Many companies have recently faced challenges from Covid, labor shortages, supply chain issues, and the list goes on. So, you are not alone! With these obstacles creating a rise in inflation, the market seems to now be taking time to cool off, which is not all bad! Whether this is a short breather or a longer recessionary time, companies need to be prepared for any scenario. Here are a few pointers on things to consider.
Rethink your team
Based on your internal business changes, along with market changes, this is a great time to consider if you have the team to meet those new challenges. Or, if you have added on positions to meet the fluctuating needs that you need to reconsider. Review your business process, including new and future changes that will meet market needs, to realign the team to fit those. As revenue per headcount changes, you will have a better idea of how to change with that.
Revisit Your Technology
Consider areas that you can enhance to create efficiencies for the future. As the labor market continues to tighten, evaluate your core processes and automate, streamline, and eliminate unnecessary tasks so that you can become as efficient as possible for continued profitability.
Team Development and Backups
With Baby Boomers retiring, and the labor market still tightening, now is a great time to ensure you have a strong bench for your key positions (those critical roles to meet your business process, as well as unique roles that are hard to replace). Setting up a succession and development plan that covers the next 1–5 years is more important than ever to ensure business continuity.
Review your Financials
Take time to figure out what is working, what is not really profitable, how your business and customers are diversified, and how your marketing is positioned. This is a great time to review successes and new plans/opportunities with customers, reach out to your network to build new sales & referrals, as well as reposition your market focus if needed. This gives you a chance to refresh your focus and set a clear plan for the future.
Set up Your Contingencies
Whatever the market may bring, having a plan in place for a real slowdown just makes good business sense. You have already identified your key positions and how many of those you need based on revenue projections. Now, consider options of fluctuating your workforce to balance with market fluctuations. You’ve worked hard to get this team so figuring out how to keep the key ones will be essential. Whether it is offering Voluntary Leave time, reduced schedules, or temporary furloughs, maintaining your key team members while balancing your budget will be an ongoing process.