Organizational and Financial Correlates of a “Contrarian” Human Resource Investment Strategy

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Abstract
Correlates of the “contrarian” investment strategy of countercyclical hiring were investigated through the use of regression models that explain variance in four measures of such hiring at the individual company level. Variables positively related to countercyclical hiring include human resource planning efforts focused on avoiding personnel shortages, maintaining a regular age distribution among managers, employee development and career planning, company financial performance, and the quality of applicants hired during downturns. As expected, cost considerations are negatively related to the extent of countercyclical hiring, as is maintaining a regular age distribution among professionals. An unexpected finding is that percentage changes in the employment of managers and professionals are inversely correlated.