Between the skyrocketing cost of getting by and uncertainty about the near future, employees in today’s work environment have it rough. The Federal Reserve is still hiking interest rates to curb inflation, just when things started to look up following the COVID-19 pandemic. Recessions occur when economic activity falls, and this often has significant impacts on households and organizations.
While you can’t control the recession or even predict when it will end, you can control your own business. Your team is a valuable component of your business. Obtaining their loyalty and support is one of the best ways to recession-proof your company. There are many ways your team can help your business when a recession hits, and below are a few:
They Can Help Reduce Unnecessary Expenditure
No one understands the situation on the ground better than your team does, and engaging them can help reduce expenditure without compromising the quality of your products. The earlier you start cutting unnecessary expenses, the sooner you can save to help your organization get through a long recession. Engage your department leaders in this step to ensure that every employee saves as much resources, utilities, and time as possible.
Your staff can also suggest more efficient technologies such as Acrobat, which has multiple functions within one tool and can help cut costs in multiple subscriptions. They can also help cut down on utilities by working remotely.
Employees Can Help Generate and Sustain Crucial Business Relationships
The driving force of any business is the quality of its relationships with its clients. Relationships with other stakeholders like suppliers and creditors are also valuable. Whether you’re operating a B2B or B2C business, you need to keep your relationships alive to remain relevant.
Due to the recession, loyal customers may lower their spending but as the economy improves, most will return. Your employees can help you have more of these by providing professional services. Your staff can help your business survive by preparing high-quality products, providing excellent technical support, and communicating effectively with each client.
They can also reach out to existing clients, reminding them of your existence and what you have to offer. They can use their communication and interpersonal skills to handle things with suppliers and creditors when you are not available.
Their Creativity Can Give Rise to New Opportunities
Recessions tend to drive some products and services out of the market as customers strive to save money. Multiple opinions and suggestions from employees from different walks of life can be incredibly valuable and insightful. Collaborating with your employees can help you diversify accordingly to improve sales and remain relevant. They will help you diversify or expand your portfolio without necessarily raising expenditures. You may also get information about your competitors’ best marketing strategies that you can employ to boost sales.
They Will Offer Their Problem-Solving Abilities
Your business is probably having about a dozen problems, and you may be so overwhelmed by the need to stay afloat that you may not have all the answers. Your employees can pool their problem-solving abilities and creative skills to help solve the challenges you are experiencing. With their technical expertise, they may also suggest potential problems and their solutions before they occur, helping you remain proactive in an unpredictable environment.
Fluctuation in your workforce is one thing you can’t afford right now. The time and resources required to seek, hire, orient and train new employees can disrupt your budget. Losing top talent to a competitor can also be detrimental.
Employees who choose to stay can help you maintain business as usual, despite the recession. With a dedicated, trusted team, you’ll be able to meet deadlines, attract new customers, and meet your goals.
A Supportive Culture
In such uncertain times, it becomes challenging for employees to be productive. Financial issues, such as losing a home, can significantly affect your staff. The workplace can also become chaotic as rumors circulate, some employees leave, or workflows get disrupted.
A positive culture is critical during a recession, making employees’ impact on each other crucial. By offering each other emotional support, they can stem false rumors, encourage each other to stay, and foster a friendly work environment. Older employees can be valuable mentors and advisors to younger employees who are probably more overwhelmed or distressed by the economic circumstances. Your employees can also help each other weather any changes your business has to incorporate to survive.
Advocating for Your Brand
Loyal employees with a connection to their companies can help their business by being positive agents outside the workplace. They can recommend your services to their networks, thus increasing revenues and bringing top talent to your organization, which will improve your competitiveness.
How Do You Get Your Staff to Support Your Business?
You likely agree that getting employees to support your business through a recession is no easy feat. Most employees will gladly leave at the sign of trouble or a better remuneration offer, so how do you get them to stay and remain productive?
Start by keeping communication lines open. Your employees will be worried about the safety of their jobs, how the organizational structure might change in case of a merger, or the stability of your firm. Communication is critical in turning your employees into allies for getting through the recession.
To avoid premature turnover and loss of trust, be transparent with every step you take to get your business through the recession. You also need managers who can be leaders and motivators to your staff. Finally, avoid overworking your staff, especially after conducting a layoff. Overwhelmed employees will quickly develop a negative attitude towards their job, which will reduce productivity.
Trust Your Employees to Recession-Proof Your Business
When a recession hits, most business owners consider their employees a major expense that needs reduction. However, your staff can do a lot for your company, as you can see above. Engaging them during trying times will also help them feel valued and encouraged to stand by you through it.