Wed 23 May 2012 | 
Retaining staff during difficult times
The Prime Minister has been urging businesses to retain staff as the global financial crisis and economic downturn continues to bite. Should small business retain staff and how can they do this if sales and profits are falling?
The answer to the first question is a resounding YES. Of course small businesses would want to retain their staff who have loyally served the business during the good times. Shedding staff can be a quick fix when business goes quiet but it may not be the best strategy in the long term. Cost out (in money and time) what you have invested in training and developing those staff members. Then think about the costs of recruiting and training new staff that you will put on when business picks up again.
A shift in mind-set may be required. Think about your staff as a tool who can help you to whether the economic downturn rather than just an expense item on the profit and loss statement. Your staff may just have the ideas required to ensure your business survives or thrives. If the economic downturn is a shared problem, staff can use downtime to think of new products or services, to reduce costs, or to improve systems and productivity.
Your staff can take some of the load off you in finding solutions – now that is money well spent!
Staff retention during uncertain times
* Reducing staff may not be the smartest first response
* Openly communicate with staff about what is happening
* Focus on improving productivity and cutting other costs
* Encourage staff to find ways to beat the downturn
* Encourage holidays and consider new rostering arrangements
Have you had to shed staff? What have you and your staff done to avoid lay-offs?
The answer to the first question is a resounding YES. Of course small businesses would want to retain their staff who have loyally served the business during the good times. Shedding staff can be a quick fix when business goes quiet but it may not be the best strategy in the long term. Cost out (in money and time) what you have invested in training and developing those staff members. Then think about the costs of recruiting and training new staff that you will put on when business picks up again.
A shift in mind-set may be required. Think about your staff as a tool who can help you to whether the economic downturn rather than just an expense item on the profit and loss statement. Your staff may just have the ideas required to ensure your business survives or thrives. If the economic downturn is a shared problem, staff can use downtime to think of new products or services, to reduce costs, or to improve systems and productivity.
Your staff can take some of the load off you in finding solutions – now that is money well spent!
Staff retention during uncertain times
* Reducing staff may not be the smartest first response
* Openly communicate with staff about what is happening
* Focus on improving productivity and cutting other costs
* Encourage staff to find ways to beat the downturn
* Encourage holidays and consider new rostering arrangements
Have you had to shed staff? What have you and your staff done to avoid lay-offs?
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The Prime Minister has been urging businesses to retain staff as the global financial crisis and economic downturn continues to bite. Should small business retain staff and how can they do this if sales and profits are falling?
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