Declining Dollar & Topline growth - should HR be worried

Switch on the TV or log on to the net, the IT news flash is the concern over the falling dollar and the rising rupee. Yes, common logic simply means that revenues are going to be impacted by this phenomenon. But does it impact HR? Is it the start another 2001-03 era? Are we going into a recession? Is there something to panic? whats going to be HR's role in this cycle?

I was talking to a colleague of mine from the same function. She blissfully remarked, "what difference does it make as long as we get our salaries in Indian Rupees? we will end up working on saturdays which we do as it is."

Yes there definitely is nothing to panic but to worry about; yes. Such a phenomenon may not be a recession but is definitely an indicator of a fast maturing and saturating market. This is when mergers and aquisitions would rule the roost. Markets would consolidate with smaller players either being taken over by biggies or closing shop. This will impact the IT but more so the ITES.

HR definitely has a role to play, the role of a change agent. There would be a requirement from HR for strategic interventions in almost every area of people management. This is not something new, but only that you need to dust the old policy on the rack and put it back in place; bcos what you found outdated after 2001-03 may still help put you back on track.

HR Managers need to start looking closely at:
Billed utilisation
Per employee cost/revenues
Better resource management
Better fresher:lateral ratio
Better training and reskilling

Employee engagement probably can take a back seat. HR will also be required to play the role of a catalyst to facilitate change. Cost containment is going to be the focus and a good HR manager needs to do this without impacting the employee. More centralisation of processes and going back to basics is going to be the mantra.