How to Safeguard Your HR Career Against an Economic Downturn

HR professionals play a critical role through both ups and downs in the economy, but that doesn’t mean they always feel secure in their roles. You don’t want to take it for granted that people understand how you add value to the organization. 

Instead, this is the time to proactively position yourself as a valuable business partner. In the Oct. 29 installment of the ongoing our Alchemizing HR webinar series, guest speaker Felicia Harris shared her practices for protecting your career during uncertain times. 

Facilitate Cross-Functional Meetings

HR professionals play a pivotal role in bringing together cross-functional stakeholders from across the organization to solve business problems, and that includes shared advice for facilitating effective meetings. First, Harris said, a healthy exchange of ideas across stakeholders rests on trust and vulnerability. Healthy conflict is good, and you can engage in it without offending when all stakeholders realize you’re working toward the same goal. Stakeholders on a cross-functional team should be able to hold each other accountable without needing a single leader.

Remember that relationships power business, especially in HR. Internal relationships with stakeholders are critical, but don’t overlook the importance of external connections, too. Building relationships with external legal and governmental leaders boosts your legal knowledge beyond what you need to know for HR alone. You can learn how laws and local politics affect the business overall. Talk to local politicians (or their aides) about how their decisions affect your business.

Invest in Yourself and Your Future

When you invest in your development, others at your company will take notice. Everyone at your business deals with people, so when business and interdepartmental leaders have questions or concerns about people management or reskilling, you’ll be the first person they come to for answers. You may be asked to share your expertise in leadership meetings more often, too. “I never had to ask for a seat at the table,” Harris said. “I was always invited.”

What are some ways to invest in yourself? Studying for and achieving certification is excellent for your professional development while also strongly signaling your commitment to the HR profession. And once you’re certified, you must stay up to date on HR topics to remain certified, so your colleagues will know you’re a credible source. You can also create a personal mission, vision and values statement that aligns with the organization’s mission, vision and values. Share your statement with your colleagues to demonstrate that you’ve thought deeply about what the organization stands for and the role you play in bringing that vision to life.

Recognize Our Place in the Economic Cycle

Every economy goes through cycles, and recognizing those phases helps you prepare your organization for what lies ahead. Here’s a quick primer on what to look for in each phase:

• Expansion: Your product or service is in high demand, and you’re hiring more people.
• Peak: Everything is going well, and the Federal Reserve is raising interest rates.
• Contraction: We’re falling off the peak, so there’s less demand for your product or service, and the Federal Reserve stops raising interest rates.
• Recession: Companies are experiencing layoffs, and the government is reducing interest rates and lowering taxes to encourage spending.
• Trough: The economy is at its lowest point, and you see companies going out of business.
• Recovery: The economy is ticking back up after a recession. Your business is picking back up, and you’re hiring and training new employees to meet increased demand.