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  • Siti Zaidah Binti Abdullah

    January 28, 2022 at 7:11 am

    During times of crisis, such as the COVID-19 pandemic, significant managerial challenges have emerged, including hiring freezes and layoffs, salary freezes, canceled bonuses, pay reductions, changes in the way work is done (for example, working from home), and increased worker stress and burnout, among other things.

    The less vulnerable a company is to dangers or unanticipated occurrences, the stronger it is. Financial management isn’t the only way to improve the company. To maintain and expand the consumer base, keep employee morale high, and enhance the company processes are all included in this guide. Seeking opportunities to network and form partnerships can help the company reduce its risk exposure.Consider the following ideas to help companies during an economic slowdown.

    1. For customer service, it’s all about meeting the client’s expectations and exceeding them. If you give good service, customers are more inclined to stick with your company. So you’ll be able to maintain and grow your current clientele more easily. Adapting your company to new markets, goods, and services may be part of this. Maintaining client satisfaction during an economic recession may include maintaining customer reward or loyalty programmes, adjusting the items or services you provide, and diversifying your firm to minimize the impact of a big customer’s departure. The need for delivering excellent post-sale customer service becomes even more apparent when the economy is in a slump.

    2. Taking a fresh look at your marketing tactics might help you generate new ideas for growing your business and make better use of your advertising budget. Your competitive advantage should be the focus of your marketing efforts. It is important that your unique selling proposition (USP) helps you stand out from the competition. Along with this, you must devise methods for gauging the success of your marketing campaigns. The cost of promoting your company may be prohibitive, which is why it’s critical to take advantage of the many low-cost options accessible to you, such as social media and word-of-mouth marketing.

    3. Check to see whether your HR strategy is up-to-date. To appropriately price your items or services, you should use your plan to describe your workforce expenses. Motivate and energize your employees by letting them know what’s going on at work. Let them help you make decisions and come up with solutions. Changes in the workforce may be necessary during an economic slump. Reduce the number of hours worked if you can (e.g. you could ask some of your full-time staff to work a 4-day week, or use job-sharing arrangements). If you have to let some employees go in order to save money, make sure you are aware of your legal responsibilities in the termination process. Your staff might also be trained for additional jobs. You may perform a staff skills evaluation in order to determine what training your employees may require.

    4. During a downturn in the economy, it might be helpful to learn from the experiences of other firms. Your firm may also reap the benefits of a wide range of new customers, suppliers, and business partners. You may want to build partnerships with other firms, such as by giving complementary services or discounts.

    5. You may be able to react to changing market circumstances and remain ahead of your competition by developing creative methods. As part of this process, you should examine whether or not employing technology can boost productivity, cut expenses, and make your firm more competitive, for example, by establishing a customer management system or doing business on the Internet.

    6. For assistance in weathering a financial crisis, engage a financial advisor or other business experts like accountants and consultants.