Greg Savage is the chief executive officer of Aquent International, an HR and staffing solutions firm that specialises in the marketing, communications and creative domains. Recently, he was interviewed by India’s The Financial Express. Here are an excerpt from the interview where he was asked about the role of HR during an economic downturn:
“In many countries including India, HR has evolved into an administrative function. I don’t think it adds any significant value to a company when it is reduced to that. But that is the state of affairs in many places. HR’s real value is in attraction and retention of talent. That will help drive the business forward for a company. This role is no different in a downturn or a boom. During a boom, the HR department becomes more of a recruitment agency. The difference being that it is not an external unit but an in-house department. During a downturn, roles are reversed, one may argue, with the job of HR meant to limit recruitment. But I have a different take on the matter. To me a downturn is actually the ideal time to add to a company’s talent pool. You may not end up with more people, but you could get access to some great talent at this point. Also, motivation and retention of the existing staff becomes critical during a downturn. An uncertain period breeds insecurity in people. That has to be tackled with compassion and understanding and the right systems and processes designed to motivate them to work.”