Human resource management in recession: Restructuring and alternatives to downsizing in times of crisis

In just over a decade two global crises have created significant instability across the world and plunged many national economies into recession. While studies of HRM during economic downturns are limited, the global impact of COVID-19 on employment adds impetus to the debate. Though downsizing and mass layoffs attract most attention, redundancies are just one potential response to challenging economic conditions, and various other employment adjustments might be viewed as complements or alternatives to workforce reductions. However, little is known about the implementation of HR practices or enactment of HR strategies during recession. Drawing upon 56 in-depth interviews, this article presents three case studies of recessionary restructuring in British manufacturing firms. The cases share a concern with mitigating redundancies and highlight the importance of actor agency as well as institutional and organisational context in shaping restructuring outcomes. The article contributes to HR theory regarding HRM in recession and employment restructuring.

Analysis Of the Effectiveness of Risk- Based Internal Audit Implementation: A Case Study: Acces la Success

Background: Risk Based internal audit is a control and supervision activity carried out by internal auditors using the output of risk management. Purpose: The purpose of this study was to obtain a comprehensive understanding of the implementation of risk based internal audit at BPJS Ketenagakerjaan. Internal auditors need to know about risk management and risk maturity to identify key areas that require immediate supervision and follow-up. Method: This research is a case study qualitative research with a descriptive approach. Data was collected by means of interviews, observation and documentation. The analysis technique using triangulation is to collect data, reduce and draw conclusions. Results and findings: Researchers found that Social Security Agency while in Indonesian term is Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan as an institution that is mandated to manage labor social security membership fees and implement good governance and manage business risks. The risk management output is then used as the basis for conducting an internal audit. Discussion: BPJS Ketenagakerjaan carries out risk management to identify risks, identify areas that have potential risks and carry out risk profiling. This makes it easier for internal auditors to carry out the internal audit process. Impact: The results of risk management make it easier for auditors to identify risks and identify specific areas so that internal audits can run effectively and efficiently.

The impact of fear of external threats on unethical pro-organizational behavior

Within the context of the current global economic crisis, employees generally have a high level of fear that may lead them to use unethical pro-organizational behavior (UPB) to increase their sense of control. We used self-control theory to explore the mechanisms and boundary conditions of employees' fear of external threats and how this affects their levels of UPB. We conducted a twowave survey of 544 finance personnel in China. The results indicated that fear of external threats was positively correlated with UPB and that sense of control mediated this relationship. Perceived ethical climate reinforced the negative relationship between sense of control and UPB, which, in turn, weakened the positive effect of participants' sense of control, whereas fear of external threats increased the incidence of UPB. Implications are discussed.

Unanticipated consequences: Lack of essential and nonessential patient care, furloughs of health care providers, and institutional financial losses

The COVID-19 pandemic caused large reductions in the use of medical services due to the cancellation of nonessential care and elective surgeries by providers and the avoidance of medical care by patients. As a result, health care providers sustained substantial financial losses. This resulted in layoffs and furloughs for health care personnel, adding economic stressors to health care providers who were already working under difficult conditions. The financing mechanisms for health care and structural features of the health care delivery system contributed to these large unanticipated consequences. Policy initiatives have the potential to reduce these adverse effects. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022. All rights reserved.

The Office Market Reckoning is Nigh

Occupied space, rents, sales transactions volumes, and sales prices were all posting record levels, while vacancy rates had fallen to their lowest level since the Great Financial Crisis (GFC). Few firms went bankrupt as generous government relief programs kept them solvent. [...]most office tenants could only exit their leases once their lease period ended. The office vacancy rate has risen over 400 basis points to 15.7%, the largest Increase In any property sector since 2019.3 A Smaller Corporate Footprint For now, the vacancy rate remains below Its GFC peak, but all signs suggest that vacancies will continue rising In the coming quarters to reach record levels as tenants give up more space than they lease. Most of that space will eventually be counted as vacant landlord space once the leases roll from the tenants' responsibility. [...]expect vacancy rates to spike over the next two years unless firms abruptly begin to lease more space than they have been.

