Recession Planning for Business

News about the United States recession has hit the average Americans, and fears begin to rise about rising prices and higher costs of debt payments.  This is why the company should contribute, even in their own little way, to make the impact of recession less of a burden for employees.

Study your company’s strategic plan

Take a look on your company’s strategic framework, including your mission and vision statements, as well as your company values and even annual goals.  Determine if this framework is sufficiently articulated to help your company make it through a serious economic downturn. 

If so, you need to communicate this well to your employees so they would not be afraid and trust your company’s leadership all while hoping for a positive direction in the days ahead.

Be aware of the company’s and your industry’s challenges

If your company offers an essential product such as canned food or products that could save time and money even in a down economy, you are probably on a good standing. 

If this is not immediately determinable, think of ways of repositioning your product or service so that customers begin to see it that way.  An economic downturn is also a test of your customer’s loyalty towards your brand.

Create a contingency plan

Think of potential scenarios that would most likely happen if the recession hits your company, and then solve them by devising of ways to lessen the impact of these scenarios.

Communicate with your employees

Assure to them that your company’s management team is doing their best in planning forward about possible economic downturns, as well as discussing possible less-than-positive contingencies.  It is critical that they know that their jobs would be retained, as well as knowing that a plan exists.

Avoid hiring more employees

You may need to consider your current employees before hiring new workers this year.  It is better to decide not to hire additional employees than to risk having to downsize them later on. 

However, if downsizing becomes necessary, deal with it as humanely as possible with both the employees you let go as well as those who remain.  Communicate throughout the whole process, as well as appear rational and fair in your process.

 
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