By now, most economists and pundits agree that we are in a recession.
What educated experts and laymen alike find it most difficult to agree on are the answers to troubling questions like “How deep will the recession go?” and “How long will it last?”
Recovery estimates vary wildly, from the grimly depressing to the optimistic. It seems that the only thing we can know for sure is that no one really knows.
With the future so uncertain, business publications have dedicated themselves to promoting the philosophy that recessions create opportunity…at least for those with the courage to succeed. While this may seem like a tired cheerleading attempt to some, the ideology is sound. Even during the Great Depression, companies like Kellogg’s, Proctor & Gamble, and Chevrolet did more than survive, they excelled. The people who ran their winning course did so with a combination of courage and inventiveness. In other words, they used moxie.
So where do you start? What kind of changes will guarantee the success of your company? Here are seven HR strategies that are easy to implement and can make a big difference.
1.) Lead with Confidence – During these troubled financial times, it’s natural to want to take a backseat until the way forward becomes clear. However, companies need strong leadership to thrive, now more than ever. Providing direction inspires confidence in your employees and helps build a loyal workforce. Companies that lead effectively now will retain loyal staff to meet their present and future challenges.
2.) Communicate Effectively – Making sure people have the information they need is the foundation of any good relationship. Being honest and open with employees is especially important at a time when they may be dealing with serious concerns outside of the office. Present concerns may include a laid off spouse, the possibility of your own being laid off, fears of not being able to pay the bills, etc. As their leader, you have a responsibility to reduce the stress they may feel by openly communicating the perspectives of your company’s staff members. Don’t forget to communicate often because your employees’ financial position could be changing rapidly right now.
3.) Recruit with determination – The anticipated global shortage of workers has not disappeared: it has simply been postponed. The reason? Baby boomers choose to work a little harder because their retirement savings have run flat. Once the market fully recovers, you should expect a mass exodus as boomers leave the workforce. Companies that make severe headcount cuts and don’t keep their HR staff connected to potential hires will be hit with severe staffing shortages. Smart companies have a great opportunity right now to hire talented people who have been downsized by other organizations.
4.) Cut back strategically: Consider outsourcing what functions you can to help cut costs, but don’t forget to take good care of the employees you might eliminate. Generous packages build goodwill and increase the loyalty of those who stay. In addition, departing employees may be more willing to return to work when times are better and your company faces the global staffing shortage that the recession postponed. Generous packages may seem out of the question in tough times, but you should seriously consider offering the most you can. Your company will be able to recruit better people in the future if your reputation is bolstered by the way you treated people during the 2009 recession.
5.) Be strategic in delivering PD: Use your slower times to improve the skills, technical and personal, of your employees. This will help keep staff members engaged and equip them to deliver the exceptional service that can sustain your business now and contribute to its future prosperity (see 6).
6.) Take good care of your clients – Remember the days of attending networking events to stay connected, secretly hoping you wouldn’t get too many new engagements because you didn’t know where you’d find the staff, time, or energy to provide. the service? It all seems like a distant memory, but it was probably less than 12 months ago.
What most business owners wouldn’t do if they could have that problem again!
Instead, you’re watching the business decline and wondering how to get it back. Part of the answer lies in training your people to be customer service specialists. Throw back to the days when you only hired people who would go the extra mile to give their customers exceptional experiences with your company. Renew your company’s customer focus now!
7.) Avoid layoffs with creative strategies: Before cutting staff, consider alternative ways to save money and retain jobs. An unpaid day off, job sharing arrangements, job sharing with other companies, pay cuts, government assistance programs – these are just a few of the many possibilities that can work for you and your employees. Be creative!
Whether you consider yourself gutsy or not, the current recession calls for courageous and inventive thinking. Implementing ideas like the seven above can not only help your business weather this global storm, but also position it to sail under full sail when the storm has passed.