Employee Retention and Benefits During Recession

Last Updated: 10 Aug 2020
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It is important for every employee to ensure that his or her performance is constantly and substantially adept in order to ensure career growth and job security, in order to reap the benefits that he or she would rightfully deserve. However, there are circumstances beyond one’s grasp that can affect an employee’s work performance. As such, recession is one of the factors that may affect the performance of every employee within a company. During recession, the Human Resource Department of the company should think of strategies to keep their employees intact and assure them of benefit plans.

Recession is perhaps one of the serious problems a company can face. It is usually characterized by an extended decrease of activity in the workplace. To address issues and concerns during a recession period, some American companies have thought of ways to save corporate budgets, while operating in margins (McIntyre, 2008). In particular, the Financial Executives International has already reported how serious and how bad things are during a recession period. With the trends that are being caused during recessions, the reactions of big corporations against the slowing economy are easy to predict.

Some possibilities that companies resort to include cutting job hiring processes, decreasing the capital spending, deferring Research and Development funds, and in worst case scenarios, freezing the payment for the employees. These actions will make recession deeper as suppliers will tend to cut costs. Employee Retention Recession is a bad omen for companies and businesses. In most cases, although senior managers would feel hesitant of letting go of their competent employees, most of the employees feel anxious of losing their jobs. 

Learn which of the following circumstances usually comes before a period of economic contraction?

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This kind of situation adds to the managers’ and employees’ worries on financial and job security, which often leads to deteriorating focus on their jobs (Craig, 2008). A study has revealed that four workers out of five caught amidst a recession period were not able to work at their optimal level, and as such, two out of the five employees “checked out. ” With the looming recession, workers’ fears hit the ceiling and it distracts other workers. This means that recession greatly affects the productivity of workers.

This serves as critical news especially to a company that struggles for margins during bad times. However, rewarding the workers well and appreciating them will keep their productivity from waning (Craig, 2008). If the company has to let go of some workers, it should let go of the ones who it can afford to lose. Thus, managers must be able to skillfully and carefully determine those that the company needs most in order to gain stability. Another way to survive is to monitor the company’s competitors.

Since workers that are good and competitive are at a premium, competitors might try to pirate them from the company. This is why it is important that managers think about the long term service and assessment of every employee. They should put in consideration how long the recession may last, and how many workers they will need when the economy gets better. Managers should avoid the mistake of getting rid of good employees who are productive and efficient in their works.

One of the hindrances that a company may undergo is being short-staffed after the economic downturn, or finding out that the people they hired after recession are second rate and less competent than the ones that they have let go of. Thus, it is very important for managers to know how they can “attract, engage, develop, and retain talent for high performance” (Ceplenski, 2008). Communication is also one important aspect that must be maintained during a recession. Communication within a corporation entails more than taking the initiative to send out e-mails to the employees.

To ensure good communication with the employees, it is better to round them up for their questions and adequately answer the employees’ queries. The management, at all times, must be present to address the workers’ concerns (Craig, 2008). It is necessary for the company management to ensure their employees that their welfare is one of the top priorities of the company. As such, managers must make it a point to update their employees about the developments and to acknowledge and recognize their loyalty and efforts for the company or organization.

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Employee Retention and Benefits During Recession. (2018, Mar 16). Retrieved from https://phdessay.com/employee-retention-and-benefits-during-recession/

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