Startups have been encouraged to develop skills and not retrench their workforce to overcome the recession.
According to an international survey of senior business executives launched today by global business performance consultancy, McKinney Rogers, business leaders believe that putting their faith in developing the skills and abilities of their workforce is the best way to reduce an organisation’s exposure to the risk of recession,
With recent media attention focusing on the impact of sub-prime lending and the possibility of the current economic downturn turning into a full-blown recession, the survey, which encompassed Europe, Africa, Asia Pacific and the US, was designed to gauge awareness, perceptions and trends on the issue and what can be done to minimise the risk of a recession’s impact on global business.
Key findings emerged when executives and business leaders were asked about the importance of tactical actions in reducing an organisation’s exposure to the risk of recession.
An overwhelming 78% of respondents cited the development of their workforce as the key tool for this, while 73% agree that moving into emerging markets that are unlikely to be affected by recession is also important.
Diversifying the business offering was classed as significant for 67% of those surveyed.
Conversely, reducing the number of employees (34%) and reducing marketing spend (23%) 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%) and consolidating business premises and locations (50%).
Commenting on the research, Richard Watts, Regional Partner for Europe at McKinney Rogers at McKinney Rogers said, “It is interesting to see what business leaders focus on when recession is looming – their workforce and diversification.”
Watts went on to say that at times of economic slowdown getting organisational 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. Leaders need to instil the ability to re-energise, re-think and re-focus the business, using realistic targets.
“A company’s workforce is an essential tool in the business armoury when the going gets tough. Making productivity a focal point and rewarding those who rise to the top accordingly, will help reduce an organisation’s exposure to the risk of recession,” says Watts
Minimizing exposure to recession
When asked about the importance for businesses to have plans in place to reduce their exposure to the risk of recession, a staggering nine in 10 business leaders agreed that this is now very important. Despite this high figure, a relatively low number (32%) have advanced or very advanced plans in place, indicating that many companies might be caught short in the event of a recession.
Watts says, “these results clearly highlight a real understanding across the business community of the value of forward planning in limiting the damage of a potential recession, as well as the tactical actions that need to be taken to achieve this. However, it is worrying that such a low number of business leaders and organisations have these advanced plans in place.
“Any time, whether a recession is imminent or not, it is vital that 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. That way, when a recession does strike they will be able to stay lean and emerge stronger.”
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allies needs to get a refund on his econ class. the feds have just come out with last quarters growth numbers. the first quarter of this year we had 0.6% growth, and that is NOT the revised number, which will come out next week ,and will be closer to 1% growth. therefore we are NOT in a recession. but keep hoping, allies, maybe it will start this quarter
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The best way to prepare for a recession (or anything for that matter) is to have as little personal debt as possible. Having a six-months-expenses buffer of easy-to-get-at cash (e.g. bank accounts, redeemable CDs, &c) is even better. The main risk for someone working for salary and not invested in the stock market is that they'll lose their job, and if you can honestly say, "if I lose my job I'm good for a while until I can find another one", you're golden.
Prices *should* go down during a recession, but may not because of price stickiness. The rising cost of gas may force some staple goods up in price as well if they need to be transported. If you shop farmers markets for veggies, your food bill will probably be OK. If you're a fan of imported French cheeses, maybe not.
As for benefiting from a recession, if you're not in the stock market, the middle of a recession is a great time to start being invested in the stock market, since everything will be on sale. Also if you've been thinking of buying a house and have good enough credit to land a mortgage, houses are very much on sale, too.
Sure could. Recession reduces revenues (fewer people can afford to fly) and increases costs (fuel, parts, labor, insurance, financing…).
Airlines do everything on a seniority basis, and the most recently hired people are laid off first.
So be prepared to think of a backup career. Fast Food is the first that comes to mind.
This is all common knowledge.
True, I think, as a snapshot at a given point of time.
But lower prices hurt the businesses that furnish the goods and services, putting them at risk of going out of business or not making a profit. The result of either of these consequences is to put the jobs of their employees at risk and increasing the probability that they will be put out of work or have their wages reduced.
so what who cares if i dont know how to spell olympics and besides why does it fucking matter if i fucking put an extra ‘re on your
1. The stock market decline has cut the endowments for humane societies, meaning that less money is available for services. Open hours at shelters get cut. Ability to care for animals goes down. Shelters close to save money. (MA is closing 3 SPCA shelters)
2. People less likely to adopt pets. Shelters get full.
3. People give up their pets to shelters. If you lose your home, you often can't take your pets with you to a rental. If you can't afford people food, pet food is a luxury. Vet bills are an issue. Job loss increases abandoned pets.
4. People abandon pets to the streets or to shelters, pets often sick or suffering from neglect. Shelters have to pay more for care, euthanize more animals.
5. Shortage of donors and volunteers.
It’s funny that you call people retarded and then you spell “olympics” and “you’re” wrong. You fucking retard.
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For most companies, I wouldn't be expecting them to be hiring until the latter half of this year. I did get a call from a recruiter who was looking for someone to work contract work down in Mexicali for Gulfstream for $55/$60 an hour. The downside is that it is in Mexico.
Hi William,
The economy in this country is very cyclic, you can expect a minor recession every 10 to 15 years and a major recession (such as this) about every thirty years. The last housing downturn was in the early to mid '90's then went into a boom then back down again to where we are now. So, if you think about it, this is actually the begining of the next boom. There are several reasons we are going so low this time, such as ARM loans, option arms and of course rising gas prices. The latter is the worst thing that could happen right now.
you are the truth lol
Higher unemployment, worse in some industries than others. Stagnated or decreased wages. Decreased capital income to investment accounts and savings accounts. Prices don't escalate as much as they become more difficult to reach because of a devalued currency.
Assets depreciate, which tends to hit housing the worst. Housing is a big block of asset, instead of something like stocks which can be sold off at small losses per share. You can't sell a piece of a house. You can only sell the whole thing.
With rising unemployment, stagnated wages and frozen activity in assets, leading banks to lend less money, it means housing prices will REALLY descend.
But don't get too excited over that if you're not a homeowner, thinking you'll be able to get a house cheap. If you depend on wages for your income the most, you won't see enough of an increase in your wages or enough opportunity to increase your wages to attract lending for that purpose.
Many companies are shunning away from recent college graduates unless they have some experiences these days.
Do not just rely on your BS in Bus. Admin degree to give you a job. You may have to start working from odd jobs you never dreamed of before (not online!)
Concentrations in something won't make any differences. My accounting degree didn't matter till I passed my CPA exam in 2007.
Grab what you can, get into a system, then browse around.
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