Coming Out Of A Down Market Ahead Of Your Competition
The economy is not headed in the right direction and you are scrambling to figure out how to strategically navigate the windfall. Loss of profits has you reeling for a solution. Finally you decided it's time to let people go as a way of balancing the books. First round ten people and the second round ten more. Finally you get some breathing room for your bottom line. What happens when the market corrects and things come back faster than you imagined?
According to ADP it cost about $4,200 to hire someone and another $1,000 for training. The average time to fill the position, 42 days. This does not include the salary which ultimately will cost you more do to the current climate of the workforce and it's not going to get any better. Bear in mind, your new employee production levels will not live up to a more seasoned employee, typically. So, what is the real cost?
Between the time of the position not being filled, moneys' invested hiring back another 20 people, salary increase to attract new talent, loss of business due to unfilled positions, the length of time to get your new hires up to speed so they can produce, your total cost comes in at a negative when compared to retaining your team.
Even after you take into account the expenses and time vested, you are back in rebuild mode when you should have been prepared to take advantage of the bounce back. Now you are scrambling, forcing your team to fill in the gaps of the missing positions.
How is it that every company knows this type of strategy costs more in the long run, demoralizes the team, and creates uncertainty, yet still chooses to move forward with this plan?
What you should be doing is preparing for the bounce. Take this time to elevate your employees. Invest in their growth personally and professionally. Give them a reason to come out of the bottom with force.
This is an opportunity for you to take advantage of, especially when other companies have fallen for the same trap. Yes, it can be stressful but it will send you catapulting to the top when the dust settles.