HR strategy in leaner times: lessons from Canadian HR leaders

“This disproportionately impacts HR.”

So says HR executive Annabella Tamburro, in discussing the impact of cost-cutting amid economic uncertainty.

When resources are limited, the ability to prioritize becomes paramount, said the vice president of human and corporate capital at Canso Investment Counsel, speaking at the recent HR Leaders Summit in Toronto.

“With small teams, there's only so much realistically that you can deliver in terms of HR initiatives and programs and maintain. And, also, on a macro level, you think about our current economic uncertainty — so many organizations are cutting budgets and spending. And what I find is this disproportionately impacts HR.”

‘Saying no’: Aligning HR with business strategy

As organizations face economic uncertainty and tighter budgets, many HR professionals are being asked to do more with less — without losing sight of their core mission: supporting people and driving business outcomes.

A recent panel of Canadian HR leaders sat down at the HR Leaders Summit Canada to discuss the challenges — and viable solutions for HR.

Kim West, senior vice-president and head of human resources at Cineplex, emphasized the importance of strategic alignment.

“Make sure that everything you do is perfectly aligned with strategic priorities,” she said, with HR facing demands that raise the question: “Does this meet our strategic goals and objectives?”

“And, if not, [HR needs to say] ‘I’m sorry, I can’t help you today, that’s not on our priority list… let’s talk about how can we help you going forward in the new year.’”

West acknowledged that this can be “painful” for HR professionals, who are often natural people-pleasers, but it’s essential for sustainable impact.

Tamburro agreed that it’s essential for HR to align with the business.

“It's very easy, even as HR leaders, to get caught up in the new thing that's coming out because there are always new… initiatives and programs and new ideas that we want to adopt to show that we are really forward-thinking, innovative teams.

“But what happens is we lose sight… Our strategy has to align to the business. And some of those really nice things that we want to do… are just going to be more work for the team that still has to follow the business and their strategy. I think that is really hard for us to do.”

It’s also difficult to say “no” because HR is fighting a stereotype every day, said Julie Develin, senior partner, HCM advisory and human insights at UKG: “We want to be perceived as not just [working] for the company.”

‘There may be better options’

In a resource-constrained environment, curiosity and engagement are more important than ever. Develin argued that curiosity should be the umbrella over all HR activities.

“It’s saying, ‘OK, just because this is the way we've always done it, that doesn't necessarily mean this is the way that we still have to do it. There may be better options out there for us,’” she said.

“Which of those things are working and how can we double down on those things and make them work in other places?”

It’s also important for leaders to recognize they don’t have all the answers, or necessarily the knowledge, said Develin at HRD Canada’s HR Leaders Summit.

“Often times, we assume we understand what's going on in other areas of the organization. But we have to start asking the right questions. And in some cases, asking questions in the first place.”

Tamburro echoed this sentiment, citing the importance of exploration.

“I'm curious about the people who work with me and in my organization. I'm curious about what they know how to do, and what they could do, what they’re good at, what they want to be better at.

“I’m curious about the data, curious about what story that data tells me, and I'm curious about the leaders I support, and what’s going on with them and how they’re doing.”

Investing in HR skills, data mining

As indication of the importance of evolving skills, West highlighted the need for financial literacy among HR professionals.

“I cannot show up at work today without knowing exactly what we did at the box office: ‘What did we do at concession? Where did we miss? What movie didn’t [do well] this weekend?’ Because that will change our decisions for the rest of the week.”

To support the business effectively, HR must first invest in its own development, said Jennifer Bond, vice-president of human resource operations at the Ontario Power Generation (OPG), describing its 12-month, mandatory training program for HR called “HR Excellence.”

“It gave a baseline of digitalization and automation; they got first crack at the use of tools like Microsoft Copilot. It also embedded the means of change resilience and how to command presence and things of that nature.”

In looking to be less reactive to situation, HR business partners at OPG are shifting the way they support the business, she said, in taking a deep-dive into people health data, such as succession plans, grievance metrics, overtime and sick leaves.

“And they have to mine the data. They have to put together the presentation. They have to be able to analyze the data, pull out trends, and help drive actions with their client groups. And those skills didn't necessarily exist within our HR business partners before, but we’ve helped them with this training program build those muscles,” said Bond.

Using trusted data to tell a story

Develin underscored the importance of using data when it comes to HR initiatives – especially in lean times.

“What you’re doing is you’re telling a story; you're telling the story of your organization… and enabling your people, and especially your managers, to be able to have a visual into what’s going on in the day to day, so that way… they’re not making those decisions based on assumptions, they’re making them based on data.”

But trusting that data is crucial, she said.

“When we’re talking about doing more with less, it’s even more important to have that clarity, and accuracy so that way we’re able to work towards the mission, vision of the organization and also keep employees engaged.”

Finding hidden skills of employees

A final consideration for HR when it comes to lower cost options amid uncertain times is reskilling or upskilling, said the panel at the HR Leaders Summit.

And for that, HR needs to help managers to develop their talent while also mining the organizations for talent, said Develin.

“If you think about how many people today are working second jobs or third jobs... we may have folks who have skills that they can utilize in current roles that we have open… it’s about the conversations we’re not having.”

Develin suggested practical tools such as “entrance interviews” to uncover hidden skills and career aspirations early in the employee lifecycle.

“An entrance interview is something that's done, say, after the first 90 days of employment, when you’re having a targeted conversation with new hires… [and] ask people ‘Where do you see yourself in a year, two years, three years? How can we help you get there?’

“By having those conversations early with people, you can get a pulse for sort of what their mentality is. Maybe that's a time when they reveal some of those hidden skills to you as well.”

And if HR or management formally takes note of those skills, they can refer back to them when a position needs to be filled, she said: “Oh, so and so has XYZ skills.”

Bond pointed out that investing in employee growth is crucial for engagement, especially with a multigenerational workforce: “That new generation entering the workforce, that investment in them is really what makes them tick, compared to other generations.”