2009 has been a challenging year for businesses of all sizes and one that will have a lasting impact on the way organisations structure and manage their internal operations. The recession has not only impacted revenues, margins and cashflow, but the economic uncertainty has also turned the spotlight onto HR teams who have been central in guiding companies and their workforce through the difficult process of downsizing or restructuring.

As confidence starts to lift and we hear more evidence of the economic upturn, businesses across the UK are welcoming the rays of recovery and HR departments are putting the processes and tools in place for staff to respond quickly to new opportunities and perform to their full potential. With staff motivation a major theme of the year, will it continue to be a legacy of the recession?

At  Sage we’re seeing some encouraging signs that businesses are placing greater emphasis on their workforce to ensure they are well positioned to emerge stronger from the recession. With mounting competitive pressures and turbulent trading conditions, companies have recognised that they can no longer afford to rely on the feature-set of their products or services alone and understand the Benefits of engaging their workforce and developing their skill sets in order to maximise responsiveness and performance.

In our recent monthly Omnibus Survey drawn from 2,000 of our 790,000-strong community of business customers, Results revealed that the top priority for firms in 2010 is to motivate and look after their workforce. Encouragingly, the majority of respondents (55%) had also decided to push on with their Christmas parties in 2009 to reward their employees’ hard work and dedication, despite a tough year.

Our investigation into organisations’ New year’s resolutions showed that 27.5% identified “fostering a happier, more motivated workforce” as the primary priority for 2010, ahead of “increasing profits”(26.9%). Indeed, it would appear that as we enter a new year, businesses are putting people before profit in order to actively support employees through these changing times.

Sadly, there aren’t many organisations that haven’t had to downsize and distribute more work amongst fewer staff during the recession. This has not only increased each employee’s workload and heightened the pressure on them to deliver Results, but has had significant implications for the role of HR, which is ultimately accountable for managing this change. Yet one of the biggest and most positive outcomes of the recession is that the importance of maximising staff welfare has now become too large for organisations to ignore and businesses are placing emphasis on shaking away those recession blues, improving internal collaboration, better managing their processes and boosting morale. Scalable software that can manage an entire employee lifecycle, from candidate to leaver, not only helps remove the administrative burden but also enables more proactive decision making through better access to accurate and real time information. As all businesses continue to feel the effects of difficult trading conditions, it’s encouraging to see staff welfare as the top business priority in 2010.  

2010 is the time for trust to be re-built within organisations. By engaging with employees and investing time and resources to foster a happy and motivated workforce, businesses will benefit from greater productivity and talent that, if managed correctly, could see them through the recovery. Providing clear development opportunities for employees for example, will drive employer appeal and help increase motivation and commitment among the workforce by letting employees know that the business cares about their development. After all, in an environment characterised by mounting competitive pressures, it is those companies that provide clear progression and talent management that are seen as good places to work and are most likely to succeed.

1. Keep on your toes

Can you respond quickly to changing circumstances and business objectives? Can you actively support your employees through these changing times? 

2. Training, training, training

Do you have the right people in the right jobs? Are line managers ready to lead their teams to business success?

3. It’s good to talk

Do your employees know your short or long-term business strategies? Do they have confidence in management?

4. Do you have employer appeal?

Is your workforce motivated? Are you inspiring creativity through enterprising initiatives?

5. It’s all about me, me, me!

How well do you know your workforce? How easy can you identify sub-cultures or individual needs?

As the economy starts to show signs of recovery, businesses can afford to look beyond short term survival and start planning for the anticipated upturn. The long-term value that collaboration brings to an organisation more than outweighs its perceived cost – it will help forge stronger relationships and happier workers that, in turn, will translate to more efficient working practices company-wide.

Put simply, we should view the approaching upturn in the economy as a chance to elevate the role of HR. 2010 is the time for organisations to focus their efforts toward re-evaluating HR processes and making the necessary software investments to reduce administration, become more streamlined and cultivate talent. Making these changes today will not only improve competitiveness and provide the operational clarity required to maximise corporate performance, but will also prepare the organisation to exploit future economic growth.