As the specter of a global financial crash looms, businesses are pruning budgets, and human resources departments are first in line for the chop, according to new research by HR software company Personio.
More than half (55%) of HR managers have either had their budgets slashed already, or expect them to be cut in the coming months, according to the report, which surveyed 500 HR professionals and 1,000 workers in the U.K. and Ireland. Fifty-two percent of the respondents said they’re used to their department’s budget being the first to get trimmed when businesses tighten their belts.
But this approach is wrongheaded and will have lasting ramifications, argued Ross Seychell, Personio’s chief people officer. “HR should be even more of a priority now, not less,” he said.
That’s because areas typically within the HR remit — like company culture and employee experience — are more important than ever, as organizations continue to battle to get people into the office and ensure the experience is worthwhile when they do. All at a time when talent retention is just as vital.
This article was first published on DigiDay’s future-of-work platform, WorkLife, in October 2022 – to read the complete piece, please click HERE.