Key staff will leave and they will take the knowledge along with them.
High employee turnover and absenteeism
Low morale and motivation.
Increasing costs of health benefits..
Expensive litigations, rising of legal concerns.
And, it can also lead to negative publicity, and damaged reputation for the business.
How Can HR executives contribute?
Strategic planning of workforce: HR can anticipate all the future human capital supply shortages, so that the competencies can be redeployed as needed.
Controlling the productivity: The productivity control needs to change from the input level to the output level. So, instead of using HC, personnel costs and such, HR should be focusing on value added per employee KPIs.
Creating Work force flexibility: By providing different options, such as sabbatical programs, flexi-hours and paid leave, some reversible scenarios can be created.
Reduction of workforce: The business should think carefully about cutting down the workforce in the right places. Here comes the strategic HR with its deep business knowledge right on place.Layoff should be based on people´s performance instead of costs.
Management of personnel costs: by creating innovative models for compensation, the personnel costs can be easily managed.
Focus on recruiting the key people: This is the best time for an upgrade on the talents of the existing staff, focus should be on recruiting and retaining key people.
Employee Engagement: The employees should be motivated and made accountable. They should be given opportunities for growth and development.
Leadership qualities: Focus should be on the frontline managers, as they are the key people, who can give a push to the business. They should have all the leadership skills, so that they can lead even during tough times. They should have a good sense about engagement and motivation, so that they can be able to detect the trouble spots, even before they crop up.
External and internal communication: The message should be conveyed to the employees by the management. This will help in improving the confidence of the personnel.