Bearish financial news is appearing in droves these days as the mainstream media focusses on gloomy market outlooks. The bears are beginning to growl especially in the wake of housing price declines and rising homes for sale inventories. At the same time, consumers who are the driving force of the economy, are maxed out on credit and are moving into repayment mode.
Should a recession be in the cards, as happens in capitalist economies, then it's time for your business to consider a possible economic downturn. Your company must survive the storms of the economic hurricane, and part of that survival involves your staff. A recessionary environment usually coincides with massive layoffs, downsizing, and higher levels of unemployment. The normal and expected response is to lay off employees. That is the usual technique for recession survival, but it's not the best one.
For your business, a more creative approach than simply cutting staff, will help your company weather a recession. Indeed, your organization may even thrive during an economic downturn, and emerge stronger than ever before in your company history. At the same time, keeping your staff employed sets you apart as an entrepreneur who cares about people. Not only your workers will notice that aspect, but so will your customers. As an organization that values staff and clientele, your public image will receive a powerful boost.
The question then becomes one of how to achieve this wonderful status, of a caring company, in the face of potential financial disaster. As a contrarian, you will have the field mostly to yourself so the competition to be a people oriented business is lowered dramatically. All by itself, maintaining and even increasing staffing levels will set you apart from the run of the mill organization. Be sure to contact the media with your story of enhanced personnel management. The free publicity will definitely work in your favour.
If you were careful with your hiring practices in the past, you already have a strong employee pool in the company. By selecting quality people, and by providing solid training and opportunity, you have already laid the groundwork for harder times. Your people will be the key to success, and not a drain on your resources. In fact, an entire attitude change on everyone's part is in order. Instead of seeing the bad times, think in terms of the opportunities presented by lowered competition.
You often hear the old cliche from companies who say "their strength is in their people", or something along similar lines. Tough times are where the rubber really meets the road for that kind of cliche. Here is where you can walk the talk.
Go to your staff and announce there will be no layoffs during the recession. Be sure to prevent any sense of complancency, however, by emphasising that non-performers will not be given a free ride. They will get the hint. Point out that further training opportunities will be made available for staff members, and that positive results will be rewarded.
Now may be the ideal time to add some powerful incentive programs to the compensation package. Encourage staff to go beyond their current levels of performance and provide tangible rewards for strong achievement. At the same time, provide incentives for money saving ideas. Expenditure reductions, that do no harm to business efficiency or customer service, are powerful recession fighters. Your staff will know many ways to conserve cash, and their contribution to the bottom line should be acknowledged.
Create an entirely new and powerful customer service program. Utilize the crisis to develop a renewed emphasis on improving service to the clientele. Since it costs nothing to smile and be helpful and courteous, especially when so many long faces are everywhere, your organization will stand out from the gloomy crowd. As always, create fun incentives for the entire company to participate. Emphasise that everyone in the organization is part of the company image, and to share in the renewed customer service committment.
With other companies conducting layoffs, some very talented people will become available. Since your goal is to not only survive the recession, but to emerge even stronger than ever, a few strategic hirings might be in order. Think of the positive mood you can create as you add staff, instead of removing people.
Instead of everyone keeping their heads down, covering their backs, and avoiding mistakes, you will enhance employee morale. Happy people are productive people. Staffers frightened that their next stop is the unemployment line are much less likely to be in top form. Add staff as required, while maintaining your own quality people.
During an economic downturn, most companies reduce their employment levels. Go against the conventional wisdom, and emerge from the recession as an industry leader. Being a driving force in your industry is so much more exciting and profitable than being a me too follower.
Your positive personnel management practices will put your company on top.
