develop talent retention strategies

During economic downturns, it’s easy to think of reducing staff. However, as we saw above with Schiphol, that can lead to long-term struggles and lost revenue. Losing one or more key employees or critical skills can quickly derail recovery attempts. And you might find that rehiring individuals to replace those you lost may cost more than you saved. Finding ways to retain top talent is essential, as is keeping loyal support staff.

Periods of low market demand provide opportunities for training and development. This strategy lets you enable employees to step forward immediately once demand increases, endowed with new skills and knowledge, and further engage in the company. Your already completed workforce assessment and goals alignment can provide assistance in where to focus. For example, to ensure you’re training and developing the right skills and the right employees:

use your workforce analysis to determine which employees have the greatest potential within your organisation.
consult the short- and long-term business objectives to identify future HR needs.
review skills inventory to find shortages.

adopt flexible work arrangements

An agile workforce can save you money in operating costs while improving employee morale. Explore ways to incorporate more flexibility in the workplace. Because not every position is conducive to remote work, find other ways to offer employees enhanced flexibility.

Consider part- or flex-time scheduling, job sharing, a four-day work week or hybrid work models to incentivize employees without increasing salaries. Flexible work arrangements can also reduce operating costs, such as cleaning, utilities, security and office equipment.

Job sharing and part-time work increase employee engagement and loyalty, as workers can arrange their personal lives (i.e., children, elderly parents, doctor’s appointments) thanks to more flexible schedules. The company benefits by having two experienced employees equally trained for the same role. You can even schedule overlap should market demand suddenly return to normal. Some job sharers may be willing to forgo benefits to enjoy the improved flexibility.

Regardless of how you choose to restructure your workforce environment, the one essential component is constant communication. Remote workers need to feel just as plugged in as in-house staff. They remain an integral part of the team and should be kept aware of challenges, economic and otherwise. In addition, you must provide equal opportunity for remote workers to participate in training and development and apply for promotions.

leverage technology for efficiency

McKinsey & Company, through its work with manufacturing companies, has found that implementing digital and analytical tools helped reduce costs by 5%, much greater than the 2% attributed to traditional methods, like employee cutbacks. Resilient companies have discovered that technology, when used correctly, can greatly improve efficiency.

Employees freed from repetitive, manual tasks can be reassigned to other roles, ones that provide more scope for initiative and engagement. Technology savings can range from reduced errors to increased productivity. Using machines for repetitive or strenuous activities can prevent worker injury and time lost. Video conferencing and shared worksites help ensure collaboration between remote and on-site workers.

Before investing in new technology, calculate net savings, factoring in the initial outlay, training costs and update or renewal requirements with overall productivity gains.

a volatile economy demands strategic HR planning

When it comes to economic uncertainty, you need a strategy that looks beyond the immediate. A reactive style of management can leave you trailing behind your competitors. Prepare for market swings, down and up, by creating a plan that covers each scenario.

Making information-based decisions requires data on your employees, their skills and your company’s short- and long-term objectives. Armed with a plan and backed by authentic data, you can create an agile workforce that adapts as needed, eliminating the need for layoffs.

Your business relies on its people to succeed. As an HR professional, you can strengthen your organisation by improving people management. An effective strategic workforce plan is vital to long-term success and short-term survival.

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