Think Forward for Future Success
By Megan Martin
Good news for the economy: According to a March 2009 Associated Press article, home sales are up, the demand for goods is increasing and the White House is optimistic about the nearly 20 percent improvement in stocks.
Despite these advancements, the credit freeze and mass layoffs of the past 12-18 months are still creating quite a scare among companies. While the consensus is that most layoffs have already occurred and credit markets are recovering, companies haven’t bounced back psychologically.
One source of this psychological turmoil, says Scott Webb, Managing Director of SALO Project, is the media.
“It’s too much to take in, and there’s so much information coming at us that it’s extremely difficult to see past the negativity,” he says. “The ongoing uncertainty has created a paralyzing effect among employers. The news that unfolds is so negative that companies feel restricted about how they should react to more positive changes that are occurring.”
So, how should companies react?
“Understanding the reality is one thing, but you have to take it in bite-sized chunks, and ask yourself: How is my organization fitting in with this?” says Webb.
On the positive side, he notes, there have been recent stock market upswings and positive economic indicators that suggest a better climate. And employers are realizing that while the current situation isn’t ideal, they still have businesses to run.
“Organizations need to look forward and move on,” says Webb. “Employers realize that their companies are going to survive, and the economic world as we know it isn’t coming to a halt. They’re beginning to stabilize, but many are still stunned by what has happened.”
If you feel uncertain about what comes next for your company, here are some ideas to help you start moving in a positive direction.
Take Projects off the Back Burner
“One thing companies are recognizing is that the projects and initiatives they put on hold during economic uncertainty can no longer wait,” says Webb. “The projects are there, now the question is how to implement them.”
If you have financial concerns or are operating with a lean staff, Webb recommends looking at the possibility of less expensive short-term projects, and bringing in consultants for a limited time period.
“No project is insignificant,” says Webb. “All of these projects can have an impact on a company’s profitability.”
Which projects will help to set you up for a brighter future once the market settles? Take inventory, and get to work.
Retain “A” Players
Massive layoffs and negative media coverage have had a brutal impact on employee morale, and companies need to make an effort to reward their “A” players.
“Now is the time to take a very aggressive position to retain top talent,” says Webb. “Because of the market, pay increases and bonuses have been frozen. Employees have made sacrifices but have seen few rewards.”
He also notes that the main reason employees haven’t moved on is not necessarily because they’re satisfied where they are, but because they’re afraid of being unable to find a new position.
Communication often breaks down during trying times. If employees have been the last thing on your mind, it’s important to put them at the forefront again.
“Companies are seeing the light at the end of the tunnel, and they need to pay back these employees for sticking with them during dark times,” says Webb.
Implementing new incentives to make employees feel valued is a must. While it may not be possible to increase pay or benefits, companies can implement creative incentive programs that recognize employee efforts. Keeping employees abreast of your plans to increase pay or benefits will let them know that you’re considering their futures as well as the organization’s.
If you’re unable to make promises because of financial difficulties, you may consider allowing employees to telecommute or have part-time schedules so they can enjoy more time at home with their families.
Build New Relationships
Even if you can’t afford to bring on new talent right away, a slower economy can be a great time to build relationships with potential candidates. The truly gifted are, in many cases, willing to consider a change.
Create relationships with people you’d like to bring on board in the future, particularly if there is a specific gap in your team that needs to be filled. While many candidates will be nervous about leaving their positions, others may be reevaluating their own futures and searching for new opportunities. They may be more open to change—even if it won’t happen immediately.
Reevaluate Yourself
Webb says it is not the best time to cut back on products and services, but it’s definitely time to reevaluate your offerings.
“Companies should be looking for services that they can enhance or build upon,” he says. “Sure, you may abandon old products and services, but you should also really ask yourself what you need to keep in place and how you can make those better.”
Webb says that what’s most important is to look at which services make your company unique. What is your company’s niche? How can you set yourself apart? How can your company’s services benefit others during these uncertain economic times? “You have to ask yourself: What do you offer that will differentiate you from competitors?” says Webb.
Thinking forward could also create new opportunities for your current employees. If employees feel that they are an integral part of your company’s future, they will be more loyal. Who would be the best person to initiate a new project, or to help envision a new plan for an old service?
Give your team the chance to take ownership of new initiatives.
If you can begin taking steps to accomplish even a few of these goals, you’ll be setting yourself up for a bright new future.
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