It seems that the press are determined to spread doom and gloom about the economy and is intent on hammering it into us that we are headed for recession. This is all really annoying as the press talk seems to be turning into a self fulfilling prophesy.
“Blood Bath Britain” warned the title of the email distributed on Thursday afternoon by MoneyWeek warning of the serious consequences faced by all in the face of impending economic doom. Reading the email reveals all their predicted scenarios – my favourite being “Disaster 5 – Shares, Investment and Cash all lose value destroying wealth and crushing retirement dreams”.
Further reading reveals that this is nothing more than another company trying to exploit the negativity in the economy – and perhaps even taking it a step to far – in order to promote the financial services they offer.
However times are indeed tougher than they have been in previous years, and to ensure you get through here are a few HR related tips:
Reduce the costs of absenteeism
Ensure that return-to-work interviews are properly followed. Make sure that absence and sickness procedures are in place, implemented and enforced. Sickness costs need to be kept in check.
Quality recruitment
Even in a downturn in the economy, recruitment must take place. Make sure it is effective. Do not waste advertising costs - use the company web site to place most positions - rely more upon the local network of Job Centres. Only use costly recruitment processes when the essential needs of the business warrant it.
Recruit to retain
Recruitment is expensive so make sure that the chosen candidate is the right one; take time and care to recruit and then make sure you retain that person
A thorough induction
Make sure that the new employee is given a solid grounding in the organisation; tighten up induction procedures.
Performance and appraisal
In a hardening economic outlook it is essential the greatest but most expensive asset of a company - its staff - are working to optimum efficiency. Make sure that appraisal systems are being used effectively to maximise the performance of staff. Make sure that the appraisals and reviews have a positive approach - quality staff morale is crucial in hard times.
Review training needs
Ensure that the business needs are properly served by the training programme. Review the areas of training and ensure that they are still relevant to the current needs of the business. Do the training providers offer good value for money? Are there any more cost effective but still efficient training options? Review all costs and only use the most effective.
Encourage a review of travel
Travel expenses are a major source of cost and potential overspend. Encourage a review across the business. Is that trip necessary at that time, can it be combined with another business trip. Are there better ways to travel? Can the work be done off site, through the telephone, email, video conferencing route?
Prepare for the worst
Ensure that you have a strategy for keeping staff costs down, prepare worst case scenarios for pay costs and staff costs
Have strategies available for helping the organisation through the most difficult periods. Look at lay off and short-time working provisions. Revise and review redundancy
Other Resources:
Credit Crunch website defines "credit crunch" as something that is also known as a "liquidity crisis" or a "credit squeeze", the banks won't or can't lend. Investors can't or won't buy debts. Suddenly it's very difficult to borrow money. There is a lack of easy money. Consumers and businesses have less to spend. There could be serious ramifications for an economy.
Source SME web
6 comments:
Good list, Scott. And I'm glad to see the Training is on there.
By coincidence, I just blogged about this:
http://learningvoyager.blogspot.com/2008/10/think-training-is-expensive.html
Terry
I've lived through a far worse downturn and I will say two things"
a) Just declutter. This is a brilliant time to clarify goals and get rid of processes that are time wasting, debilitating, soul destroying and there for all the wrong reasons.
b) Focus on what is good and true, better and possible and that usually begins with employee and customer relationships. Employees don't expect us to pull rabbits out of hats. But they do expect loyalty, honesty and integrity. They really appreciate it when you lay out exactly what you can commit to and what will be up in the air. And they will pick up the slack in all sorts of ways which take the decluttering process forward.
Do both and you business will be far far healthier than when you started.
I am happy to talk to anyone who has got the jitters. I've been through this and I remember the initial confusion and the process of settling down to running our businesses elegantly and compassionately.
Well said Scott. I might add, lead by example. It doesn't take very long for reports of one small act of extravagance or waste by HR to spread throughout the company.
Thanks Scott for sharing your valuable thoughts. I think this will really help SME's in cost cutting.
Scott, in general I agree with your list but I would like to challenge a couple of things.
1) I've often seen absence and sickness procedures mis-used by companies to try and prevent absence. In truth they are merely corrective actions that happen after you've got an attendence problem. If you want to take preventive actions as well then they need to be linked to employee engagement. Go figure out why employees are going sick/awol. Don't just use a big stick to beat the problem out of them. Fear of formal disciplinary proceedings is not a good long term incentive to improve productivity or customer service.
2) Most performance and appraisal processes don't seem to have any direct impact on performance or offer sensible feedback. They are bureacratic nightmares dreamt up by HR Departments with too much time on their hands and a need to justify "scientifically calculated" pay awards. Apraisers and appraisees both seem to groan inwardly when the time approaches, a bit like a visit to the dentist when you are not sure whether something needs treating or not. If someone does something brilliantly well or terribly badly then the feedback should be at the right time and in the right place, not next July.
OK, I'll climb down off my high horse now. Let's just go for applied common sense and treat people as human beings!
Shaun
Almost every media & press is trying to exploit the negativity in the economy. I read a article the other day titled "our economy is going to hell, and we are going with it" In a tiny magazine that was stuck in my mail.
The above comment written by jo is a great one. especially (A.) i completely agree with the fact that "This is a brilliant time to clarify goals and get rid of processes that are time wasting, debilitating, soul destroying and there for all the wrong reasons."
Wonderful post!
John
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