The recession had devastating and far-reaching effects for most businesses in the United States. Enterprises limped through lean times as consumers clutched their pursestrings tightly and the government tried to stem the tide. It took nearly three years, but the Great Recession officially ended in 2009.
In recent years, house prices have risen steadily, unemployment has shrunk and stock prices have climbed. All in all, it would seem that the U.S. is heading back to fiscal prosperity.
The tricky part about all that, however, is that there are those who would argue that it hasn't actually happened yet. There's still a feeling that the country is still in the midst of the recession because many people and companies are still struggling to make ends meet and gain any type of stable financial footing. MSN points out that a recent survey shows that 54 percent of respondents believe the recession is ongoing.
This is partially because the numbers used to support the claim that the tough times are over are somewhat skewed. For instance, unemployment rate only accounts for the number of people who searched for jobs without finding any, meaning that it doesn't factor in anyone who's given up or is stuck in part-time roles because full-time work remains elusive.
USA Today recently pointed out that this sentiment is gaining steam among the public. Mary Villalba, 65, told the news source that she was laid off in 2007 and had to do consulting and part-time work because she can't find anything permanent.
"It's hard not to be discouraged when I compare my credentials against those of people 40 years my junior who get the job offers," Villalba said.
Of course, consumers aren't the only ones still feeling the impact of the recession. Many businesses have dealt with years of sluggish sales while they search for ways to fully recover. Bob Benham, owner of Balliets, explained to USA Today that the financial prospects of independent companies are tied directly to the public's fortune.
"There is a lot of waiting-and-seeing both with consumers and small retailers. And I just think there are a number of anchors creating a less-than-exuberant feeling for both of them," Benham said.
Indeed, it follows that if consumers don't feel comfortable in today's economic climate, then they won't spend enough to support small businesses. As a result, enterprises have had to evaluate all of their internal practices and revenue channels to ensure that they're fiscally settled.
What HR can do
The HR department should play a significant role in guiding your organization through this apparent recession. The group touches almost every process within your company, meaning that it understands what can be improved.
Together, HR and management needs to review the budget and determine if certain departments still need to cut jobs. If so, HR needs to work with managers to evaluate what it will take for their departments to be effective and productive. HR will then establish a protocol for evaluating groups and non-producing employees. A strategic evaluation needs to be in place to prevent any future litigation.
Next, HR needs to develop a communication plan for how things will be restructured moving forward. This includes holding company-wide meetings to put everyone at ease about the situation. In cases where there are layoffs, career counseling and outplacement services should be offered.
Employee benefits programs need to be upgraded to include more cost-efficient perks. Affordable group health insurance plans like level-funded insurance can minimize overhead expenses and enable greater oversight. With this financing model, coverage providers give enterprises hard quotes and cover any claims that exceed that limit. Additionally, there needs to be greater clarity for the staff. With the anxiety of possible losing their jobs, employees can become fixed on reviewing what they have. Providing an online portal such as an HRMS application, employees can view their wages, retirement savings, W-2's and health insurance. This prevents the HR department from continual answering questions and leaves them the time to focus on strategic planning or objectives.
Ultimately, a strong HR department is one of the most beneficial assets to have in today's unstable economy. C-suite should work closely with HR to develop short- and long-term plans to ensure that your organization is in the best place possible to not only survive the recession, but thrive for years on end.