LAS VEGAS — CFOs aren't the only ones who see a shift in their jobs during an economic bust: human resources professionals also feel the repercussions, just in vastly different ways.
That's why the buzz was all about the economy at the CUNA Human Resources/Training and Development Council's recent conference, despite the fact the audience generally wasn't made up of financial officers.
Kent Streuling, Chair of the HR/TD Council, told Credit Union Journal there are positives and negatives to being a human resources practitioner in a recessionary cycle. On one hand turnover is down, therefore training costs are reduced. "But, your problem child sticks around and creates problems," he warned. "Strong managers are needed to avoid employee relations problems."
"I don't know if everybody knows all the challenges yet," he added. "People who have lived through a recession cycle before are better prepared, but even those people need to remember what happens."
According to Streuling, chair of the HR/TD Council, there are positives and negatives to being a human resources practitioner in a recessionary cycle. On one hand turnover is down, therefore training costs are reduced. "But, your problem child sticks around and creates problems," he warned. "Strong managers are needed to avoid employee relations problems."
Because of factors ranging from a collapsed real estate market in many areas of the country to the economic hit of NCUA's decision to conserve U.S. Central and WesCorp, Streuling said CUs are having to make tough decisions they've never had to make in the past.
"Something like losing paid-in capital to WesCorp is out of a credit union's control and you can't see it coming," he said. "Management might have made a promise not to lay anyone off, but then the next day they wish they hadn't said it. How to choose which employees have to go? How to break the news?"
Back to the positive: a recession is an opportunity to get rid of non-performers and streamline operations, Streuling offered. He said employees who are willing to work hard should be recognized.
"It is never bad to examine the operation," he said. "Sometimes this is voluntary; sometimes it is because of circumstances like these. From an HR perspective, this is what is relevant to what is going on."
As with accounting standards, the HR world has seen a surge in legislation during the last three months, Streuling reported. The Family Medical Leave Act saw new regulations, Fair Pay legislation recently passed, and changes to COBRA are in the works, which he said means HR professionals have more to learn.
In an effort to help (in addition to hosting conferences), Streuling said the council has led "virtual roundtables" online to give people a forum to discuss key issues. The increase in interest by lawmakers is "not surprising" to Streuling given the change in leadership from Republicans to Democrats. "Democrats tend to sponsor more social programs."
Streuling predicts a "steady flow" of job losses to continue over the next few months, which may trigger another wave of problems. "People have been living on credit cards - what will they do, especially if a spouse loses his or her job? By summer, I'm hoping things will start to turn and job losses will taper off."
