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Unformatted text preview: ion for a long time beyond the actual crisis. Employees
freeze their eﬀort when they expect redundancies and
only slowly unfreeze when the situation improves. Trust is
killed and the probability of social unrest rises, which
makes the crisis even worse. Aer layoﬀs in the 2000 and
2004 crises, we learned that this is not the right way. It also
ruins your image as an employer—something we need to
avoid in the extremely tight labor market for pilots and expert technicians.” Exhibit 16. Flexibility Measures Tend to Rank Higher on Perceived Effectiveness and
Examples of cutback measures Above
average 10 8 9 7 2 3 Base salaries are reduced 4 Average
measure Early retirement is increased Bonus payments are cut
back or postponed 5 6 Employees are laid oﬀ 2 1 1 Company events are cut back Average
Examples of ﬂexibility measures
6 Performance management
is tightened 7 Job mobility is reinforced:
employees are trained to perform
diﬀerent jobs within the company 8 Processes are streamlined 9 Average
measure Hiring criteria are tightened 10 Flexible work time is set up 3
Below average Cutback measure 5 Average engagement Flexibility measure Above average Average cutback Average ﬂexibility Sources: Proprietary Web survey with 5,561 responses; 731 responses in this section; BCG/WFPMA analysis.
Note: Size represents the percentage of companies using the measure during the crisis. The lower-le quadrant highlights measures that poison
a company in the long run. Companies that rely on measures such as reducing base salaries, cutting back bonus payments, and eliminating company events will rapidly experience a drain of high-potential and highly valued
employees. The upper-le quadrant includes measures that may be
bitter medicine but work relatively eﬀectively, at least in
the short term: layoﬀs, shortening of the workweek, and early retirement all fall here. The lower-right quadrant contains a single ﬂexibility measure—increasing the proﬁtrelated component of compensation. T B C G • W F P M A Developing Capabilities
for HR to Partner with
the Business Units H R is increasingly positioned as a strategic
partner of the business units in adding value to the company. At many companies,
however, neither HR professionals nor business managers have developed all the skill
sets required for this partnership to ﬂower. While both
groups recognize the need for training and other developmental initiatives, the diﬀerences in their perceptions of the
gaps must be addressed.
For example, business managers view HR professionals’ HR
expertise as less important than their skills in business planning and conﬂict resolution. And, while both groups agree
that business managers’ handling of poor performers is their
most important people-management skill, business managers
see a far smaller gap in their own performance than HR professionals do.
Companies have adopted a variety of initiativ...
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- Fall '13