Build resilient enterprises with resilient people: the case of ASK Consulting

PurposeWhile strong risk management and contingency planning are important for building capabilities useful for quick adaptation to foreseeable disruptions, they may not be useful for preparing for black swan-type events or situations that lack sufficient precedent to understand how they impact businesses. The key to creating a resilient organization relies most on resilient human capital, who are capable of withering whatever changes Chance may throw at them and the organization.Design/methodology/approachUsing company data and semi-structured interviews, this paper presents the case study of ASK Consulting, a medium-size entrepreneurial enterprise that learned that human resources are the cornerstone of a resilient organization.FindingsResilient people exhibit three common traits: discipline, open-mindedness to change, and a sense of service to the team rather than themselves. Insights about these traits can be elicited by asking prospective employees three questions during their interview.Practical implicationsThis case provides an illustrative case study and straightforward guidance for identifying whether a job candidate has the traits of a resilient person.Originality/valueMuch of the research into organizational resilience focuses on scenario planning, contingencies, and building organizational capabilities. This provides a much more straightforward and actionable approach that focuses on only one type of resource and is not contingent on the availability of slack time and money to implement.

Temporary layoffs, short-time work and COVID-19: the case of a dual labour market

PurposeThis paper aims to study the type of short-time work (STW) schemes implemented in Spain to preserve jobs and workers' incomes during the COVID-19 crisis and the corresponding labour market outcomes. Design/methodology/approachA dynamic macroeconomic model of job creation and destruction of the search and matching type in a dual labour market. FindingsThe model shows that the availability of STW schemes does not necessarily prevent a large increase in unemployment and job destruction. The quantitative effects depend on the degree of subsidization of payroll taxes and on the design of the policy. A scenario with a moderate degree of subsidization and where the subsidy is independent of the reduction in hours worked is the least harmful for both welfare and fiscal deficit. The cost of such a strategy is a higher unemployment rate. Concerning heterogeneous effects, the unemployed are the ones who experience the strongest distributional changes. Originality/valueThe effectiveness of STW schemes in dual labour markets using a search and matching model in the context of the COVID-19 crisis has not been analysed elsewhere. The literature has emphasized the importance of dynamics, labour market institutions and workers' heterogeneity to understand workforce adjustment decisions in the face of temporary shocks to de- mand especially when firms' human capital is relevant. These elements are present in the model. In addition, this paper computes welfare and distributional effects and the cost of these policies.

Internationalization and innovation orientation as factors of employee learning and development adaptation during Covid-19: Evidence from Polish SMEs

Objective: The driving aim of this study is to test whether small and medium-sized enterprises (SMEs) with a higher level of internationalization and innovation orientation were able to adapt their training and development activities during Covid-19 quicker and better than others. With no or very few studies investigating employee learning and development adaptation in SMEs, we address an important research gap. Research Design & Methods: We tested the hypothesized relationships on a sample of 214 Polish SMEs. Data was collected using the computer-assisted telephone interview (CATI) method. The logit model and ordered probit model were employed to analyse the data. Findings: While the results clearly indicate that innovation orientation had an impact on the adaptation of training and development for Polish SMEs during the first year of the Covid-19 pandemic, internationalization did not exhibit any significant impact on the number of training sessions conducted during the first year of Covid-19. However, the existence of prior experience with online technologies may have moderated the relationship between internationalization and adaptation of learning and development. Implications & Recommendations: To become quick adapters, SMEs should develop an innovation orientation, implement online learning practices and foster mutual learning within the organization, and take every opportunity to learn from external partners. Contribution & Value Added: With this study, we contribute to the body of knowledge investigating SME adaptation during Covid-19. This research implies that innovation orientation can positively influence how firms adapt their training and development in times of crisis. This pioneering contribution is an important piece of the puzzle of what might determine the competitive advantage of some SMEs over others in years to come.

