(February 2025 Newsletter article)
Wow, what a difference one month has made in our world. So many uncertainties which are resulting in tumultuous times, making it feel quite unpredictable.
If you believe your business will be impacted by these uncertain times, consider ways to create more stability, efficiency, and reduce costs in your business. I’ve listed some ideas below that may help out.
Analyze your sales and pipeline and consider diversifying your client base and different approaches to getting different or new clients.
Consider Lean and other efficiency practices to help your business run more effectively and reduce waste and keep your pricing competitive.
Renegotiate prices with suppliers or find less expensive options.
Source local or other suppliers that may provide more stability.
Evaluate spending, review work practices, and cut non-essential spending.
Develop SOPs (standard operating procedures) to ensure consistency of product, service, and quicker training of employees.
Evaluate your working buildings and spaces – are they necessary? Cost-effective?
In terms of labour costs, consider flexible work arrangements, such as voluntary time off.
Freeze and stop any new hiring as you consider options.
Consider reducing work hours on a temporary basis.
Freeze bonuses and salary increases, again, as you consider options.
Crosstrain employees to perform multiple tasks, increasing flexibility and allowing for greater workload adjustments.
Review employee benefits for cost savings.
If need be, consider temporary layoffs or furloughs.
Or look into the work sharing program (a program funded by Employment and Social Development Canada that allows you to avoid layoffs when there is a temporary decrease in normal levels of business activity, beyond your control).
If absolutely necessary, consider temporary salary reductions. Work with HR and/or Legal to make this work.
NOTE: A well-written employment contract can help you take some of the steps listed above more easily. Check out our blog on this. You’ll read some of the tips listed above and learn more about how employment contracts can reduce legal risks in the event of temporarily severing the working relationship.
All the aforementioned options require careful consideration, accurate data, and planning.
If you are considering any of these approaches, be aware changes can trigger feelings of anxiety and perceptions of company and job insecurity amongst your staff. This is why it is important to have solid communication and change management plans to protect your business, reputation, culture, and staff.
A recommended way to approach changes in your workplace is to communicate openly with your staff about what is happening and why. It can protect morale if you make this process one in which your employees feel they are a part of and if they understand the rationale for the change.
Don’t overlook giving employees the option to participate voluntarily in tightening up the business and exploring cost reduction opportunities. In addition, letting staff know what you personally are doing to make changes will help the team come alongside you as you navigate through the ups and downs.
Finally, keep your corporate values and culture in mind. Making changes will impact on the culture on a temporary basis, so keeping your values in the forefront as you navigate through these times and consider your options will help you stay grounded and true to your business vision and mission.
Although the times we are living in now may require short-term solutions, consider strategies that may lead to sustainable efficiencies and stability, growth in new areas, and cost savings in the long run.
If you need help communicating or managing through these times, reach out to us.
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