How employers can take advantage of the downturn

The current economic conditions are undoubtedly being felt in the workplace today. The media seems to be filled with stories about companies laying off and making staff redundant and job advertisement levels have recently plummeted, which is another indicator that employers are watching their wallets as they brace for the impact of a looming recession.

While many organisations must scale back their workforce or freeze recruitment initiatives to minimise costs and survive, for those firms that are financially stable, now is an excellent time to invest in hiring, retention and training the right staff.

With declining competition among employers for staff and a potential increase in job seekers means that right now could be a great time to hire, with highly skilled and qualified staff softening their salary demands in response to the economic conditions. Similarly you may take advantage of a slowing economy to hire graduates and train them in readiness for a recovery to prevent the chronic skills shortages seen as a result of the 90’s recruitment freezes in accounting, finance and engineering.

Competitors will often seek to imitate successful products, copy pricing or undercut promotional specials, but the quality of your people will help define your business and will be the most difficult aspect of a business for competitors to emulate. Organisations who opt for a ‘lean and mean’ structure as a cost cutting exercise will find that they are left behind by strategic and responsive competitors when opportunities arise.

For further information and advice on how you can take advantage of the economic downturn to improve your competitive advantage contact Kate Klease or Richard Dunks on (07) 3229 5750.