Permanent layoff and consumer credit card loss forecasting

PurposeThe unemployment rate (UR) is the leading macroeconomic indicator used in the credit card loss forecasting. COVID-19 pandemic has caused an unprecedented level of volatility in the labor market variables, leading to new challenges to use UR in the credit risk modeling framework. This paper examines the dynamic relationship between the credit card charge-off rate and the unemployment rate over time.Design/methodology/approachThis study uses quarterly observations of charge-off rates on credit card loans of all commercial banks from Q1 1990 to Q4 2020. Univariate, multivariable, machine learning, and regime-switching time series modeling are employed in this research.FindingsThe authors decompose UR into two components – temporary and permanent UR. The authors find the spike in UR during COVID-19 is mainly attributed to the surge in temporary layoffs. More importantly, the authors find that the credit card charge-off rate is primarily driven by permanent UR while temporary UR has little predictive power. During recessions, permanent UR seems to be a stronger indicator than total UR. This research highlights the importance of using permanent UR for credit risk modeling.Originality/valueThe findings in the research can be applied to the credit card loss forecasting and CECL reserve models. In addition, this research also has implications for banks, macroeconomic data vendors, regulators, and policymakers.

Layoffs and stock market performance during the COVID-19 pandemic: evidence from the US

PurposeThe authors examine the short-term stock market reaction surrounding US layoffs during the coronavirus disease 2019 (COVID-19) period. The authors' specific interest is on any changes that may be observed in US stock markets during the COVID-19 outbreak. This information will help us assess the extent to which policymakers adopted at time revenue and expenditures measures to minimize its negative impact.Design/methodology/approachThe authors study the linkage between layoffs announced by firms and stock markets in US for the COVID-19 period between March 2020 and October 2020. This period shows important economic figures;a huge number of job cuts announced by blue-chip companies listed in the New York Stock Exchange (NYSE) due to widespread economic shutdowns. The authors examine whether and to what extent stock markets in US have reacted to layoff announcements during the COVID-19 pandemic using an event-study methodology.FindingsThe study's results show that US layoffs during the pandemic did not cause any abnormalities on the stock returns, either positive or negative. Based on the mean-adjusted volume, the authors find that layoffs increase the stocks' trading volume, especially on the event date and the day following the event. US stocks become more volatile on the days following the event. Interestingly, on the event date, the authors find that stocks get the highest abnormal volatility;however, the result is statistically insignificant.Practical implicationsThe authors suggest that layoffs announcements follow the business cycle quite closely in most industries. The study's results have implications for investors, regulators and policymakers as they permit to examine the effectiveness of the measures adopted.Social implicationsThe study's results show that policymakers reduced uncertainty implementing intensive measures quickly and should follow similar policy in the future pandemic and/or unexpected events.Originality/valueThis paper contributes to the literature in two directions: First, to the best of the authors' knowledge this is the first study that provides empirical evidence and assesses the extent to which a major global shock such as the COVID-19 pandemic may have altered the reaction of US stock markets to layoff announcements. Second, this is the first study on this topic that examines volume and volatility abnormalities, while the authors check the robustness of the findings with different methods to calculate abnormal returns.

The Great Resignation: the great knowledge exodus or the onset of the Great Knowledge Revolution?

PurposeThe purpose of this Real Impact Viewpoint Article is to analyze the phenomenon of the Great Resignation from the knowledge management perspective.Design/methodology/approachIt applies the knowledge-based view of the firm to the notion of the Great Resignation, reviews the extant literature and relies on secondary data.FindingsThe Great Resignation has created numerous knowledge-related impacts on the individual, organizational and national levels. On the individual level, because of an accelerating adoption of freelancing, the future may witness an expansion of the category of the knowledge worker and a growing need for personal knowledge management methods and information technologies. Organizational effects include knowledge loss, reduced business process efficiency, damaged intra-organizational knowledge flows, lower relational capital, lost informal friendship networks, difficulty attracting the best human capital, undermined knowledge transfer processes and knowledge leakage to competition. Countries may also witness the depletion of national human capital.Practical implicationsManagers should learn how to use the available human capital more efficiently;realize the importance of universal succession planning programs;automate knowledge-centric business processes;facilitate knowledge-based IT initiatives by implementing self-functioning virtual communities, including enterprise social networks;restructure organizations to optimize intra-organizational knowledge flows;adjust strategies, products and target markets based on the available human capital;and create telecommuting conditions for people with disabilities who cannot be physically present. Knowledge management scholars are presented with a unique opportunity to convert the numerous theoretical insights accumulated within the boundaries of their discipline into practical application to facilitate the Great Knowledge Revolution.Originality/valueThis viewpoint offers managerial recommendations and inspires future Great Resignation investigations.

