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How Recession Affects the Human Resource Policy?

We have not even crossed a full five year after facing one of the most crushing economic recessions in the preceding decades. We have seen huge lay offs, shrinking employee strength and business establishments in various large corporations and huge bearing of these depressive factors on the gross social psychology and buying culture of people. Nevertheless these factors on various social and economic layers can be observed in the internal work atmosphere of business establishments also and human resource being the department looking after the issues relating to employees and staffs has passed through one of the most trying times. How recession affects the human resource policy can be observed from various levels of employee management, retention and recruitment policies and compensation policy. How recession forced companies and various organizations to make serious changes in their components of human resource policy, we will introduce here categorically.
Contingency Plan
In a global economic crisis which we have experienced in the near past, the management should have a wide array of contingency plans for taking crucial decision in regard to making employee force productive and revenue generating. Any odd factor in the international business or economic scene can surprise you with tremendous pressure on cost front or in the top line sales level but if you are prepared with more number of shock absorbers, you are likely to stay steady despite all bumps.
Job and Retention
This is the most common and invariably most influencing area where recession gets through more easily. When it is commonly said that recession means your job is at stake, many a times it proves otherwise. Recessive factors can compel company to practice a more rigorous retention plan in some sectors where the density of the skilled and key responsible employees is highest. In most of the sectors where unskilled employees are huge in number, layoffs and job freeze are the common rules of the game. In respect of retention of the employees and job freeze recession affects the human resource policy most.
Productivity Enhancing Measures
Special attention towards productivity and revenue generation and special measures taken by the company to raise productivity are the sure signs of how recession affects the human resource policy. Employee productivity and performance is the most important factors in the time of recession and human resource management team have to become more proactive to ensure that. Brainstorming session for employees’ active participation in the management decision, maintaining a calm atmosphere where employees can be assured of the supportive role of the company, these are some of the important human resource initiatives which define productivity enhancing measures. Reviewing employee performance and productivity status regularly and discussing measures for raising that standard are the regular features of human resource of management in the time of recession.
To provide a focused picture of how recession affects the human resource policy we have only mentioned here three basic and fundamental areas of influence of recession on the business process of companies.

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