Now more than ever, businesses need to be aware of their own numbers. There have been many claims of ‘green shoots of recovery’ in the past only for more hard times to be just around the corner. Business owners need to have the finger on the pulse of their own business and look at recovery in their own terms – rather than believing generalised press articles and making expenditure decisions based on media hype.
One challenge which is likely to come up is a sudden fluidity in the job market. Many employees have been staying in jobs they would have previously left – keeping their heads down and being glad of any job in a recession. As signs of recovery become stronger, many employees who’ve been biding their time will look to move on.
This could have a significant impact on smaller employers who were looking at a bright exit from the recession and suddenly find themselves hit with the disruption of a reduced workforce and the unforeseen cost of replacing leavers – the combination of which could send more small businesses over the edge.
So a smart business will either be planning for that cost or working to avoid it. That can be done in one of two ways – taking the opportunity to outsource that particular job function – which is feasible if it isn’t the core business activity; or ensuring their company is such a great place to work that employees aren’t tempted away in the first place.