Is Your Organization Ready for Economic Recovery?

 By George F. Gordon

Have you ever been stuck in traffic and unable to see ahead to know what the hold-up is?  Yes, you answer; then that may be what you’re feeling now with the current “stopped” economy.  Speculation on why the economy isn’t moving ranges from uncertainty on the international front, to consumer fears on the domestic front. 

But regardless of the current sluggishness, history shows that a recovery will come, and perhaps soon and sudden!  Will your organization be ready? 

Readiness to respond to the economic recovery may seem like a low priority for you, given the many day-to-day responsibilities you face; however, consider some of the issues below and rate your organization as to its readiness to respond to sudden increase in business. 

 There are several critical issues to consider in guaranteeing that your business is ready for the economic recovery, and there are several solutions.  Below are some of the issues to consider and a few solutions. 

Issue One – Salary and Benefits:  Has your organization remained competitive with regard to salary and benefits?  In an effort to save on workforce costs, some organizations have implemented salary cuts, small or no salary increases, and reductions in benefits.  With the current economic uncertainty, employees are staying put, but if your compensation package is no longer competitive, an economic up-turn will compel “the best and the brightest” among your employees to move on, and will reduce your company’s ability to respond to increased business opportunities because of a loss of talent. 

Issue Two – Employee Morale:  In most downturns, employees are glad to hold onto their jobs, but that may also indicate that many people are hiding their unhappiness over issues within the company.  A downturn in employee morale during a slow economy may mean a lot of surprises when the recovery finally arrives.  Good people, upon whom the organization relies, may be masking a great deal of unhappiness and may be the first out the door when they feel it is safe to make a move. 

Issue Three – Training and Development:  With receivables down, many organizations are tempted to cut training and development, or eliminate career opportunities within the company.  In slow economic times, Japanese firms pride themselves on using the additional time available to employees to increase training and development, rather than reduce it.  American firms are notorious for not staying current with changes in technology and personnel management skills during slow times, and when the economic recovery does come, many companies find themselves at a competitive disadvantage because they have fallen behind in technology and people skills. 

There are Solutions: Companies can maintain, and even gain, market share during slow times, and at the all-important time at the start of the economic recovery.  Here are some ways you can be ready.

Conduct an HR Audit:  To identify and address problems and weaknesses, conduct a review of current HR policies, procedures, compensation strategy, career management and career development for employees, workforce readiness, training/development and other critical issues.  An HR Audit allows you to stand back and take a fresh look at the functions in HR, and to benchmark against other companies and industries in order to judge your company’s position.  Critical decisions can be addressed in advance of need, and when the recovery comes, HR is ready.

Conduct an Employee Survey:  If you don’t ask you won’t know where employees are on issues, and because of the slow economy, critical issues may be missed or hidden.  A well-developed and well-administered employee survey will not set up unrealistic expectations by employees -  “if-they-ask-then-they’ll-fix-it” - but will bring employees more into the organization as partners by saying: “We know there are a lot of uncertainties, but we care what you think and we’re interested in knowing your concerns.”  Follow up studies of employee satisfaction surveys indicate that conducting an employee survey in slow economic times can provide a morale boost.  

Evaluate Your Recruitment Practices:  A review of recruitment practices and a review of your current workforce, including job descriptions, along with a review of current skill levels by identifying gaps in training and development, can help you to decide if you are prepared for an up-turn in business.  In evaluating alternatives to your current recruitment practices, you may want to consider outsourcing your recruitment to a firm that can provide temporary and contract employees, as well as recruit for your immediate needs in a quick economic recovery.  Competition for qualified workers still exists even in these slow times, and the need for qualified workers will increase dramatically when the economy heats up.  

Stuck in Traffic?  However, here we sit waiting for that traffic to start moving.  But you don’t want to be the one in your company who “turned off the car during the slow traffic” and now can’t get it moving when the economic road opens up, and other companies are passing you by.  You want to be able to show your organization that you’ve got a “full tank of HR fuel” with enough power and agility to drive the company forward, moving from idle to top speed in no time flat, leaving your competitors in the dust!