Sunday, September 11, 2016 11.56AM / Taiwo Ologbon-Ori
During recession, economic hardship will bite harder on both employers and employees, the search for alternatives becomes priorities for both parties- this signifies the period of reorganising, readjusting and repositioning to survive the new economic realities that are evolving.
Usually, downsizing or right-sizing is the option mostly considered- just to cut cost on the part of employers, as we had seen in the banking sub-sector recently. Well above 1,000 jobs had already been lost in the banking sub-sector in the anticipation of recession.
Now that the economy is officially in recession, the pattern may spread across key sectors in no time, particularly the manufacturing, industrial and oil and gas sectors. The continued pressure of dollar scarcity and low oil price has been highlighted as likely key drivers in the above listed sub-sectors.
On the part of employees, the urge to survive with less income may spring up as the impact of growing inflation bite harder. How this plays out for both parties depends on how prepared they are, options and resources available, how deep and long the recession may last and the speed of FG in taking bold steps and tough decisions.
For both employer and employee, this is a time of sacrifice and moderate 'hair cut' from both parties to maintain the relationship. This article is a follow-up to our previous write-ups on recession, it would explore and relate other productive alternatives available for employers and employees during recession.
In recent discussion with my first employer (an experienced management consultant) on impending recession, he was able to relate that lay-off is not among options available to his company at the moment, though, he was very certain about drastic readjustment and moderate hair-cut across board. His focus is on how the company and staff would survive the recession without unbearable pain that would strain the relationship- in his words, it’s a new give-and-take time. Everybody including my very self must be ready to make sacrifice to keep our jobs and healthcare intact during this self-inflicted hardship; it is a big sacrifice i knew i need to make to keep the brand intact for now. As an employer, below are some of the key cost-cutting suggestions, alternatives and options he shared with me during the chat.
Employers should deploy cost-cutting not staff-cutting measures like
Employees should be more creative and should deploy job-saving approach
While we remain committed to keep a date with you on periodic personal finance articles on, we would appreciate your feedbacks and like to encourage you to share your experience with us on survival, options taken and what more would like to know.