Questco can help during a Recession

As unemployment in Texas continues to rise many businesses will and have already succumb to the pressures of sustaining workforce costs amidst diminishing revenues.  More than 75 percent of employers manage during a recession by cutting out holiday bonuses, scaling back on wage increases or conducting layoffs.

Companies committed to surviving a recession have an obligation to their employees. Their human resources departments play an integral role in reassuring employees about matters such as job security, earnings and the company's strategic direction.

Questco partners with companies to reduce and solve problems in the areas of human resources, workers comp, risk management, employee benefits and payroll.

Through this partnership companies see an Increase Profitability, Maximization of Productivity, Reduction of Liability and time spend on transactional HR and affords them the ability of Providing Fortune 500 Benefits that otherwise they would not have access too.

The role of HR is to build employees' trust in leadership through honest, effective and frequent communication, regardless of the circumstances. One of the reasons employees report leaving their jobs is that they lose trust in company leadership.  When HR or company leadership neglects communication, the result is that employers risk their employees losing confidence in them. During a recession, it's all that more important to communicate and build employees' trust.

If the company is recession-proof, meaning it provides necessary products or services, the role of HR is to remind employees that the company is forging ahead despite an economic meltdown. As the saying goes, the only sure things in life are death and taxes; therefore, the most recession-proof businesses are likely mortuaries and accounting firms. On the other hand, if the company will be affected by a recession, HR's role is to assist company leaders in describing the business strategy for staying afloat and keeping employees apprised of the company's status and direction.

The unknown is frightening.  When your company partners with Questco you’re choosing to work with a human resources partner that isn’t just outstanding based on its own opinion–but objectively rated by the most brutally-objective evaluators – the satisfaction of their customers.  Your business has thrived because you and your team have been committed to the success of your customers. As your business grows or faces the task of rebuilding, the complexity and burden grows as well. Keeping up with HR responsibilities can become expensive, time-consuming, and even overwhelming.

During a recession, employers may be inclined to offer overtime hours instead of hiring new workers. The cost-benefit factor is that hiring new employees costs more money than paying overtime wages to current employees. Therefore, some employees may welcome the opportunity to increase their paychecks. In either case, HR's role is to assure employees that their jobs are safe. If employees' jobs are at stake, HR should explain what process the company will use to notify employees of layoffs, whether they will receive severance or early retirement opportunities and the timing of potential layoffs.

An estimated 40 percent of employees live paycheck to paycheck, according to Best. The minute people in this situation hear they are losing their job, anxiety about bills sets in. Questco can help by offering a prepared list of resources for the unemployed.  During a recession, employees' pay might not go as far as it would during an economic recovery. Therefore, HR should provide employees with options for increasing their take-home pay. Options might include adjusting withholding allowances, reducing contributions to their savings accounts or re-evaluating their health plan choices. HR also should counsel employees on additional ways to reduce payroll deductions, such as suspending payroll deductions that some employees elect to donate to charitable foundations.

The good news is that things will get better.  When they do, Questco is there to help you rebuild your labor force through a plethora of HR Services such as: Payroll Services, Benefit Plans, Benefits Administration, HR Technology and Workers’ Comp & Safety Services.

Charlie Reeves, Senior Business Development Manager, has decades of experience in Human Resource Solutions.  He is one of the most senior members at Questco and recognized for helping clients of all sizes save money, improve labor efficiency and provide the strongest support for HR Services.  As an entrepreneurs himself, he has lived the long days and sleepless nights on the road to success.  He brings the skill and scale to support you in the pursuit of your goals.  For more information on payroll services, benefit plans, benefits administration, HR technology, workers’ comp and safety services email Charlie.Reeves@questco.net or contact him directly at 936.521.5841.