Looking Back: How the 2008-2009 Recession Changed the World of HR
by Karen Beaman | January 3rd, 2010 | Blog, General, Globalization, Trends | 0 Comments |The end of the year is a time to look back and reflect on what we accomplished (or didn’t!) and look forward to what will be different (we hope!) in the new year. So here are three things that I think have changed for HR and HR systems during this rough, recessionary year — the worse economic year for business since the Great Depression. And I think these are lasting changes. While the recession will abate and the economy will slowly recover, I think these are some fundamental things that have changed for HR forever.
1) We got leaner.
Unemployment reached its highest level in 26 years (November 6, 2009 New York Times). And while it’s not front page news anymore, organizations are still continuing to “rationalize and rightsize.” I think HR as a function was particularly hard-hit. Our continuing inability to justify the HR function as a value-added business partner has caught up with us. There seem to be as many VPs and Directors of HR out of work as there are real estate agents without houses to sell. Yet being lean is a good thing. It teaches us to work smarter and be more efficient and effective in everything we do.
2) We got meaner.
This difficult economic year has taken its toll on the people left behind in the organization. Called the “survivor syndrome“, the people left behind have a whole new set of challenges they have to deal with. In most cases, they have to pick up additional responsibilities because the work doesn’t simply go away when people leave. In other cases, they may have lost a close friend or ally at work. As a result, I think organizations have gotten meaner. At a recent HR Breakfast Club meeting participants said that their companies no longer feel any obligation to provide training or development opportunities for their employees. The feeling was that the employees should just be happy they have a job at all! Being mean is NOT a good thing. Environments where everyone looks out for their own self create anarchy and breed situations such as Enron. While it is definitely a cold hard world out there, as the economy rebounds and as companies must again compete for top talent, I believe (hope!) that this change will soften. While I believe that people are ultimately responsible for driving their own careers, organizations have a responsibility to support and develop their workforce to help individuals achieve their greatest potential — which study after study has shown, contributes to company performance — that means growth and profitability.
3) We got greener.
The sustainability movement accelerated considerably in the last decade as people are now realizing that the earth doesn’t have an endless supply of raw materials and as organizations are now learning about the savings that can be accomplished through more effective re-use of materials (e.g., recycling paper and printer cartridges). process automation (e.g., eliminating paper forms), and implementation of self-service strategies (e.g., eliminating duplicate paper forms with multiple signatures/approvals). The annual CedarCrestone Technology survey has consistently demonstrated that automation and self-service enablement can bring 25-75% savings, depending on the process. Becoming “greener” and providing more direct access through process automation is definitely a good thing!
So what lasting impacts do you think the recession has had or will have on HR, HR systems, and business in general? I look forward to hearing from you!




