Survive the Downturn - Recognise The Value Of Employees

Extract from ICAEW report: 8 Ways To Survive The Downturn

Find out how communicating with your employees and thinking about their skills and abilities can help your business survive the downturn.

It’s always difficult when there’s bad news, but there is never a more important time to communicate openly, honestly and regularly with your staff.

How you behave during the difficult times will affect your reputation as a responsible employer and be vital in attracting and retaining quality staff in the future.


Plan ahead

Have you identified your ‘bad weather’ spokespeople, those who have credibility and can be relied upon to deliver vital information to your key staff?

Have you set up effective channels of communication to inform staff and stakeholders quickly when you need to?

During the recession you may be facing redundancies or restructuring to make savings, but:

Have you also identified the key individuals who will be essential for the long-term success of your business?

What steps do you have in place to retain and develop this talent?


Look for guidance and advice

It has been estimated that two fifths of directors today will be facing recessionary pressures for the first time in their careers. They may need support as they face increased pressures internally and externally.

Consider looking for mentors or advisers inside or outside your company who can provide guidance and advice based on previous experience.


Think about your staff and their skills

It’s also important to look at your management team, and ask whether they have the right skills to manage the new problems you are facing.

Some firms made the mistake of cutting back on training in the early 1990s and found themselves short of good, qualified staff when the economic upturn came. ICAEW research has shown that those organisations which continue to train in challenging times are most likely to be the winners over the longer term.

Businesses should also review their reward structures to ensure they are still relevant in the changed environment, particularly share option schemes and sales targets.

What alternatives do you have to keep your loyal staff? For example, can you offer sabbaticals or secondments; should you move to a four-day week or ask staff to accept a pay decrease to avoid multiple redundancies?

Source ICAEW - full report can be downloaded by clicking here.