The Recruitment Industry’s Role In Recovering From A Recession
As we all know, the last 12 months have been a huge strain on our economy and the effect of the pandemic is going to be with us for many years to come. It does not take a genius to work out that we will be going into a recession but hopefully not a depression, which we have not seen since the 1930s. This will mean recruitment companies need to be very vigil over the next few years and I think if they are aware of the following then they will be in a very strong position to weather the storm and come out the other side stronger, leaner, and more profitable with cash in the bank.
Be On Top Of Your Cash
Cashflow management is the key, where firms have been quick to take advantage of the very generous time to pay arrangements offered by HMRC this has to be factored into your future cash flow requirements. Ongoing cash flow forecasts have to be prepared and kept up to date. This is NOT an option as it will show any potential issues in the future well before it happens so advantage can be taken of government-backed loans if required.
Manage Your Relationships Proactively
You need to be touching base with your candidates and clients on a regular basis to make sure the relationship is solid and as strong as possible when business starts to pick up. When was the last time you called your top client?
Lead By Example
During a crisis like a recession, it’s important for the leaders to communicate to the team on all the important issues such as team changes, cash flow issues, working remotely, etc. Combined with the fact that it is important that the senior managers back the difficult decisions, that the owners need to make.
Engaging With The Team
If there are big changes to implement then how well you communicate this to the team will have an impact on how it is received by everyone, and consequently the success of the changes. Are you a boss that springs changes on to your team or do you discuss it with them to make sure everyone is aware of what is happening?
Investment In Technology
If remote working is the way forward, then you have to invest in the tech to ensure your team can work as efficiently as possible. The additional 30% super deduction from 1st April will help fund this if this is a path you need to go down.
I would say that keeping an eye on these five issues will help you get through a tricky period coming out of lockdown and ensure you are best placed during the recession. Working practices will no doubt change and now is the time to embrace this by utilising the technology that is out there to be one step ahead of your competitors to help your team find the perfect work/life balance. Plus, now that we have been working from home for 12 months, who wants to waste hours stuck on a crowded tube?