Retaining staff during difficult times

17 August 2009 | 0:00 - By Shivani Gupta

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 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?

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Comments (5)

12 May 2011 17:21 AEST

bar chairs

From: Abel Goldfine

Abel Goldfine

Walter speaks to our humanity-our basic goodness is http://www.mingjiangnan.com/Bar-Chairs/Bar-Chairs/challenged when we all need to survive, or protect our loved ones. I also love the way you wove the show in with the journey your mom's illness has taken you on. Dark, painful, bittersweet, and absurd. Perhaps the next journey will be an open road headed for the canyons and vistas of the southwest.

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31 Mar 2011 11:03 AEST

shain

From: noth melbourne

goverment fails to get it rite AGAIN

how is that 11 million nsw has been paid out to abused ward of the state and only 3 million in Victoria yet i am won of the states abused used a salted and even sexually harassed and now even a bigger kick in the gutt none of them listen i say whats the bloody hold up my emails fall on def ears or worse still selective ones common the Australian GOVERNMENT for FLUCK SAKES put you monies $$$$$$ where you freakin MOUTH IS stop giving us lip service two years waiting shain

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29 Aug 2010 6:35 AEST

olmedic

From: Indiana

Cutting Cost

One of the smartest comments I read was the comment that employees may be able to help you cut costs. Many employees have ideas to save their employers money but never bring it to the employers attention. I worked in a college admissions office and saved them hundreds of dollars a year simply by chaining the ink pens to the clipboards that prospective students used to fill out applications.

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03 Mar 2010 18:57 AEST

Anjoliwax

From: Australia

It work!

I agree with your with your post. It is very difficult retaining staff during uncertain times.

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02 Mar 2010 8:02 AEST

Online Nursing Degree

From: http:

Staff for no salary

The plan is good but the point or a flaw here is that will the staff will agree to work for less or no salary? many of the staff didn't get their salaries for about 2 to 3 months, will staff compromise to work work additional no salary?

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About this Blog

Risking It All presenter and business expert Shivani Gupta has a passion to see people grow their businesses. Shivani brings her vast experience and practical business sense to help out the entrepreneurs in the television show and the SBS online audience in her business blog.

Shivani Gupta is a business dynamo with heart, vision, values and passion. She is a former corporate executive who “risked it all” herself to become an author as well as establish her own successful business coaching and speaking business, Passion@People. Shivani is well qualified for the role of helping our four start-up businesses, and your business too. Shivani has worked with a range of companies from sole traders to six of Australia’s top ten companies. She has won awards that include ‘Telstra Young Business Woman of the Year’. She was born in India and grew up in Australia. For more information about Shivani visit www.shivani.com.au

 
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