22 September 2009
As you are reading this article, there are already signs in Australia and other economies throughout the world that the worst of the economic crisis may be over. This is good news for many businesses who had to endure a fairly rough few months and had to face challenges not experienced in the last 40 years. One of the main challenges facing businesses was cutting head count to reduce costs however, focusing on employee retention at a time when companies are experiencing mass layoffs may seem like an oxymoron.
In the aftermath of the Dot Com crash, countless employers slashed costs - starting with head count in an effort to ride the storm. And it worked… for the duration of the crash. But as soon as the financial climate began to hot up, these leaner companies didn’t have the capacity to grow with the economy and capitalise on new opportunities. In fact, they were left behind by the businesses who had carried the full financial burden of keeping their employees through the tough times. It became very clear that when business needed quick action the companies who had the infrastructure to take advantage really flourished while most companies who had reduced head count to gain short term benefits struggled and subsequently lost many business opportunities.
The lesson learnt from the Dot Com crash was that while it is important for companies to look at their costs and manage head count, it is also equally important to not lose your quality staff and have strategies to retain and keep them motivated. Achieving a flexible, motivated workforce which can adapt to a changing market is essential for a successful business.
Here are five tips to maximise the flexibility and dynamism of your workforce.
• Coordinate from the centre
If organisations can retain existing staff, they provide the continuity and skills base to successfully grow the business. For example, appointing a resourcing manager, who can work closely with regional teams can help ensure that a company is able to quickly redeploy employees from one area of the business to another, rather than laying staff off from one area and taking them on elsewhere.
• Communication is key
The HR team needs to have a thorough understanding of the ongoing recruitment needs of every scheme the business is involved in, as well as likely contract wins. This is a challenge for a national business, but it is critical. Clear communication will help achieve substantial recruitment cost savings and maximise staff retention.
• Job titles must be flexible
Job titles – and responsibilities – can change if seeking a new role within the company. Employees need to be encouraged to keep an open mind. When new roles become available, the HR team must market the core transferable skills required for the vacancy across the company, to maximise the chance of an internal appointment.
• Invest in training
To provide more opportunities for staff to transfer across the business, there must be quality training support to facilitate this.
• Listen to your staff
Support the roll out of the strategy through seeking staff feedback. Establish a staff consultative committee and conduct regular staff surveys. Obtaining comprehensive and regular feedback will allow you to monitor whether staff satisfaction levels are improving, and adjust the strategy if required.
Back to News Index