Even thin cats need calories: Making the recession work
A recession can help businesses identify high-performing staff while cutting costs by eliminating underperformers. By plotting employees on a skill-versus-willingness matrix, managers can make strategic decisions about who contributes most to the organization’s success and focus resources on developing talent that delivers returns.
Employee engagement is key to future business success, finds MacLeod Review
The MacLeod Review finds that employers must actively involve staff in business decisions to drive innovation and success. The review recommends government support and cross-sector cooperation to make employee engagement central to business performance and competitiveness.
HR tip: Unanswered job offer
When a job offer goes unanswered, employers should attempt direct contact and set a clear deadline for acceptance. A reasonable response period typically ranges between two days and two months, though future offers should specify an explicit acceptance deadline to avoid ambiguity.
Employee engagement and motivation: What not to do
Learn what approaches damage employee engagement during economic challenges. Tim Holden identifies critical mistakes businesses must avoid—from poor communication and neglecting development to leadership hypocrisy—to maintain motivated, loyal teams through recessions and beyond.
Success in a recession: Be inventive
During recessions, creative thinking becomes essential for business success. HR professionals can foster innovation by teaching employees to question assumptions, solve problems in new ways, and challenge conventional wisdom—skills that help organizations navigate uncertainty and identify new opportunities regardless of economic conditions.
Keeping your survivors engaged
Up to 10% of employees who survive redundancy programs leave their companies afterward, often taking key talent with them. HR can boost retention by aligning individual employee goals with broader business objectives, helping survivors feel valued and reconnected to organizational success.
Default retirement age review to take place in 2010
The UK government has brought forward its review of the default retirement age from 2011 to 2010, citing changing demographics and economic circumstances. Age campaigners support the move, arguing the current system allowing enforced retirement at 65 is outdated, though some business consultants question whether the review is necessary.
Should HR outsourcing be a part of your recovery strategy?
HR outsourcing can be a valuable cost-reduction strategy during economic downturns, but requires strategic planning and strong execution to succeed. While market conditions have slowed large contracts, smaller single-process outsourcing arrangements and “try before you buy” approaches offer lower-risk alternatives for organizations seeking sustainable savings.
Ask the expert: Dismissed on capability grounds
An employee dismissed on capability grounds after 10 years due to stress and depression questions whether fair procedures were followed. Legal experts examine whether the dismissal was fair and advise on appealing the decision.
BERR and DIUS merger: Implications for employers
The government merged BERR and DIUS into the new Department for Business, Innovation and Skills to improve global competitiveness and provide better employment opportunities. However, employers remain skeptical about the merger’s benefits during a recession, citing confusion in the skills system and unnecessary costs.
Colborn’s Corner: Pay and benefits – will they ever be the same again?
BA staff rejected pay cuts aimed at stabilizing the airline’s finances, raising questions about employee relations and whether pay and benefits can return to pre-crisis levels once the economy recovers.
Rewarding the recession-weary
During economic downturns, companies are shifting reward strategies to boost employee engagement despite tight budgets. A global study found over half of organizations plan to increase focus on engagement rewards, with 64% prioritizing motivational value alongside intangible benefits like career development and recognition.
HR tip: Defining redundancy
In employment law, it is the person who is made redundant, not the job itself. Redundancy occurs when there is less work requiring dismissal, regardless of whether the specific role continues. A voluntary departure shields employers from redundancy claims.
Opportunities for HR with the ‘New Normal’
The credit crisis has created significant opportunities for HR professionals to shift focus toward relationship management and long-term strategic alignment. As organizations recognize that people are their greatest asset, HR must provide deeper analysis of how workforce factors drive business performance, moving beyond short-term metrics and formulaic approaches.
New redundancy alternative announced
Business leaders have proposed the “Alternative to Redundancy” scheme, offering workers £130 weekly support to stay home for six months instead of being made redundant. However, unions have criticized the plan for potentially exploiting workers by reducing employer notice periods and eliminating redundancy packages.
Royal Mail staff set for three-day strike
Royal Mail workers in London are striking for three days over efficiency cuts and modernisation plans. Delivery, distribution, and mail centre staff are walking out after the company refused to pause cuts during negotiations on workforce changes.
Absenteeism rises as swine flu takes hold
Staff absenteeism has surged 66% due to coughs, colds, and flu-like symptoms, with swine flu cases expected to reach 100,000 daily by month’s end. Absence management data shows one in 400 employees calling in sick during late June, significantly above the annual average of one in 630.
Ask the expert: Maternity leave job changes
An employee returning from maternity leave discovered she’d been moved to a significantly reduced role despite assurances her position wouldn’t be weakened. Experts advise pursuing a formal grievance to address the job changes and potential unfair treatment.
Effective change management: Interims in the driving seat
Interim managers bring external expertise and objectivity to drive organizational change effectively. These senior-level professionals excel at managing sensitive initiatives like restructuring and mergers while maintaining business continuity and employee morale during challenging economic times.
The top five myths about motivating employees
Money alone doesn’t drive employee motivation. Research shows effective engagement requires recognition, transparency about company challenges, and individual career development conversations that help employees find purpose in their work.
