7 Things HR Needs to Say to Managers in an Economic Downturn

In an economic downturn, it’s the managers who will make or break a company. Yet, too often we do manager workarounds because “Our managers aren’t up to it,” or “Our managers are not that sophisticated.” STOP. Full stop.

One of our key jobs in HR is to help managers do what they need to do to keep the organizational machine running. Here are 7 things HR needs to say to managers in an economic downturn:

  1. This whole things rests on your shoulders. Step up or step out.
  2. It’s easy to be a manager when times are great. But these are the times they try mens’ souls. You should know the difference.
  3. We’re all in this together. If you’re saying anything different to your employees, that’s treason.
  4. Our pay plans were designed to recognize there are good times and bad times. Don’t think that just because we’re in a downturn that we’re going to change them on a whim.
  5. You need to pay more attention to your high performers. And that means knowing who they are, what motivates them, and how much they contribute to the company’s success.
  6. Don’t clam up. Sure, we’re all a bit edgy, but this is no time for the silent treatment. Talk. Tell people what you know, what you don’t know, and when you’ll know more.
  7. The mangers who do this best while times are tough are the managers who will have significant careers as senior leadership. We value results and the Peter Principle doesn’t work here.

Grab a Fistful of Talent


Kris Dunn’s Fistful of Talent is playing Rock ‘Em Sock ‘Em Robots with HR talent issues. Kris assembled a talented team of writers and thoughtful articles are being posted faster than Muhammad Ali can punch a speedbag. Stop by. It’s a knockout. (How’d I do on the fist theme?)

Advice for Employees in an Economic Downturn

This is “How to Deal with the Economic Downturn Week” at KnowHR. Most of the time I talk to HR people, but today here’s a piece of advice for employees:

If you’re not part of the solution, you’re part of the precipitate.
–Henry J. Tillman

This is no time for fooling around or thinking “this too shall pass.” It won’t. There will be fallout.

Companies need employees to be on their “A Game,” both in terms of results and how they’re achieved. Because, employees, it’s either that or learn to ask that all-important question: You want fries with that?

10 Things HR Needs to Do in this Economic Downturn

Have you put gas in your car lately? Been to the grocery store? Tried to get a home loan? Thought about traveling outside the U.S.? Talked to a friend who’s out of a job?

It doesn’t take a PhD in economics to know we’re in an economic downturn. Times are tough.

And when times are tough, it’s time for HR to get going. Here are 10 things HR needs to do in this economic downturn:

  1. Get up, walk out of HR, and talk to the people running operations. That’s where the money is.
  2. Fix your friggin sales comp once and for all. Sales matter more than ever, and having a sales comp “system” that can get changed on a whim won’t work.
  3. Take a deep look at your performance management system. Are you getting the real behaviors that you want, or is it a matter of who goes to the most meetings wins?
  4. Ask not what your company can do for HR, but what HR can do for your company. It’s the big leagues folks, and you need to ask the big questions about how HR contributes to the bottom line.
  5. Fell the deadwood. Yep, it’s time to get out there and chop some wood. If you have people in your organization who needed to go when times were good, that goes double now. Learn to say “buh-bye.” And do it actively.
  6. Comfort the afflicted, and afflict the comfortable. That’s an old journalism phrase, but it’s applicable here. No one should be fat, dumb and happy in this economy. Your job is to wake them up. And if people are nervous, you need to calm them down. (No one said this would be easy.)
  7. Listen to comp consultants who link metrics to company performance. And boot out anyone else who’s trying to sell you the comp plan du jour. When times get tough, fundamentals matter and gimmicks have to get kicked to the curb. Make sure you know the difference.
  8. Let employees know what you know. Everyone gets scared when a company goes on “B” budget. They’re terrified when the “C” budget rolls around. People need reassurances when they’re appropriate, but they also need the truth.
  9. Pay lots of attention to your top talent. Not every company is in a downturn. That means when your bonus plan is flying south for the winter along with your long-term plan, your top talent get roving eyes. Top talent wants to be with winners. Pay attention to them now or else start preparing their departure packets.
  10. Do something. When times get tough, it’s not time to sit around and strategize yourself to death. It’s time to get up and take action. Do the things you always said were right for HR, but you never had the time. Now’s the time.

Sometimes Things Aren’t Broken, They Just Need a Different Level of Analysis

I like an escalator because an escalator can never break, it can only become stairs. There would never be an escalator temporarily out of order sign, only an escalator temporarily stairs. Sorry for the convenience.
–Mitch Hedberg

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