Staffing and Recruiting Experts Present Top 6 Ideas to Recession-Proof your Firm
There’s no denying the economy has taken a downturn over the past year, and experts predict things are only expected to get worse in the coming months. According to Forbes, several economic factors are affected by a recession, including job growth rates and foreign business investment. In particular, small businesses are often significantly affected by recessions, especially ones with poor management and cash flow. Businesses that take a proactive approach to recessions, rather than a reactive approach, tend to survive economic hardships without falling too far behind financially. As you prepare your business and workforce for the year ahead, here are six key tips from top staffing experts on how to recession-proof your business in 2023.
1) Secure Financing Ahead of Time.
With a downward economy, it’s in any business’s best interest to be proactive in securing financing. Recessions are known to create unexpected financial challenges, especially for companies that aren’t prepared to handle these obstacles. Rather than wait until your bottom line is affected, it’s far better to take measures that allow your business to receive funding before it’s needed. Securing working capital will be essential for keeping your business afloat if cash flow is affected. You can raise capital in many ways, including small business loans, crowdfunding, and government grants and subsidies. From equipment and inventory to labor costs and services, ensuring funding for your business and securing capital before a recession occurs can be critical for combatting devastating financial hardships.
2) Lower Excessive Expenses.
Getting a handle on excessive expenses is an important part of recession-proofing your business and maintaining a positive financial state, despite hard-hitting external circumstances that can affect your bottom line. By comprehensively assessing your business expenses, you can identify unnecessary expenditures and formulate a plan to save on costs. For example, you may determine that your most substantial costs are associated with accounting software or a payroll management system. In this case, you may consider outsourcing accounting or payroll to a contractor or professional company that can provide these services at a fixed, reduced cost. Examining all overhead expenses allows you to spot excessive or unnecessary expenditures while improving your bottom line. If you’re struggling to evaluate your finances, consider using a reputable financial advisor who can assist with the assessment process and help you devise a plan to cut down on costs and prepare a budget.
3) Dive Deep into Your Business’s Staffing Situation.
Unfortunately, many business leaders fail to realize the importance of staffing when preparing for a pending recession. Before and during a recession, one of the most effective steps you can take for your organization is to dive deep into your business’s staffing situation. This involves evaluating current and future staffing needs and staffing costs – including hiring, recruitment, and onboarding expenses. In many instances, businesses discover that staffing is their biggest expenditure. Whether it’s the cost of salaries and benefits for full-time employees or the cost of the recruitment and hiring process itself, staffing expenses can be a tremendous burden for businesses over time. In light of an expected recession, it can be helpful to consult a staffing agency to explore outsourced staffing services and how they can be of value to your hiring needs. Staffing firms specializing in your business’s industry can be instrumental in reducing hiring and recruitment costs associated with screening and background checks, candidate interviews, and onboarding procedures. A major cost saving from utilizing a staffing firm is also the ability to hire temporary or temp-to-hire employees. Hiring employees to work in a temporary or temp-to-hire capacity eliminates the need to invest in full-time staff while also allowing your business to “test drive” potential employees for permanent roles. “Test driving” employees can result in improved retention (and, in turn, less future hiring costs), allowing you to better assess which employees are the best fit for your business’s workplace culture. Lastly, staffing firms afford businesses the luxury of hiring talent only when labor demands are present. During slow economic times (such as in the middle of a recession), many businesses opt to slow down their staffing and increase hiring when demand is highest. For these reasons and many more, your business can greatly benefit from a staffing agency to lower costs and maintain a stable workforce.
4) Make Data-Driven Decisions.
The period before a recession is not the time to make leadership decisions on a whim. Businesses that make informed decisions based on data-driven findings and insights are more likely to overcome challenges without compromising their bottom line or the quality of the workforce. Data-driven decisions can improve many functions of your business, including finances, marketing and sales, and customer service. Many initiatives can be implemented to take a data-driven approach, including employee surveys, financial analytics, and operational efficiencies. By implementing data-driven strategies, you can acquire the necessary information to manage your business optimally, even during a recession.
5) Gain Insight from Employees.
Gaining direct feedback and insight from employees can allow your business to make the best decisions for your business. This is especially crucial when the economy is suffering, as internal decisions can often make or break the state of your finances and workforce. There are many ways in which you can regularly generate employee feedback, including one-on-one meetings; periodic team check-ins; and open-door communication practices. Making a sustained effort to listen to employees, address their concerns, and involve them in decision-making can help with business decisions, enhance employee morale, and increase staff retention. After all, your employees are your greatest asset. Making them a priority – especially during times of uncertainty – will show them you care about their roles within your workplace and value their thoughts, talents, and contributions.
6) Outsource your Operations to a Staffing & Recruitment Agency.
As the economy and workforce fluctuate, staffing and recruitment agencies will continue to be an asset for businesses for many reasons. As an outsourced partner, a staffing firm can provide a strong support system for all hiring and recruitment needs, giving your management and HR team more time to focus on other aspects of your business. This can be especially helpful during a recession when many employers face internal roadblocks that take their attention away from day-to-day operations. Additionally, staffing firms allow for fast and efficient hiring when it’s needed most. During a recession, it’s common for companies to utilize temporary or contract staff rather than invest time and money in full-time employees. A staffing firm can instantly handle fluctuating staffing needs and fulfill open roles with a very quick turnaround. Along similar lines, recruiters have the ability and access to source top candidates with the skills and qualifications to perform at a high level. Between increased hiring efficiencies and top talent, outsourcing hiring and recruiting needs to a staffing agency can be a game-changer for your organization during a recession.
Partner with a Staffing and Recruitment Agency to Recession-Proof your Business
If your business is based in Atlanta or the surrounding area, it may be time to consider working with a recruitment agency like BOS Staffing! From medical offices and call centers to manufacturing facilities, the expert recruiting team at BOS Staffing is equipped to handle all your temporary and temp-to-hire staffing needs. Most importantly, we’ll work with you on a customized staffing plan that ensures your business can operate at its best even during the hardships that a recession can bring. Partnering with a staffing firm that understands your business’s short-term and long-term needs – and can customize strategic staffing services to fulfill your workforce demands – will set your company up for success even during a recession.