The current economy is presenting challenges not only for business owners, but especially for human resources managers who are dealing with leaner operating budgets, increasing insurance and other benefit costs, and rapidly increasing employee stress and insecurity.

As the Chicago Tribune reports: “Weak economy adds to stresses in the workplace”

“It’s an understatement to say that the recession is causing havoc in the workplace.

“Workers are feeling uneasy and anxious about their futures, while employers are trying to manage businesses amid a worsening economy. The wave of job cuts is a stark consequence and a reminder of how bad the labor market and working environment have become.

“Research provides a snapshot of how employers plan to deal with a slumping economy and how layoffs are affecting workers.

“One study of worker attitudes and moods during the post-Sept. 11 recession gives a pretty clear indication of what to expect after these most recent job cuts. Employees who survived the post-Sept. 11 layoffs reported higher worker insecurity, more stress, less teamwork, heavier workloads and a feeling that they are less valued, according to Sirota Survey Intelligence, a New York firm that specializes in attitude research.

“Put another way: It is likely becoming more difficult for many workers to go into the office each morning.

The article goes on to report:

“Eileen Levitt, president of the HR Team in Columbia, Md., a human resources consulting firm, said employers, especially small ones, are in a tough spot. “The cost of business is going up dramatically, and you have less business to support it,” she said, noting that her clients have seen a 20 percent to 30 percent increase in health-care premiums, among other costs.

“According to a Society for Human Resource Management survey of nearly 450 HR officials, 55 percent said hiring freezes are also likely if the economy becomes worse. Other likely actions included cutting bonuses (50 percent), freezing salary increases (45 percent) and job cuts (39 percent).”

How is your human resources infrastructure? Are you successfully managing these rapidly increasing challenges in operating costs and employee morale? If the answer is no, consider an outside assessment. For example, CPS offers a proprietary human resource audit – HRdna®. This customized and objective Internet-based survey is designed to measure key indicators of employee commitment, likelihood of employee retention, and specific business, leadership and HR improvement opportunities.

Whatever you decide to do, don’t let your human resources functions get away from you. These operations are too costly, sensitive and mission critical to your business to be overlooked or poorly managed – especially in uncertain times.

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