Are We Headed for a Recession?
The jury’s still out on that one.
Economists have forecast mixed projections about the fate of economic markets in 2023. Some say a slowdown doesn’t mean a heavy financial crash is imminent, others say we could be on the road to a major financial crisis, the likes of which haven’t been seen since the 1960s.
And recent mass layoffs in sectors like tech and media don’t help. Only 20 days into January 2023 and the tech sector cut a whopping 31,000 jobs! Recession or not, mass layoffs are not the sign of a stable economy.
Fortunately, there are some strategies you can use to proactively help your company weather the storm.
Keep reading to see how you can build and maintain a recession-proof workforce.
Treat All Your Workers Like Key Players
At Borderless, we take pride in pairing you up with the best freelancers, contractors, and employees worldwide. No matter which of those roles a worker may occupy within your company, get in the habit of treating each member of your team like gold.
Workers that feel valued and heard will be likely to do everything in their power to weather the economic storm of a transition or downturn with you. If your team feels like you as an employer are on their side, you’ll see more company loyalty and more workplace motivation.
Cut (and Hire) Smarter, Not Harder
Arbitrary and drastic job cuts in the short term can do more harm than good in the long run. As you consider cuts and layoffs, be mindful of the long-term outcome you want for your business.
Layoffs mean lower productivity (leading to lower profits). What’s worse, you risk burning out high-performers that you want to hold onto by making them each work the jobs of two people.
Think Outside the Box
Inventive ways of cutting costs, rather than mass layoffs, could be the solution your business needs long-term. Consider things like lower executive salaries, shopping around for more cost-efficient office supplies, and downsizing office spaces.
If you are in a position to hire, try thinking outside the box (or your country!). Hiring global team members is a great way to bring in fresh perspectives, and access a larger pool of talent. At Borderless, we work to help you hire contractors and employees in 150+ countries.
Because of global wealth disparities, you pay more to hire from wealthy countries like the U.S. or Canada. If you’re creative and open to looking beyond your borders, you’ll find the talent pools of emerging markets are just as strong and can help you stay cost-efficient on major company undertakings and high-stakes projects.
Stay Ready, Don’t Get Ready
The best time to prepare for a recession is when you’re not in one! During times of prosperity, remember to get smart and be proactive about how you spend your company cash. Yes, if you have a little extra money to burn, you can invest more in things like employee perks or upgraded marketing strategies. But before fun business add-ons, it’s important to first make sure all the cogs in your machine are working in the most efficient way possible.
Automate
Always be on the lookout for ways that you can automate aspects of your business that you hadn’t thought of before. Automation shouldn’t be a way to undercut your employees, but a way to outsource so your team has more time and mental space to be productive and innovative.
How Can Borderless Help?
At Borderless, we believe workplace transitions should be easy. Experiencing economic downturns and challenging company transitions is fun for no one. But if you maintain a flexible approach to hiring, you’ll set your team up to come out on top.
Borderless can help you stay on top of global payroll, compliance, and keeping your business taxes in order. Book a demo with us today to bring the Borderless experience to your team.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
