Sack your Staff and Survive the Recession

Let’s face it, the recession is killing off major companies left, right and centre and there’s plenty of smaller companies going down too. The question is, what are you willing to do in order to save your company from going under? What does it take to survive the recession?

Image Credit - Ben Salter       Image Source – Ben Salter (CC License)

Of course, you could always take a salary cut yourself, or move to smaller premises, and liquidate some of your hard earned assets. Could you afford to lower your marketing spend? Can you find cheaper suppliers? These are all possible, but not realistic choices for survival.

Where do you find the biggest costs? Almost certainly, they are people costs, they are the salaries of your staff. Of course you want to protect these loyal employees but it’s the most obvious place to start cutting your costs. Why? Because it’s better to cut permanent staff now and re-hire when the recession lifts than to struggle on until you can no longer afford to even keep your business running. In other words, you need to cut staff in order to stay buoyant. It’s a tough decision, but it makes sense to stay afloat.

But hold up, how are you supposed to defeat the recession if you don’t have any staff? Simple, do what the recession-proof companies are doing, they’re outsourcing. Outsourced staff are cheaper, more flexible and they’re not your responsibility. Does this sound callous? No, it’s a realistic sign of the times. It’s important to take decisive and unpopular steps if you want your business to survive.

In the long term, this could be smartest decision you ever made. Why? Because loyalty to your staff cannot and must not come at the cost of your business. It won’t be easy, we’re not saying it’s the ideal choice, but it is an option that you must consider. Outsourcing some of your staff could save your company much needed funds and still deliver the same quality of results.

When you outsource your telemarketing staff, you not only outsource the human costs, but also many of the equipment and technical costs. That’s two savings made for the loss of each permanent staff member. Don’t forget that permanent members of staff are also entitled to paid holiday and pension contributions, not to mention employer’s national insurance, those costs keep creeping up. If you’re willing to save your business at the price of your popularity, you can save enough money to get you through this tough economic period without losing your much-needed productivity.

Even successful companies such as television producer Channel 5 have made one in four of their staff redundant. Do you think that they’re going to allow it to affect the quality of their output? No way! They know that they can outsource those jobs and get more for their money. Outsourcing is the only realistic and effective way to ensure business security and a future for your company during this recession.

It’s not an easy decision, but it’s the smart decision.

 


Andy Dickens

Andy Dickens is a veteran of IT Sales, used to leading by example. He is the CEO of Virtual Sales Limited (VSL) who offer telesales, telemarketing, lead generation and appointment setting services to B2b businesses. He previously was Sales Director EMEA for Red Hat and before that ran sales at Visio before it was acquired by Microsoft.

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