Here is what I am thinking about – curious if others are:
Yesterday United Airlines reported that it will cut about 950 pilots jobs. Other airlines in recent weeks have announced that they are cutting planes as well. We have all heard about the airlines now charging for every bag that a passenger flying coach want to check. This will undoubtedly lead to an even madder rush and battle for overhead bin space.
So… fewer flights; more full; less seating and stowage capactiy; more oppotunity for tension with fellow passengers; fuel surcharges driving up ticket prices. More time and more money to fly.
I am thinking that the nature of business travel is going to change rapidly between now and Q2 2009. Companies are going to want to cut back on travel budgets due to their own expense structure, just at the point that the hard and soft cost (time, aggrevation) are going through the roof.
Is this an opportunity for HR to get a head of the curve? Should we wait for the CFO to either issue a policy memo saying (more or less) “no more travel without my approval: or better but still bad, telling you to issue it. Or, is this the opportunity to walk in and say – “I have looked at our travel costs; I have looked at the environment; I have some ideas about how we should talk to people about how to get the work of the day done with less airline travel – I thought you would be interested in hearing them…”
5 Comments, Comment or Ping
Sounds like an opportunity for virtual workplaces, remote working, and virtual collaboration. The co-working phenomenom might be explorable on the corporate level as well.
June 25th, 2008
Honestly I don’t think this is the conversation HR should lead. I often see HR Leaders trying to compete with the Finance Leaders in cutting cost and I don’t see any differentiated value in it.
What about discussing how in an environment of cost constraints we can leverage technology and communication tips in order to build trust or at least minimize the chances of this being eroded? What about developing the communication strategy to engage the employees in a collective effort to reduce costs?
I think HR has to add in its area of expertise, if any, considering businees conditions, and not try to play the role of being more business oriented than anyone jumping in oportunistic discussions.
June 25th, 2008
Thanks for two thoughtful comments. All of the remote stuff is right on point – you don’t even need the airline issues – $4 – $5 a gallon gas gets you there!
I hear you Uxio Malvio on not being opportunistic and jumping into the “we can cut more that the finance guys” game. I guess I am thinking less in terms of policies that say don’t travel, or only travel if the following 17 criteria are met. I am thinking about different ways of working. Better ways to do conference calls or town hall calls. Ways to use file sharing sites on the web. Ways to focus travel for relationship building among groups to increase trust so that face-to-face is not needed as much the next time. Ways of working seems to me to be a core HR competency. Your comment though, sounded pretty on point, I have some thinking to do. Thanks! Hope to see you back here.
June 25th, 2008
I have to say that if I don’t go on an airplane again it’ll be okay with me. It’s really changing rapidly. And the cost is getting nuts. A flight I took last week cost $900, and I bought that same seat in March for $200. Bad.
I think HR has a big role in helping people think about getting things done. I like the thinking about stimulating thought about virtual working and how to save money at the same time. Side bonus? The environment wins, too. With technology and bandwidth what it is now, it seems like video conferences can work great. Better to be out ahead of this curve than having to be asked to respond to it later.
June 25th, 2008
Uxio Malvido, I disagree with you. Finance people are not the only employees that know something about cost cutting, keep costs down, etc, etc. Why shouldn’t anyone, in any department, that sees waste or opportunities for improvement speak up? Who cares if they don’t have a CPA or work in finance for a living.
What if I said to you that since you don’t work in HR you shouldn’t be giving suggestions about benefit packages you don’t like / that don’t meet your nees or the length of the recruiting process? If you’re a manager at my company, it wouldn’t make any sense for me to discount your views on anything – because diverse views from different angles are valuable.
If someone is honestly trying to sabotage someone else (“oh those finance guys, I’m going to really get them this time!”) THAT is not a nice thing to do and doesn’t foster good employee relations. But, really, if someone is just giving a suggestion, what’s the point of being suspicious of their true intent if what they are suggesting benefits everyone?
June 29th, 2008
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