Crucial Rs of Recession
Crucial R’s of Recession: Realignment, Recruitment, Retention and Redundancy - Options
I don’t think anyone is in any doubt that we are in the middle of a recession. And generally with a downturn comes fear and a sense of needing to cut costs, reduce overheads etc.
But it is important to remember that people are your single biggest asset and nothing should be more important than ensuring you get the people aspect of your business (your people processes and people management) right! Here are we look at your options and consider some of the pros and cons of each element.
In our next Newsletter we’ll be giving you some more specific tips for dealing with these three most crucial aspects of people management to help you along the way.
Realignment
Sounds complicated – what does it mean?
Well quite literally it is to “shift, reposition, rearrange, change...” Unfortunately for most of us this downturn came quickly and as something of a shock. We had perhaps become complacent in the good times and our strategies were based around assumptions that no longer hold true. So it is time to review, revise and realign. The two most typical responses in crises, at least business crises, tend to be panic or become an ostrich. But panicking leads to rash decisions which are likely to be regretted in the long term. And burying your head in the sand like an ostrich just means that when you do come up for air it will probably be too late to save your business.
So what does realignment mean in this context. For the SME it is about carefully looking at each and every aspect of your business. What is working and what isn’t. Remember the rules of yesterday don’t apply so what was a great and highly sought after product or service a short while ago simply might not be workable now.
Look at where there is potential for growth or additional business and earmark the areas which are loss-leaders, can be outsourced or eliminated completely. It is time to build on your opportunities and cut your losses. Then look at your people. Can you redeploy those in loss-leading or superfluous areas of the business? Do they need re-skilling? Will you need to recruit, retain, and make redundant?