Atlanta Business Chronicle

As founder of national recruitment firm HRworks, Kurt Ronn has helped companies with large-scale recruiting and executive searches.

Before starting HRworks in 1998, Ronn also worked in senior positions at Federated Department Stores Inc. and Macy’s. He recently shared with Atlanta Business Chronicle his thoughts on the future of the human resources industry.

Q. What will be the biggest change in the human resources industry as a result of the economic downturn? A. Current economic conditions mean that those still employed are handling more work with fewer resources, and likely less compensation. This creates more stress. In the near term, HR needs to place more emphasis on programs for staff motivation, and focus on communicating to all employees, as once the economy starts to turn around, retention will be the largest issue. The better an employer handles the downturn, the more likely they will keep their valued employees when the economy comes back.

Q. How can companies lessen the potential for complaints or lawsuits while undergoing workforce layoffs, furloughs and other cutbacks? A. Most businesses know how to grow, but few know how to shrink. To lessen the potential for complaints or lawsuits during periods of cutbacks, companies should be aware of the liabilities and risks of not handling the process in a fair manner. Employees need to understand what is happening within the company; therefore, accurate and open communication is important for limiting complaints. However, good planning can mitigate potential issues. Before a workforce reduction, employers should seek legal review of their plans by an employment attorney. The expense is worth it, as lawsuits and bad press can sink a struggling business.

Q. How can companies retain top talent, who may be tempted to leave after watching rounds of layoffs, furloughs and other cutbacks? A. Effective communication is the key to keeping good people, especially in tough times. Employers need to discuss the future, including expected roles and opportunities, with their employees and do it often in an effective and honest manner.

Q. What are some unique cost-saving measures companies can adopt instead of laying off employees? A. Reduction in work hours, telecommuting, changes in performance-based compensation and other direct cost reductions have probably already been put into place at most companies. However, as new ideas arise or are implemented, companies need to consider that whatever work-life balance measures adopted now will be difficult to undo at a later date. Shifts in corporate policy, such as flexible work hours, working from home and a more casual dress code could bring challenges around how to handle such policies once the economy recovers.

Q. What techniques can companies use to manage the huge influx of résumés they’re experiencing? A. It is paramount that companies are able to quickly and effectively identify candidates. With hundreds or thousands of résumés flooding companies, it is key that basic qualifications required for the job are well-defined. Vague job descriptions frustrate recruiters, hiring managers and candidates alike. A recruiter needs to be able to quickly review a résumé and deem it a fit for further consideration. Moreover, job-seekers need to understand why they weren’t considered.

Q. What roles have social networking Web sites, such as Facebook, come to play in the job recruiting arena? A. Social networking is one of the most important changes in the recruitment industry since the advent of job boards. Business-related social networking sites like LinkedIn are part of every recruitment project we perform at HRworks. However, utilizing social networking sites, such as Facebook, for recruiting purposes raises the question of what is private and personal information — which has low hiring credibility, versus what is public and work-related information. There is a potential liability that exists for a company that is making hiring decisions based upon non-work-related information, like that found on sites such as Facebook. Individuals post information on Facebook for their “friends” or approved viewers. Employers or recruiters using Facebook as a qualifying tool for candidates need to be very cautious, as hiring decisions should be made based on accurate work-related and job-required data. And Facebook is not an accurate data source for most employment decisions. Companies frequently outlaw the use of Facebook or MySpace from within the corporate environment by excluding access through the company firewall. However, employers need to realize that even with a company policy against using Facebook, some hiring managers will go outside that policy and access Facebook at home. Regardless of where the data is accessed, employers could be subject to an expensive failure-to-hire discrimination case if decisions are made using non-job related information.

Q. In what ways are employers cutting back on benefits and retirement plans to relieve cost pressures? A. Benefits are an expense, and should be evaluated every year. Rather than forcing reduced benefits on employees, one alternative is to offer alternative health plans that are cheaper. The benefits level will be lower; however, a cheaper plan option can save the company money while also enabling workers to keep more cash in their pockets.

Q. In your opinion, what will be the next big trends in the human resources industry? A. Social networking will play a larger role in recruitment. Also, employers will demand that workforce flexibility be built in, rather than repeat the massive reductions in force that we have seen over the last year. HR will need to teach the organization to value those employees who work on project-based work, as opposed to full-time “lifetime” employment.

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