· News

Exclusive: HR directors are pessimistic about the economy short-term but optimistic about it longer term

Seven out of 10 HR directors think the global economy will get worse over the next six months but 56% predict improvements over the next year.

According to a poll of HR directors and vice presidents carried out by Talent2 and Ipsos MORI, a third think things will get worse for their organisation over the next six months but in the longer term 70% predict a more positive outlook.

More than nine out of 10 (95%) have seen freezes or cuts in their HR budget and 82% have been forced to make changes to their HR strategies  - but 58% think these changes will be long term with the remainder focusing on short-term changes.

Six out of 10 have seen a shift from more strategic plans to operational and tactical initiatives.

Commenting on the findings, Simon Murphy, a director at Talent2, said: "For many, HR strategy has been put to one side while HR teams deal with practical issues and fire- fighting during the recession.

"The difficult recession has put more of an onus on keeping people happy and enhancing performance in organisations. It is nice to talk about strategy but for many tactics have become just as important."

Nearly nine out of 10 respondents (88%) believe senior management in other functions think HR has some or a big influence on performance. But there was no direct link between this and budget available.

The poll also showed the recession is having a positive effect on engagement - 80% are measuring engagement and 23% have reported positive effects, with 52% saying engagement has remained stable in their organisation.