Handling HR in a Recession
While unable to completely predict the future, the signs of an impending recession are all around us and call for increased awareness of the financial and psychological impact that can have on your practice and your team.
Fear of an uncertain future - Again, you can’t predict what will happen, but being transparent with employees about what you do know can help alleviate fears. If your practice is continuing to show solid performance, share that. If your office needs to tighten up on efficiency or patient collections, state those goals and develop a plan together.
Unseen employee hardships - Just because the practice is doing well doesn’t mean your employees’ financial lives are following the same trajectory. Check in with your staff regularly to see how they are doing and point them in the direction of helpful resources if they are struggling.
Layoffs - While you may be able to maintain your staffing level during a recession, you may decide to make changes. When making the decision to let someone go, consider how this will impact the entire team.
Could you reduce hours instead of a complete layoff?
Who will take up the extra workload when that staff member leaves?
Cutting benefits - When faced with financial uncertainty, many companies look to cut extra benefits to reduce costs. Carefully evaluate this choice, as these “non-essential” benefits can actually serve to lift morale and provide a feeling of connection. If absolutely necessary to cut back, communicate the reasons to team and look for low cost ways to continue to provide support and connection.
Check your emotions - Check in with yourself as the team leader to ensure that any stress in your life isn’t spreading - and encourage your team to do the same. Acknowledge that the future may be uncontrollable, but you can control your words and actions. Choose kindness and assume positive intent, even when you feel like a tornado is raging inside.
If you are a JNG Advisors client, please check in with us if you are considering any adjustments to benefits or staffing and we can help assist you in this process.