Strategies to Navigate the Recession: New Ways for HR

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Career changers are no longer a risk. And: filling new positions offers opportunities to focus on the need for change. Alexander Wilhelm, Managing Partner at InterSearch Executive Consultants, describes how companies and HR can navigate through the recession. New ways for HR are in demand. Openness to the 55+ generation is one of them. Not creating new jobs in the first place is not an option.

Our customers often criticize the high energy prices and bureaucracy in Germany. Added to this are high taxes, personnel costs, a lack of planning security and increasing demands from employees, which not every company can afford. At the same time, the shortage of specialists and managers is becoming more acute, as many experienced employees will be retiring in the coming years.

Some companies are creating jobs abroad or are increasingly recruiting abroad. This is a balancing act for company management: on the one hand, employees have to be made redundant, while on the other, new employees have to be recruited elsewhere. When expanding international locations, the risks of a long and branched supply chain and the safeguarding of supply capability must be taken into account. It is advisable to establish locations within Europe instead of expanding overseas (keyword “local for local”).

Orientation towards the need for change

Strategies to Navigate the Recession: New Ways for HR
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Managers should fit in culturally with the company and be open to driving forward necessary change processes. This will become increasingly important in the future, but requires an open corporate culture. In future, it is better to avoid searching for the perfect solution. Instead of focusing exclusively on skills and the candidate profile, the position replacement should be seen as an opportunity to focus on the need for change.

Close support during the onboarding process is necessary and the team must be well positioned professionally. Willingness to lead, personality, charisma and creative drive are crucial. If the “final” technical knowledge is sometimes lacking, the personality should be all the more convincing.

Career changers are not a risky choice

Strategies to Navigate the Recession: New Ways for HR
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In times of skills shortages and job cuts, career changers are no longer a risky choice. On the contrary, it is to be welcomed when entrepreneurs break new ground. The risk of not changing anything is greater than the risk of failing with a lateral entry. Those who only ever try to avoid mistakes do not develop further. People who always work on the same tasks may be stuck in a rigid mindset and not easily accept change.

A breath of fresh air can help to change perspectives and bring new ideas into the company. It is important to allow change. It should also be noted that technical knowledge alone is not enough to be a good manager. In the past, it has often been shown that a manager with perfect technical knowledge is not the ideal person for every management role.

New ways for HR: open to the 55+ generation

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I can still remember my first years in HR consulting from 23 years ago. How often did clients ask me to find someone “under 50, more likely in their early 40s”. Fortunately, this has changed over the years. It is pleasing that companies are now also more open to the 55+ generation. Experienced employees are in demand, especially among managers. There is no longer an “old”, but rather experience or less experience. Many 60-year-olds are just as fit as 50-year-olds used to be. If an experienced employee can train a younger colleague for five to seven years, this is more advantageous for the company than waiting two years for a miracle solution.

Let me give you two examples. A few months ago, an international company appointed a 59-year-old female candidate as “Head of International Tax”. Her many years of expertise were convincing. Or a medium-sized manufacturing company that had an ambitious young production manager at one site, but he was not yet ready for plant management. An almost 61-year-old plant manager became the candidate of choice with the aim of handing over the reins to his young colleague in a few years’ time. The goal remained open as to whether the new plant manager would stay on board until his mid-60s or 67 – this is/was dependent on the production manager.

The examples show: Many older employees are willing to work a few days a week and contribute their experience even after the official retirement age. So why not form a “young-old” tandem as described? If, for example, one parent wants to work less for a limited period of time (house building, childcare, caring for parents, etc.), an ideal team could be formed.

Prepare now for the time “afterwards”

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Despite the recession, I warn against not creating new jobs in the first place. It is important to think ahead. If you start recruiting too late, you run the risk of having to wait even longer and missing the train towards transformation. Now is the time to prepare for the phase after the stagnation or recession.

To summarize, the current recession poses major challenges for companies and their HR departments. It is important to be flexible and adapt to the changes. Companies should be open to new approaches and career changers. Experienced employees should not be underestimated and collaboration between different generations can be very fruitful. It is crucial to react to changes in good time and not miss the train towards transformation.

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Foto Alexander Wilhelm

Alexander Wilhelm is Managing Partner at InterSearch Executive Consultants GmbH in Frankfurt. He primarily advises national and international companies from industry - in particular from the automotive, chemical, plastics and energy sectors, mechanical engineering and the public sector. His core competencies include executive search, executive coaching and corporate succession. © Photo: InterSearch Executive Consultants GmbH

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