Job loss and food insecurity during the Covid-19 pandemic

PurposeLiving a nutritious lifestyle requires that people get a sufficient amount of nutrients, vitamins and minerals every day. Healthy dietary practices are related to a stronger immune system, better prevention and easier recovery from illnesses, lower blood pressure, healthy weight, lower risk of diabetes, heart problems and other medical conditions and improved overall well-being (WHO, 2020). Therefore, to maintain a strong immune system able to prevent diseases and ease recovery, optimal nutrition and healthy habits are of increased importance during a pandemic such as Covid-19. However, according to the Bureau of Labor Statistics, more than 22 million Americans have lost a job between February and October 2020, increasing the unemployment rate from 3.5% in February 2020 to 6.9% in October 2020, reaching a peak of 14.7% in April 2020. Job losses during the Covid-19 crisis are likely to put lots of families at risk of malnutrition and food insufficiency and to further deteriorate the already existing food insecurity (Gundersen et al., 2018). This research explores the effect of a recent job loss between August and October 2020 on food sufficiency.Design/methodology/approachThis research examines the impact of a job loss on nutrition and food safety. Specifically, this study explores the effect of a job loss during the Covid-19 pandemic on the level of family and child food sufficiency as perceived by the respondent, confidence about meeting family's dietary needs in the four weeks following the interview, and an indicator of whether the food sufficiency status of the family has deteriorated or not. This study also determines the differential effect of a job loss by individuals who are still employed despite the loss relative to workers who remained unemployed after a job loss during the Covid-19 crisis. Subsample analyses based on ethnicities, genders and educational attainment are also performed to identify the most vulnerable groups.FindingsThe results provide evidence that a job loss is associated with a highly statistically significant deterioration of food sufficiency for families and children and a reduction in the confidence in food security for the near future. This effect is observed for all job losers, but from them, it is larger for the ones who are currently unemployed compared to those who are working. The association between a job loss and family's nutrition insecurity is the greatest for Hispanic, males and people with some college. Children's nutrition suffers the most for children whose parents have not completed high school. These results provide an insight into the adverse effect of Covid-19 on food security.Practical implicationsFrom a policy perspective, the results indicate that federal nutrition programs whose goal is to ensure that the dietary needs of Americans, and especially children, are met, which are most likely to benefit the Hispanic population, individuals with low educational attainment and individuals who remained unemployed after losing a job.Originality/valueThis study makes several contributions to the growing literature on food security. First, this study is novel in that it examines the effect of an ongoing event, specifically a labor market disruption as a result of a health and economic crisis, on families' nutrition, and does so using the newest publicly available data designed to track the impact of Covid-19 on the American population. This is one of the first studies that investigates the forementioned impacts in the context of the Covid-19 pandemic. This study further contributes to the literature by distinguishing between employed versus unemployed individuals despite a job loss and by studying distinct groups on the population. In addition, this study compares the effects of interest in the onset of the pandemic to a year later to examine the population's adjustment to the crisis. The importance and relevance of the results for policy decision-making are also discussed in the paper.

Are sustainable firms more profitable during COVID-19? Recent global evidence of firms in developed and emerging economies

