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.
