We are in another state of transition where we are hopefully looking in our rearview mirrors (for now) at the recession of 2008.  Everything is cyclical, and in staffing nothing rings more true.  So, how does a staffing company move forward in providing excellent service and benefit to prospects and clients?  There is more than one answer and always two sides to a coin……..

Businesses are regrouping and retooling internally to best position themselves in the economic upswing.  All companies have clients for their product and utilize many ways to market and sell, but people are a key cog in the wheel.  For example, you have a sales force to push your services but you had to cut back on the number of your team by half last year due to the recession.  You need to get back to meeting the numbers required for your company to be profitable.  Thus, a problem (I like to call it a challenge) arises.

How do you meet these numbers with half the resources? Quite simply, the old adage of “you have to spend money to make money” should be on your radar.  You invest in people and people will bring revenue to your company’s bottom line.  Going in the woods to fight a bear with a wooden pencil is not a recipe for success.  Invest in your sales force and get that revenue stream rolling while landing new clients and satisfying existing ones.

“But I don’t have the budget for additional headcount.”

Your organization began a 2 year implementation of a global ERP system that cost several million dollars.  The project budgeted for X amount of consultants but had to be reduced in headcount, and the timeline to completion has been pushed back 12-18 months.  Along I come, from a staffing company, with the ability to get you the talent and expertise to get your ERP project back on time.  You tell me that you cannot afford to replace the 3 consultants that you scaled back on last year.  Hmmm…..the problem (remember, I like to call it a challenge) is not that you don’t have budget for additional headcount. It’s that the VALUE of the ERP project is not being considered.  Taking an additional 12-18 months to complete will probably cost a lot more than the additional headcount.  If I provide you with the right candidates, and you see that they will bring immediate value to getting the project back on track, THAT is something that can be measured.

Not every situation is the same.  My job is to find new opportunities.  I define opportunity as a situation to be a measurable resource.  If I help a client fill their jobs, that is success.  If I market a candidate to a company, open job/project or not, and the client can utilize this person within their organization, that is success.  Remember, everything is cyclical…….just like life, enjoy the ride!

During these down times, companies are looking within to find cost-cutting measures to survive the rollercoaster of economic recession.  Many will experience such a negative impact on their business that rebound may be too difficult.  Staying lean across the board – through reduction in people, technology, bonuses, etc. – is what every company seems to be doing.

But…what about your business? How lean is too lean? Organizations in a crisis tend to slash and cut with a short-term mentality.  Wouldn’t you rather thrive, than merely survive?

“It is well documented that brands that increase during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”

Harvard Business Review

People

The downside to reducing staff is the inevitable pause of projects due to lack of resources. Consider using contractors to finish projects and keep goals on track. Many times, contract resource costs can be applied to project and/or expense budgets.

Technology

Fiscal downtime is no reason to cut back on technology or hold projects in queue, waiting for the upswing. Improving efficiencies and streamlining operations is a crucial component to staying lean, and preparing for long-term success. Investing in technology (or remediating underperforming technology) supports this goal.

Bonuses

Employee reward programs are often the first to go during economic downtime. Remember, employees must work together during these times to achieve business goals. Pulling extra weight deserves recognition and appreciation. Consider small tokens of reward for employees that go above and beyond. Sometimes just knowing you’re appreciated is enough to satisfy until bonus programs resume.