HR: a key function for getting through the crisis

Confidence, dialogue and listening were the operative words at the recent seminar organized by the CHRA. Montreal’s Hyatt Regency hotel hosted the event, whose theme was the economic crisis and the key role HR professionals can play.

“I’m with the optimists,” says economist Alain Dubuc. As the first speaker of the seminar headed by the CHRA, the La Presse columnist set the tone for the day. His talk, which was on post-crisis thinking, first sought to set the record straight about the economic crisis. It’s definitely a global phenomenon, but one which does not impact all countries in the same way. While Canada is in recession, its situation is far from being as severe as what the U.S. and some European countries are experiencing. A context in which not everything is rosy, but which should not lead companies to batten the hatches. “Let’s not sacrifice the future on the alter of the present,” he recommends.

Rethinking organizations

Human capital, adapting skills, innovation: companies need to make strategic choices for the future and not just try to salvage the situation. To do this, they must learn to manage risk on a daily basis. According to Richard Thibault, author of “Comment gérer la prochaine crise ?“, published in April 2008, “Manage your risks, or you’ll be managing your crises.” He went on to say that managing your risks through anticipation is to give yourself the means to reduce them. This is the responsibility of both management and human resources professionals. It is up to the latter to identify their own specific risks, challenges and consequences in order to eliminate them. He reminded the audience that crises affect real people.

Listening and communication

Listening and communication provide data which greatly influences the role and functions of today’s human resources staff, whose work must more than ever be an essential component of corporate strategic initiatives. The current crisis is a challenge for the future and the present because emerging from this period of uncertainty will not be accomplished without a few collisions. Some companies will have layoffs, reorganizations, and periods of technical unemployment. They will have to communicate bad news, while continuing to rally the troops. These issues are now crucial for HR professionals and will require good listening skills and flexibility, particularly when dealing with the potential resistance of employees to change.

Overcoming resistance

Nervousness, anger, sulking, withdrawal, along with absenteeism, disengagement, or couldn’t-give-a-damn attitudes. . . resistance is expressed in many different ways, according to speaker, psychologist and organizational effectiveness consultant Ghislaine Labelle. To overcome it, it may be helpful to recognize the four Keirsey temperaments:

• Guardians – logistical intelligence – will resist by complaining or laying blame
• Rationals – strategic intelligence – will act like robots and may appear heartless to coworkers
• Artisans – tactical intelligence – will engage in delinquent behaviour e.g. punishing others, engaging in blackmail and doing the opposite of what is asked of them
• Finally, idealists –diplomatic intelligence – will be more theatrical and will distance themselves, mask reality or seek to disappoint

“Senior executives often have a guardian temperament while HR people tend to be idealists,” says Ghislaine Labelle.

Communicate, communicate, communicate…

Implementing good communication may allow resistance—which appears unavoidable in the event of upheaval—to be anticipated and therefore mitigated. Communication is even more essential when it involves the announcement of bad news. Barack Obama’s speech on the freezing of White House aides’ salaries is a case in point. Louis-Philippe Péloquin and Daniel Dumas, communication directors with Morneau Sobeco, spelled out six ingredients for getting across key points during a crisis.

In the forefront, transparency: it’s important to tell the truth. Then, empathy; employees need to feel that companies understand their situation. After that comes the announcement of actions to be taken: hiring freezes, department reorganizations, etc. Employees also need to feel some engagement with their company. Letting them know that their ideas are welcome may be effective. In addition, manage their expectations carefully. Lessening the impact of bad news with false promises can do nothing but harm. Finally, it is imperative to keep in mind that the actions implemented should be in accordance with corporate values.

A major player in the management of risk, an essential cog in good communication practices, an intermediary for employees and managers—the human resources function has, as maintained by participating speakers, an especially strategic role in a downturn.