Historically, recessions impact different industries differently. Some require immediate response while others can incorporate measures over time. Whatever the measure, they will affect morale and the ability to maintain a dedicated workforce. The following strategies are in no priority order with each having its own measure of payoff. Whatever the strategy, it is extremely important that the leadership team keep the workforce informed of the measure, timing and the reason behind it, such as reduced or delayed contracts, business in general and the desire to avoid a Reduction in Force (RIF). Timely communications will reduce rumors.
1. Review and obtain customer input regarding their projections, plans and their history for same.
2. If current or projected near turn cash flow is critical, immediately place a hold on scheduled pay raises and bonuses, hiring and offers, promotions, outside training, travel, and social events.
3. Enhance electronic conferencing.
4. Invite early retirements with or without added inducements.
5. Reduce and or eliminate vacancies.
6. Consolidate functions and facilities.
7. Increase remote working positions and experiment with adding more functions. Invite worker input. This would be a morale booster as it would also reduce individual’s transportation costs.
8. Since many workers may have a family member with better benefits, invite individuals to be reclassified as furloughed or part-time workers with reduced benefits and the understanding of returning to full time work at a future date identified by management. Local and state laws provide more in-depth guidance.
9. Review lessons learned from previous downturns for what worked and what didn’t.
10.Do not “BS” the workforce!