How Do Companies Keep Their Teams Motivated and Loyal During a Recession?

Hello All,

I am a first-year MBA student aspiring to specialize in HR. In the course of my studies, I am doing an assignment on "Companies' strategies to motivate and retain manpower during a recession." I would appreciate it if any practicing HR managers could give me some real insights on the issue!

Thanks!

Hello,

All companies are currently operating under a sense of fear and uncertainty. Indian companies, in particular, have never truly experienced a significant recession, so thoughts of a recession should be put aside.

In the present situation:
1) Multinational corporations (MNCs) are concentrating on hiring experienced personnel to avoid the need for extensive training expenses.
2) Small-scale organizations are prioritizing hiring fresh graduates as they may not have the financial capability to offer high salaries to experienced individuals.

Hi Bhavit,

What you said about MNC's and Small Firms' recruiting strategies is true. What I'm concerned with is during a slowdown faced by a company, most companies look for layoffs as that is an easy way out to cut costs and improve margins. However, as an HR manager, layoffs are the last step to resort to, right?

So, what would be the retention strategies one can adopt to improve employee performance and also the motivational strategies to keep them pumped up and optimistic rather than being worked up about the recession and possible pink slips. Please help further...

Hi,

If a company is passing through its worst condition, then there won't be any other way for HR. However, if the company has a little chance for improvements, then they have to follow the given steps:

1) Provide a well-established environment for employees so that they can work freely and apply all their minds (don't try to instill fear like pink slips, etc.).
2) Conduct a test to determine how innovative your employees are.
3) Inspire all those innovative employees to work in the research field, as we don't know what great innovative ideas they may come up with.
4) Never demoralize your employees.
5) If increasing employee salaries is not possible, consider providing food coupons, medical allowances, etc.
6) Executives should seek help from experienced employees to navigate through critical situations.

These are a few suggestions. If you want more, I can provide you with a crisis management program conducted by my consultancy in various multinational organizations.

Hey Bhavit,

Thank you a million for your valuable feedback!

It would be wonderful if you could provide me with your crisis management program as a worst-case scenario program.

If I may ask, which consultancy are you working with?

Dear,

First, you need to understand that a recession cannot be the sole reason for motivating people. If employees are valuable and worth retaining, companies need to make it a routine practice as a strategic approach. The question of how to do this is where HR managers come into play.

On the other hand, if a company needs to strategize on motivating and retaining employees, especially during a recession, they must reevaluate their overall strategic framework from the very beginning.

Those companies that have already incorporated this approach into their original strategy do not need to make significant changes. However, those that have not done so will struggle to motivate and retain employees, regardless of the economic conditions, be it a recession or a boom.

Hi,

Instead of understanding crisis management, it is better to focus on the following points to motivate the employees. If you have any doubts, feel free to ask in this forum. Here are the points I am sending you:

1. Clearly communicate goals and expectations to employees.
2. Provide opportunities for growth and development.
3. Recognize and appreciate employees' hard work and contributions.
4. Encourage teamwork and collaboration among team members.
5. Foster a positive work environment that values diversity and inclusion.

I hope these points help in motivating your employees effectively. Let me know if you need further assistance.