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Personnel policy of the company during the economic crisis

Published: Sun, 06/10/2012 - 14:29
By: admin

The economic crisis lead to a decline in business activity, reduce production and consumption of goods and services. In this situation, the business organizations to optimize their costs by reducing the cost of maintenance of territorial representation, event marketing and labor costs.

 

Reducing labor costs is realized by terminating the employment of new staff and existing staff layoffs. However, this personnel policy leads to a loss of reputation, breach of the production cycle and the fall of the motivation of remaining staff. What should be the personnel policy of the organization, which expects to remain on the market after the crisis?

 

• The crisis is the best time for hiring good people from competing companies. First, we should pay attention to sales professionals, executives and product managers.

 

• If production facilities are idle, the company's staff can engage in alternative jobs. Financial losses associated with the maintenance staff will be paid back after the crisis, as the company will be able to quickly return to normal operation.

 

• Organizations working in the service sector can organize events on training and staff development. In this case, the crisis will be for the company is not down time, and the period of preparation for market expansion.

 

• Organize team building activities to support staff motivation during a difficult market situation. These events are one of the cheapest means of crisis management.

 

• Some reduction in staff is the only step that can ensure the survival of the enterprise. Layoffs should be carried out in compliance with the law. Also, all departing employees should receive severance pay, a letter of recommendation and assistance in finding employment.

 

The economy is cyclical nature, so that every recession is always followed by an upturn. Leaders of organizations should take this into account when planning the personnel policy. This will enable businesses to maintain competitiveness and reputation, even in difficult market circumstances.