6 Simple HR Strategies for Reducing Company Costs During a Recession

With layoffs and benefit cuts happening all around us, it’s a crucial time to strengthen the relationship between HR and business strategies. Like many companies, your business is likely tightening its belt, trying to find ways to cut costs and survive on lower profits. As an HR professional, now is a great time for you to take a leadership role and share ways HR can save your company’s money.

Need some ideas? During two webinars in February 2009 - Employee Retention: High Impact Performance Management for Engaging and Retaining Your Top Performers and HR Planning: HR's Role in Strategic Workforce Planning for 2009 and Beyond - PayScale sat down with business leaders from a variety of industries and locations and asked them for a sample of HR strategies they were using to lead their organizations’ human capital and cost management efforts.

How to Write a Compensation Plan: Some Fundamentals During a Recession

Maybe as employers, we can get a little complacent about our compensation plans this year.

We’re all sitting in the catbird seat today. And maybe still will be next year.

Along the way, especially if the economy doesn’t improve, the only folks we’re really likely to lose are – who? Well, there’s a concern! It’s our outstanding employees who are the highest turnover risk – those who are keeping us successful during a recession.

So let’s discuss how to write a compensation plan, today, that will keep us in business for the long run. One that will encourage employee retention, maintain morale, limit employee turnover and keep us HR types on the CEO’s “nice” list. Here’s how:

How Will Obama’s Executive Compensation Cap Affect Companies in Trouble?

It’s official. The unethical use of bailout money that so many of us feared would come when the government wrote big checks to save our economy has arrived. In fact, according to a recent L.A. Times article, "Wall Street Finds Ways Around Executive Pay Caps," $20 million of the bailout money handed out last year by the Bush administration went to executive compensation bonuses. These, mind you, are top executives at companies that failed. Do you think they are inspired to do better work now that they were rewarded for running their businesses into the ground?

PayScale’s Most Frequent HR Questions - HR Planning: RIFs and Employee Job Sharing

More Questions and Answers from Our HR Planning Webinar

The following is a continuation of the transcript of the question and answer session that followed PayScale’s webinar, HR Planning: HR's Role in Strategic Workforce Planning for 2009 and Beyond. The topics covered in these questions are reduction in force and job sharing. Answers are provided by PayScale’s webinar leader and director of customer service and education, Stacey Carroll, M.B.A., SPHR.

PayScale’s Most Frequent HR Questions - HR Planning: HR's Role in Workforce Development Programs for 2009 and Beyond

Questions and Answers from Our HR Planning Webinar

The following is a transcript of the question and answer session that followed PayScale’s webinar, HR Planning: HR's Role in Strategic Workforce Planning for 2009 and Beyond. The main topic covered in these questions is HR’s role in workforce development programs. Answers are provided by PayScale’s webinar leader and director of customer service and education, Stacey Carroll, M.B.A., SPHR.

Can You Motivate Employees During a Recession with a Successful Employee Incentive Plan?

By Stuart Jennings

Bonus plans. Pay-for-performance programs. MBO programs. Commission plans. Stock option and phantom stock programs. Stock appreciation rights.

Employee incentive plans go by many different names; you’ve undoubtedly seen your share. But, with our economy struggling, how should you approach your employee incentive plans differently to reach your organization’s goals? Or, can an employee incentive plan actually create the results you need?

Employee Retention Tips for an Economic Recession

By Stacey Carroll

Of all the threats and challenges your company can face in this economic downturn, losing top performers can be one of the most damaging.

As your workforce becomes more lean, top employee retention becomes more important. The quality of the people you have on the front lines determines your company’s survival. It is said that 20 percent of your workforce does 80 percent of the work. At this point in time, it’s possible that those 20 percent make up most of your team, and you want to keep them around.

HR Planning: Why It Is Essential for Your Organization’s Success

By Stacey Carroll

You know your company has goals for next quarter, next year and the years to come. From higher profits to more product reach, have you aligned your HR planning with your organization’s goals? How can you help ensure that your company has the employees it needs to succeed now and in the future?

Employee Turnover Causes and the Role of Compensation: Two Opposing Viewpoints

By Barry MacLean and Stacey Carroll

In today’s unstable marketplace, retaining your most seasoned and talented employees helps ensure your organization’s strength. It’s more important than ever to put strategies in place to avoid the overarching costs of employee turnover causes, and keep skilled, high-level producers motivated and invested.

But, which strategies will provide the results that you want? Barry MacLean and Stacey Carroll share their opposing viewpoints on the role of compensation in employee retention and employee turnover. Barry begins with his perspective and then Stacey responds. Let’s see what these experts think.

How to Build a Talent Management Strategy – Based on Compensation

By Barry MacLean

Organizations have integrated most of the key human capital functions - like recruiting, employee development and succession planning – into their talent management strategy. Yet, most are missing one other function: compensation. I believe that the most common disadvantage of talent management programs is that they exclude compensation as a prominent factor in employee development and retention.

Is there something fundamentally different about compensation that sets it apart from other strategic HR areas? 

You Must Review Your Employee Compensation Policy: The Effects of Obama’s Signature on the Lilly Ledbetter Fair Pay Act

By Stacey Carroll

The equal pay bill President Obama recently signed into law directly affects the American workplace, especially your employee compensation policy. In an effort to combat racial and gender inequality in the workplace, President Obama changed the day-to-day reality for HR and compensation managers - possibly forever. In a nutshell: You better be ready to explain yourself.

Staying the Course with Compensation Today

Today’s volatile economy can make it hard for human resources and compensation managers to plan ahead. In fact, all the downsizing can feel like riding a roller coaster with a blindfold on – unexpected drops, turns, climbs and upside down loops leave you struggling to keep your balance.