The Global Financial Crisis (GFC) led to the collapse of many major financial institutions in the US and Europe in 2007 and 2008. This was mainly caused by subprime lending , which more simply These terms mean that many of these financial institutions were unable to repay their creditors and depositors due to the reduction in value of the assets they held. Without going into the details of how the financial crisis occurred due to other factors such as subprime mortgages and real estate price appreciation, we can say that during this period there was a massive loss of confidence in the financial system globally, which not only affected the fundamentals of a country's economy, but also damaged the social and political structures of many of those countries affected directly or indirectly (Zagelmeyer and Gollan, 2012). This has led to increased demand, increased unemployment, more debt, and many other social and economic concerns for businesses and governments. The relationship of this crisis to human resource management (HRM) is relevant because it ultimately influences how people are managed within organizations. As mentioned by many authors such as Gunnigle et al (2013); Edwards & Rees (2011), the key functions of the human resources (HR) manager role are employee management, such as recruitment, selection, compensation and benefits, industrial relations and the HR function. The approach they take, the policies they implement and the practices they employ are what contribute to the employment and unemployment data. There are a number of factors that influence how the human resources department acts, whether they change or implement new practices, following the global financial crisis. Another issue at hand is that, having... half of paper......g employees and keeping them engaged in work can be tough work for organizations and the HR function. Retaining talented people who are familiar with their culture and working practices, rather than firing them and hiring them later in the future, also benefits organizations. As an example we can look at the measures taken by Aer Lingus, who implemented a “leave and return” policy, whereby they gave employees a severance lump sum and forced them to return on a reduced salary (Gunnigle et al, 2013). This policy is very important for an organization because instead of adopting a short-term approach of cutting jobs, losing talent and recruiting them again in the future, companies should keep the long-term strategy in mind and look for ways to retain talents within your organization and try to adapt them to different roles, keeping them motivated enough.