that the current times call for is about agility, not speed alone, and innovation, especially a mindset for it. With the possible disruptions that are imminent, and irrespective of how buffered companies in India could be, there is a huge cultural upgrade needed in most companies. This will be a brutal shift in leadership assessment and sponsorship. Fear of failure is a sure recipe for disaster.
Preserve your corporate reputation: Business dips in contemporary times lead to some very easy and misplaced decisions. Downsizing, irrespective of the epithet used, must be intelligent and sensitive. And one needs to reinforce this because many companies are very poor in both their thinking and execution of these matters. And when you bruise your reputation today, you will have to pay a bigger insurance premium when you hire tomorrow. A lot of leadership response to the challenges will build employer brands or sully them.
So while global doomsday may not be India’s imminent nightmare, one must not keep eyes off the ball. And many of the strategic organisational issues will be put to the sword in some manner or the other. How well they are visualised and responded to will create more epitaphs or new successes in the quarters ahead.
