HR management in Pakistan

LAHORE: Human resource management (HRM) is particularly challenging in countries like Pakistan, where economic downturns, uncertainty and acute skill shortages are prevalent. HR managers are often hesitant to let go of skilled technicians, fearing they might be quickly hired by competitors.

In these difficult times, many Pakistani companies are downsizing to manage prolonged economic sluggishness, especially those facing financial constraints. However, a few companies within the same sectors are operating more comfortably. Though they have experienced a decline in sales, it has not reached a level that threatens their viability.

Their HRM strategies have proven effective, as these companies employ a skilled workforce, offer above-market salaries, and have built competent sales and financial teams. Their operations are guided by professional standards rather than individual whims, and their HR teams monitor companies undergoing layoffs to attract skilled employees. They anticipate that struggling competitors will continue to lose market share, which could further impact their sales.

Terminations can affect morale, productivity and trust, particularly if they are perceived as unjust or poorly communicated. Remaining employees may feel uncertain or demotivated. HRM can mitigate these effects by communicating the reasons for layoffs transparently and offering support and clarity about job security to those retained. HR teams should also provide counselling or career development sessions to boost morale and reinforce commitment to the remaining employees.

Human resource management is a multifaceted discipline, extending far beyond hiring. HR professionals manage, develop and support a company’s workforce effectively. Beyond recruiting talent, HRM ensures that employees continuously develop their skills and adapt to the company’s evolving needs through training and development programmes. HR also sets clear goals, evaluates performance and fosters employee engagement. These departments create fair compensation structures and provide benefits to attract and retain top talent.

Another vital aspect of a competent HRM department is fostering a positive work environment and addressing grievances or disputes promptly. HRM also ensures compliance with labour laws and regulations. The department plays a central role in organisational development by implementing strategies that align the workforce with the company’s objectives, including culture-building and change management.

HRM is responsible for enforcing clear, principled policies on terminations. This includes maintaining transparent disciplinary procedures, documenting performance issues, and adhering to legal standards. Transparent processes not only protect the company but also reassure employees that decisions are made fairly. HRM promotes fair treatment across the organisation by establishing policies that prevent discrimination and harassment. They design systems for equitable pay, career advancement, and conflict resolution. A structured code of conduct helps maintain a respectful, productive workplace.

During financial difficulties, involving employees in discussions about cost-saving measures can foster a sense of unity and help prevent layoffs. Open discussions on company challenges, inviting suggestions for expense reduction, and considering voluntary options like temporary pay cuts or reduced hours can be collective solutions to avoid layoffs. HRM can offer opportunities for employees to make informed decisions, often increasing their commitment and resilience during challenging times.These inclusive approaches, when carefully managed, can strengthen trust, reduce turnover and help employees feel valued, even in difficult times.