The headcount reduction is a good opportunity for the HRM Function to show the basic role of Human Resources, as it is defined in the Ulrich’s Model. The Business Partnering HR Model is very hard for the HR Employees as they have to be real experts in Human Resources and they have to have a deep understanding of the business.
The headcount reduction is a very complicated decision. When the organization decides about the headcount reduction, it has to precisely select the areas for the headcount reduction. The decision about the general decrease in all the units can make huge damages, which can least for years to overcome.
The HRM Professionals have a good opportunity to demonstrate their detailed knowledge of the business, the competitors, processes and procedures inside the organization. The HRM Professionals have to apply the complex approach to carefully select the areas, which can be reduced with the major impact on the rest of the organization.
The HRM Professionals have to demonstrate their strategic vision of the organization and the deep knowledge of the products and services with the highest value added to the organization. The HRM Function has to understand the basics of the business, the basics of the financial management and it has always to understand the costs of the human capital of the organization.
The HRM Function has to demonstrate the ability to identify potential gaps at its internal clients and it has to provide the advice to them how to fill them. The headcount is not usually allocated fully correctly and the HRM Professionals have to be able to show the gaps and they have to be able to argue with the managers in the discussions.
The HRM Role as the Business Partner is not the easy role for the HRM Function and the headcount reduction is one of the most difficult roles for the HRM Function. The managers have to trust in the advice provided and the top management has to trust the HRM Function in the successful implementation, without rumors and with the small impact on the employees.
