The Role of HR in Crisis Response and Business Continuity

Seattle CHROs experienced the first U.S. case of COVID-19 in their home state and in rapid fashion had to implement business continuity plans, stand up new communication channels and weigh-in on strategy to best position their organizations in a fundamentally changed business environment. The state of Washington’s early response to the pandemic appears to have helped “flatten the curve” and avoid the worst-case scenarios. Private business and public organizations look forward to guidance from the Western States Pact (an agreement between California, Oregon and Washington) to reopen the economy.

In this virtual gathering, participants discussed the value of their role in crisis response. To set the stage, Seattle CHROs responded to a survey prior to the town hall indicating the following:

41% are continuing standard business operations at a reduced level

34% expect to return to standard business operations in 3-6 months 

33% report a high impact on their organization’s revenue

41% predict a high impact on their organization’s budget

This virtual panel was moderated by Sheila Murty, EVP of People and Culture at Tillamook. Murty was joined by Michelle Cutter, SVP of Human Resources at Ste. Michelle Wine Estates and Mindy Geisser, Chief People Services Officer at Savers. Their industries face different challenges, but the key components for operating during this crisis are nearly universal. 

Immediate Response

Right out of the gate, Seattle CHROs had to implement modified business continuity plans and convened decision-making task forces as COVID-19 began to spread. Some businesses who were hit particularly hard took a “keep the doors open” approach in order to keep as many associates employed as possible. When “stay at home” orders were delivered, within 24 hours, many drastic measures had to be taken in order to keep businesses operating. Those that could work from home did so. Those who worked as essential employees worked under altered operations for health and safety reasons. Right-sizing the corporate team, cash conservation and pay cuts for those who are still employed were all immediate responses. The retail sector was hit particularly hard, and large-scale layoffs were the only choice.

In order to accomplish this all in a compressed time frame, HR departments are as busy as ever and working around the clock in some cases. They are responsible for managing employee concerns, changing benefits, rolling out new communication channels, and keeping up on the array of state, federal and global regulations. On top of that, HR departments must put together recruitment strategies ahead of phasing up the workforce when stay at home restrictions end.

Putting People First

The pandemic made one thing crystal clear for HR leaders: the health, safety and well-being of their employees and customers is paramount. For those with furloughed or laid off employees, how do you stay connected with them in this interim time and provide information and resources they need? For those with essential workers, how do you equip managers with the toolkits to implement vital health and safety policies? In a cost conservation climate, how do you prioritize and promote healthcare benefits? Responding to these questions with people-centered action is at the heart of HR leadership.

Working through this crisis has changed the way people see one another, especially as remote work is commonplace. It is encouraged to be more human in these times. Showing pets, telling jokes, seeing the CEO without a haircut, attending virtual happy hours all show that every colleague has a home and life outside of work. It is breaking down barriers between employees and may even have positive implications on diversity and inclusion.  

Future Outlook

Going through COVID-19 will change the office worker forevermore. Managers previously closed to the idea of working from home will have a harder time justifying that employees need to show up at the office in order to get their job done because it has been proven in this moment.

Forced to make difficult decisions and halt business-as-usual, HR leaders are going to be better at gaining clarity on what business areas are vital and being comfortable working in an accelerated and agile fashion. In addition, there are no “lanes” anymore. This moment requires an HR voice on the business side and the courage to demonstrate value.

Progress over perfection.

Thoughts from the Community

There are far broader economic implications to be aware of: unemployment surging to levels not seen in decades; consumers may be spending less; getting back to public life may be slow and arduous; and how the government responds to help distressed businesses is uncertain. These factors and others will contribute to rethinking business models, cost management, recruitment strategies, and delivering HR support and solutions.

by CHROs, for CHROs

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