HR On The Chopping Block

Strategic.  Not if you ask Home Depot.  An article recently published on Workforce.com stated that Home Depot is cutting its HR staff by 50%.  That's right--50%.  They have decided that they will create a call center to answer employee and manager questions and go with a regional HR function and eliminate the HR support from the stores.

Why?

Housing market.  No one is renovating and sales are slow.

What signal does this send to the profession?  First, it demonstrates that more people in the role don't always lead to better business results.  Second, this seems to demonstrate the regardless of how important HR is if times are tough it is often one of the first departments to get slashed.  Finally, I wonder if HR didn't miss an amazing opportunity to drive revenue by being in the stores and learning first hand what is going on or did they squander the opportunity and hide in an office?

As Home Depot starts to implement their regional structure, I'm sure that the internal staff within those stores will be fighting for those positions.  It should prove to be on the competitive side given the size of the RIF.   

I'm guessing that each of those managers is currently thinking "why are we being RIF'd?  I'm so busy!" 

The reality is that less will get done in the stores and employees will eventually get used to "calling the number" when they need something.  Given the traditional ratio of 1:100 for HR those regional HR managers are going to be really busy!

I'd love to know what you  think!  Email me your comments at jhargis@talentinsightgroup.com

Comments

[Scott Williamson]

I think Home Depot is now actually saying what most organizations think. 'HR isn't that important.' From outsourcing to simply going to a call center model, it seems that most organizations would rather HR just go away...until they need them.

[Leviathan]

Could it be that management of Home Depot are just realizing that the craft you deal in is a bunch of foolishness and a waste of money and time when its taken to the extremes that you espouse. Maybe you should take an assessment and think on it...