Train to Gain a Recession-Resistant Workforce August 13, 2008
By Margery Weinstein
Your best weapon against the possible (increasingly likely) recession? Not that fancy business consultant with his monogrammed, Italian leather briefcase. Instead, your very own employees may be the answer, according to global business performance consultancy McKinney Rogers. The firm, which surveyed senior business executives around the world about their strategies for dodging a recession, has some interesting findings to share:
• North American business leaders believe putting their faith in developing the skills and abilities of their workforce is the best way to reduce an organization's exposure to the risk of recession. Seventy-eight percent of respondents cite the development of their workforce as the key tool for this. An equally high number (73 percent) agree moving into emerging markets that are unlikely to be affected by recession also is important, with the highest agreement coming from North America and Asia-Pacific.
• Diversifying the business offering was classed as a significant recession-proofing tactic for 67 percent of those surveyed. Conversely, reducing the number of employees (34 percent) and reducing marketing spend (23 percent) were classed as the least important tactics to pursue in safeguarding against recession.
• Other initiatives cited in the research were cutting prices to become more competitive (38 percent) and consolidating business premises and locations (50 percent).
• "It is interesting to see what business leaders focus on when recession is looming—their workforce and diversification. It is obvious that at times of economic slowdown, getting organizational buy-in as a whole is vital, which is why taking a strong leadership approach is such a key part of thriving during these times," says Damian McKinney, CEO of McKinney Rogers. "Leaders need to instill the ability to reenergize, rethink, and refocus the business, using realistic targets. A company's workforce is an essential tool in the business armory when the going gets tough."
• When asked about the importance for businesses to have plans in place to reduce their exposure to the risk of recession, nine in 10 business leaders—including a large number from North America—agree this is now very important. Despite this high figure, a relatively low number (32 percent) have advanced or very advanced plans in place, indicating that many companies might be caught short in the event of a recession.
• "It is vital businesses have their house in order by having a clear focus and strategy in place, as well as ensuring resources are suitably allocated to provide the best return on investment,” says McKinney. “That way, when a recession does strike, they will be able to stay lean and emerge stronger."
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