5 steps CHROs can take to help their organisation survive a recession
HR leaders can play a key role in helping their organisation weather an economic downturn, however, the majority of CHROs are unprepared for such events and need to take action in order to improve organisational resilience and help survive through a recession.
Economists globally are predicting a 20-25 per cent chance of an economic downturn or recession within the next twelve months, and a recent research report found that HR is largely unprepared for such an event.
This is particularly the case in Australia where the impact of the global financial crisis was less pronounced than elsewhere in the globe, said Dee Fitzgerald, a consultant in the leadership and succession practice at executive search firm Russell Reynolds, which conducted a survey of 534 C-Suite executives (including 43 CHROs in the Asia-Pacific region).
“While most deem that a recession is inevitable, only 9 per cent of CHROs surveyed would describe themselves as well prepared to manage through an economic downturn,” said Fitzgerald.
CHROs are even less confident in the level of preparedness of their teams, with only 3 per cent of CHROs stating that they are confident in their team’s ability to respond to a recession.
“The HR function could very well be the function that helps an organisation survive through a recession and recover faster than competitors, although the development of the HR function and team is often low on the executive agenda,” said Fitzgerald.
Resilience through diversity & inclusion
Tina Shah Paikeday, global leader of the diversity & inclusion practice at Russell Reynolds, added that the threat of an economic downturn is not the only issue that characterises the landscape of Australia’s current business landscape.
“Our research shows that inclusive leaders can significantly affect their employee’s experience at work, thus improving outcomes including job satisfaction, loyalty and sense of belonging,” she said.
“Inclusion helps employees be authentic in the workplace, and in this sense of belonging creates higher levels of resilience.”
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