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When someone tells you that recession is coming, our first reaction is never disbelief. I do not know why bad news is believed faster than any good news. Everyone starts reacting quickly and unfortunately without a deep thought.

 1. First reaction is invariably to conserve cash. In this effort, many ongoing activities are stopped or suspended and inevitable casualties include Organization’s Training Program and Recruitments.

2. As one starts conserving cash, decision making tends to get less rational and business plan starts getting changed frequently affecting Business Model of the Company.

3. Everyone tends to believe that recession is here to stay, may be for rest of our life, and tend to loose the site of life beyond recession. Thinking rationally, we must appreciate that all recessions including “The Great Depression” have ended one day.

4. If unfortunately the process of downsizing or right sizing starts, it is also less rational and without any consideration to current and future business models. This also results into an exodus of employees as economy bottoms out making the Organization underprepared for potential growth.

 What can HR do in times of recession?

 1. Keep everybody’s behavior as rational as possible.

2. Increase communication organization wide in all directions to create hope for the future.

3. Changes in Business Model are unavoidable; but its impact on HR can be continuously monitored.

4. Create as many Training Opportunities as possible using internal resources.