Recession and unemployment usually follow each other after the economy suffers a shock- or negative economic growth- for two consecutive quarters. Aside from resulting in companies cutting their workforce- it creates uncertainty about the future and often leads to foreclosures.
With the COVID-19 pandemic, the US and the entire globe once again faced severe recession and unemployment- the worst perhaps since the Great Depression.
Companies and organizations must understand the financial risks of unpredictable circumstances and prepare to prevent and recover from them. Talking to the experts in business and finance, we have put together some excellent tips on what you can do to help your company overcome recession and unemployment.
1. Engage Partners
“To sustain programs, engage partners, achieve a broader sale, and give employment, support from leaders and business owners is critical. Hiring individuals is the first and most obvious way for a company to help with unemployment. We, as business owners, have the option of hiring locals with the skills needed and compensating them adequately so that the rest of the community can benefit.”
2. Find a Balance With Employees
“I believe finding a balance with employees that generates benefits for both parties is very important to overcome the unemployment rate. The situation in the last year led some workers to want to quit or change jobs, according to some studies. Now employees are looking at work from a different perspective, and that is something that we human resources experts need to understand.
“If you want to increase productivity, take the time to speak with your employees to determine what the main motivations are and what their best productivity times are. Each worker has his or her own particular way to work. It is crucial to set goals that employees will be able to achieve during the time when they are most productive and devise strategies that keep employees motivated. The profitability of the company is directly related to motivated workers.”
David Adler, Founder & CEO of The Travel Secret
“The pandemic proved that workers could do well while working from home, and have changed their lifestyles around the extra time saved from commuting. With companies asking their employees to report back to the office, many workers are considering quitting their jobs.
“Employers must reconsider their back-to-work strategies, as employees now demand flexibility. Plus points to management offering extra time off and “no-meeting days” to address their employees’ growing burn-out concerns.”
Rowena Murakami, Co-Founder of Tiny Kitchen Divas Blog
4. Generation of Education, Health, and Employment
“Expansion of education and health care will not only increase the accumulation of human capital and so contribute to production growth, but it will also result in a large number of job prospects. More schools, hospitals, and clinics in rural and urban regions will not only provide jobs while they are being built, but will also provide education and health services.”
Teo Vanyo, CEO Stealth Agents
5. Have a Strong Talent Acquisition and Retention Strategy
“Based on our experience with the effects of the pandemic, I would say that having a strong talent acquisition and retention strategy is important now more than ever. Many employees are now choosier and more particular about the employer they want to work for. Companies that focus on creating and delivering top-of-the-class employee experience will attract much-needed talent and gain a competitive edge in a tough economy. With talent comes innovation and innovation is without a doubt the currency of the future.”
Ben Lamarche, General Manager of Lock Search Group, a staffing and recruiting company.
6. Start Your Own Work-From-Home Business
“I would recommend four ideas that one can start from home with a minimum investment.
1. Running a niche blog website (use WordPress to start);
2. Affiliate Marketing. (use Clickbank and JVZoo);
3. Filling out surveys that pay higher. (use Amazon Mturk and SuperPay.me);
4. Offering freelance consulting services (find projects on Fiverr and Upwork).
“The ideas that I have mentioned above are easy to start and develop. They can be executed either by a single person or with a small team. Scaling the revenue would also be easy and would require minimum investment. People are making on average $500/month to $10,000 per month, working online. The revenue figures that I have mentioned are an approximation; for a better idea, please google Blogging Income Reports or visit this site: Niche Site Project.
“I have used these websites for tons of research and also for getting started with making money online. According to me, people will be interested in making money online. Hence some of the ways that I have recommended above are very popular and are here to stay. Having a reliable income stream as a Digital Nomad helps one be financially more stable and independent, which is so useful and relevant during the current pandemic situation that the world is facing.”
Rohan Kadam, marketing consultant, an established entrepreneur and Owner of Biking Know How
7. Adapt to Change
“Overcoming the recession will be an individual effort, on top of working together. For businesses, it’s important to remain flexible in what you can do in order to remain profitable, whether or not we are in a recession. Unfortunately, the businesses that can not adapt will be the ones that will ultimately close. These adaptations could be becoming more digitized, changing their outreach strategies, or coming up with new product offerings. The more businesses that can adapt to change and keep their profits, the more employees can also remain employed as well.”
Nancy Belcher, CEO of Winona
8. Remote Work Strategy
“The remote workplace has expanded our team’s size greatly! The job market is certainly having a tough time bouncing back from the pandemic, and businesses like mine are doping what we can to increase our hire rate. Since the pandemic hit last Spring, we have transitioned to the remote workplace and have actually been able to increase the size of our teams. Because we’re not using a physical office space anymore, we have the workplace flexibility to dramatically scale our business and hire remote, out-of-state employees.
“My business isn’t going to fix the job market, but companies across the country who have made a similar transition should take advantage of their remote capacity and onboard as many new recruits as they see fit.”
Laura Fuentes Operator of Infinity Dish