PurposeThis paper investigates whether sustainability performance (SP) protects financial performance (FP) for firms in both developed and emerging economies during the COVID-19-induced economic downturn.Design/methodology/approachUsing a recent sample of firms in 34 countries between 2003 and 2021, the authors employ ordinary least squares regressions, moderations and the Heckman two-step method to test the hypotheses.FindingsFirms with strong SP have higher FP in developed and emerging economies in the upcoming year. During the COVID-19 crisis in 2020–2021, the impact of sustainability on FP is pronounced in developed but not in emerging economies. Furthermore, cross-listings expose firms in emerging economies to high-standard institutional mechanisms in developed economies. Thus, sustainable firms in emerging economies cross-listed on European stock exchanges are more profitable.Practical implicationsFor regulators and standard setters, the global-level comparative analysis helps them find solutions that may assist firms in improving SP globally (e.g. mandatory reporting) and enduring crises resiliently. For institutional investors, the study reveals the relatively different impact of sustainability risk for firms in developed and emerging economies. For practitioners and private sector firms, this study contributes to the dialogue on what makes firms more resilient in COVID-19. Although COVID-19 might be temporary, the lessons learned could protect firms from future crises.Originality/valueThe authors contribute to the contingency perspective between sustainability and financial performance by providing recent empirical evidence in a global setting during the COVID-19 pandemic. The authors demonstrate how different external institutional mechanisms (rule-based governance and relation-based governance) and cross-listing affect the SP-FP relationship during a crisis. The authors extend the knowledge in crisis management literature with a comparative study and fill the research gap on how SP affects FP for firms in emerging economies compared to developed economies.

Scientists' job joy stays strong

The article reports that the U.S. National Science Foundation reported that job satisfaction among U.S. scientists and engineers with Ph.D. in 2021 remained high and how COVID-19 affected work status, leading to part-time work or no work due to pandemic-related family responsibilities and layoffs.

Subsidizing Labour Hoarding in Recessions: The Employment and Welfare Effects of Short-time Work

Short-time work (STW) policies provide subsidies for hour reductions to workers in firms experiencing temporary shocks. They are the main policy tool used to support labour hoarding during downturns and were aggressively used during the coronavirus disease 2019 (COVID-19) pandemic. Yet, very little is known about their employment and welfare consequences. This article leverages unique administrative social security data from Italy and quasi-experimental variation in STW policy rules to offer evidence on the effects of STW on firms' and workers' outcomes during the Great Recession. Our results show large and significant negative effects of STW treatment on hours, but large and positive effects on headcount employment. We then analyse whether these positive employment effects are welfare enhancing, distinguishing between temporary and more persistent shocks. We first provide evidence that liquidity constraints and rigidities in wages and hours may make labour hoarding inefficiently low without STW. Then, we show that adverse selection of low productivity firms into STW reduces the long-run insurance value of the program and creates significant negative reallocation effects when the shock is persistent.

Post-pandemic resume and cover letter strategies

Most of us had unique work experiences during the heart of the pandemic. This might include layoffs, furloughs, sabbaticals, job changes, new responsibilities, work from home, restricted travel, virtual company meetings and job interviews, virtual customer visits, stringent safety protocols, new learning, upskilling and personal achievements that helped your employer stay profitable (or afloat). If you have not done so already, it is time to think about and document your proudest accomplishments during the pandemic, including how your experience can benefit an employer in the post-pandemic job environment. Much of this experience can be included in either your resume or cover letter (or both). When you describe your pandemic-era accomplishments in your resume, display your adaptability, creativity and leadership skills to employers. Here, Pelczarski looks at what types of special, unique and/or unusual experience and accomplishments from the pandemic job environment can be included in your resume and cover letter.

The unemployed with jobs and without jobs *

Potential workers are classified as unemployed if they seek work but are not working. The unemployed population contains two groups -those with jobs and those without jobs. Those with jobs are on furlough or temporary layoff. This group expanded tremendously in April 2020, at the trough of the pandemic recession. They wait out periods of non-work with the understanding that their jobs still exist and that they will be recalled. We show that the resulting temporary-layoff unemployment mostly dissipated by the end of 2020. Potential workers without jobs constitute what we call jobless unemployment. Shocks that elevate jobless unemployment have much more persistent effects. Historical major adverse shocks, such as the financial crisis in 2008, created mostly jobless unemployment and consequently caused extended periods of elevated unemployment. Jobless unemployment reached its pandemic peak in November 2020, at 4.9%, modest by historical standards, and has declined at a faster-than-historical pace since.

