Which action should HR take in response to this metric?

A review of the organization’s cash flow statement shows the cash outflow has increased over the previous year.

Which action should HR take in response to this metric?
A . Reduce recruiting and selection levels immediately
B . Postpone any resource-intensive projects.
C . Prepare for a downsizing exercise.
D . Purchase resources for strategic onboarding.

View Answer

Answer: B

Explanation:

Cash outflow describes any money leaving a business. The opposite of cash outflow is cash inflow, which refers to the money coming into a business.

A declining cash flow indicates that resources are scarce, and are not readily available to fund additional projects or initiatives.

This may not necessarily require an immediate decrease in recruitment, as this can create more problems by causing revenue to plummet.