This year’s Sage Summit customer conference included presentations from top industry experts in compliance, benefits management, payroll, and HR. For those of you who couldn’t attend, here’s a recap of the highlights presented during the Sage Abra Spotlight on HR track.
Why HR is Critical in Today’s Downturn
In this session, Dorothy Knapp Hill of SHRM talked about how the economy has affected the role of HR professionals by forcing them to focus all of their attention on cutting costs. She further counseled the room about how to avoid layoffs and presented case studies of companies that were getting creative about cutting costs, avoiding layoffs, and engaging and retaining employees. Key takeaways included:
- Employees who are not laid off can suffer “layoff survivor sickness,” a term coined to reflect the negative emotions that can impact organizational performance and/or cause an exodus of workers that results in greater losses than the cuts achieved by layoffs.
- Workers are increasingly dissatisfied. 53% of employees are only staying with their present employer until the economy recovers.
- Average cost to replace an employee is 150% of the employee’s base salary, according to the Bliss-Gately “Cost to Replace Tool.”
- When we do pull out of recessions, the business environment will not be the same as before. We will emerge into full scale global competition that requires HR professionals to talk the language of business.
For additional SHRM support resources: www.shrm.com.