The Role of Community Food Services in Reducing US Food Insufficiency in the COVID-19 Pandemic

(p. 2 2016) suggest that "both public and private food assistance programs serve as important mechanisms to tackle the problem of hunger and food insecurity in the United States." Using the HPS data, Bauer (2020) shows that low-income households with children are more likely to suffer food insufficiency and enroll in food assistance programs (e.g., SNAP, WIC, and Pandemic Electronic Benefit Transfer) during the pandemic. Instead of using the free food access variables from the HPS, we therefore draw on the 2019 County Business Patterns data (US Census Bureau, 2019) to shed light on the role of preexisting Community Food Services (CFS) in mitigating food vulnerability in the states during the current pandemic. [...]while the number of such establishments per 10,000 persons may have changed between 2019 (the most recent year for which data are available at the time of this writing) and March 2020, we suggest that once we control for the main driving forces, such as the spread of the disease and unemployment, which can affect both food insufficiency and CFS capacity, the 2019 CFS establishments per 10,000 persons variable is a reasonable proxy for the amount of experience a given state has with CFS and related establishments and its capacity to deliver free food through such a venue.

Times of uncertainty: The psychological and behavioral impact of employment uncertainty on furloughed workers and the moderating effect of work orientation

Although furloughs have been used by organizations for some time, their use increased sharply during the COVID-19 pandemic. They differ from layoffs in the uncertainty they involve around the employment relationship. However, the phenomenon has received little attention from research on involuntary job loss, and the impact of the employment uncertainty it involves is largely unknown. Furthermore, the moderating factors that differentiate the impacts across employee populations are also unclear. In this dissertation I report a mixed-method field study examining the impact of employment uncertainty on furloughed workers and the moderating role by their work orientation. To guide the development of hypotheses, I conduct a qualitative analysis of semi-structured interviews with 28 furloughed employees. I then test my predictions with furloughed workers from various industries. Results suggest that employment uncertainty increases furloughed workers' negative emotions while decreasing their occupational commitment. The behavioral impacts of uncertainty include hedging and "live like working," mediated by occupational commitment. Furthermore, one's work orientation moderates the adverse impacts of uncertainty such that the effects are alleviated for someone with a stronger sense of calling orientation but worsened for someone with a stronger sense of job orientation. The theoretical and practical implications of the findings are discussed. (PsycInfo Database Record (c) 2022 APA, all rights reserved)

Post-Crisis Management: Covid-19, Public Policy & Impact on the Corporate Strategy

The Coronavirus within a short span of time has done enough to disrupt the global supply chains, investor sentiments, financial markets, and economic activity on a massive scale. The global economy of the entire world has been hamstrung and lies in tatters. Further, hundreds of millions of workers are being locked up in homes and face pay cuts and lay-offs if there is no respite in the fear pandemic. The viral wave moving across continents taking a massive toll as governments fight an unfamiliar and unanticipated fight against the virus, companies shutting operations, and normal life coming to a screeching halt. The COVID-19 crisis is catastrophic as we are unequipped to deal with the magnitude of the challenges thrown at us and severe time constraints to get equipped with the medical machinery to fight it. The baffled governments globally initiated rapid action but failed to have any bearing on the financial markets or ameliorate the situation in any way, except the lock-downs that potentially scuttle any efforts in ramping up capacities to effectively tackle the lethal virus, apart from colossal economic and societal costs. This exploratory study attempts to review and evaluate the unusual virus to humankind, its economic and policy effects, and suggest some practical policy prescriptions to tide over the public health-cum-economic crisis. The first and second sections bring out the uniqueness of the COVID19-triggered health emergency and accordingly set the objectives of the study and methods used. The third and fourth sections evaluate the socio-economic and financial fallout of the crisis and the unprecedented fiscal-monetary stimulus strategies resorted to globally. The fifth section specifically focuses on the highly populated Indian economy and the visionary ways of the largest ever fiscal-monetary impetus in the backdrop of a potentially high fiscal deficits scenario. The sixth section evaluates the impact on the Corporate Sector and success tactics of the FMCG & Pharmaceutical sectors. The last section essentially weighs various policy actions, impacts, and a few recommendations for policy effectiveness, besides conclusions.