Workscape Institute

For most business owners, investors and consumers, tossing the 2008 calendar into the trash was a very enjoyable task. After watching virtually every major economic indicator spiral downward last year, many individuals are looking to 2009 with careful optimism. Our economy is far from being out of the woods – and perhaps the much storied “turnaround” will not officially begin until 2010 – but there’s something refreshing about heading into a new year with sleeves rolled-up and ready to tackle these challenges head-on.

For those in Human Resource roles, 2009 will in many ways be a “back to basics” year, with a renewed focus on the areas of compensation and health & welfare benefits. With companies across all market sectors tightening the belt, every bit of cost reduction can make a difference. As a result, HR execs and their teams are being asked to do what on the surface may seem impossible: contribute to corporate cost reduction strategies in a meaningful and demonstrable way while simultaneously maintaining employee morale and motivating the workforce.

Follow up:

Keeping employees focused in a down economy is extremely challenging, particularly if you’re in an industry that has been most directly affected (e.g. manufacturing, retail, financial services, et al) or if your organization has been forced to reduce the workforce or cut-back on benefits such as wage increases or bonus payouts. The skyrocketing cost of healthcare continues to weigh on an organization’s bottom line and, in an effort to mitigate these costs, high deductible or consumer-driven healthcare plans (CDHP) are gaining in popularity and practice. Successfully addressing these issues will require HR teams to communicate more frequently and effectively with employees, as well as provide them with the resources they’ll need to make well-informed plan and spending account decisions come open enrollment time.

What’s most important to note, however, is that awareness of these critical “to-do” tasks is not limited to HR teams. According to a recent Duke University/CFO Magazine survey, two of the top three internal concerns facing CFOs this year include “attracting and retaining qualified employees” and “(addressing) the cost of healthcare.” And should the economy continue to slide, it’s likely that the “attract/retain” priority will focus more heavily on the “retain” side of the equation. (Top performers will typically have employment options in any economic climate. Keeping them happy and loyal through the tough times will ensure that they’re in-place and focused once business turns around.)

What’s on your 2009 “to-do” list? Are you wrestling with these issues or a different set of challenges? Please leave a comment and let us know… we would love to hear from you.