It's not all bad!

Downturns are hard for managers, but they bring benefits too.

Hiring and keeping good people is easier when new jobs are scarce. A recession tips the balance between employer and employee in the company's favour. It may be easier to find good talent, although this will change quickly when the good times return. This is a good time for companies to invest in high-quality staff.

Recognise the value of your people

When market conditions are tough, many companies may find it difficult to motivate employees and maintain productivity levels. Whether you are struggling to deliver business as usual, or are managing a targeted restructure, identify the talent that cannot be lost.

Map your talent across the business and identify possible succession risks after the downturn, develop strategies to hold on to employees who may be targets for headhunters, act now rather than waiting until the economic climate changes.

Redeploy your existing staff, rather than adding to your headcount, and offer internal promotions earlier than planned. Give employees new challenges. Show you value your employees, offer development opportunities and discuss their future with them.

Manage and reward performance

You need to have a transparent and robust performance management process in place which ensures your employees feel recognised for their contribution encourages the right behaviours necessary to deliver your targets.

Do not rely on the same reward structures you used when times were good. Put in place the right incentives will drive the behaviours necessary for your survival and motivate your key staff to commit to your business.

In conclusion

The way that a company deals with a downturn is not only the best proof of its management resolve; it may also determine how well the company does when things improve.

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