Currently we have 3 types of companies:
- Companies that are experiencing tumultuous growth in the current situation while facing a shortage of employees
- Companies facing a shortage of employees, orders remain the same
- Companies facing a shortage of orders, limited activity or having to temporarily suspend it
The fourth type could be a company that is not affected by the current situation. However, I believe that there is no such thing at the moment. At the very least, even companies that hold steady performance and have enough people have to change their approach to employee safety, addressing the current increased sickness or demotivation of people caused by environmental influences.
What needs arise from the current situation for each type of company?
1. Stormy growth
Although this is a positive change in the market, the company is entering crisis mode, with the risk of being unable to meet business commitments, high turnover and a lack of capacity. Part of the crisis mode is clearly a revision of the current 7S (source: McKinsey).
In a phase of “turbulent growth”, it is necessary to create a new company strategy and ensure that each individual employee understands the direction of the company. This is of course closely related to clear, understandable, open communication. Changing the company’s strategy brings with it other key drivers of change – a change in organisational structure, a change in leadership style, internal systems, recruitment policy and a change in the development of key knowledge and skills. Changing the organisational structure With high staff growth, there is a need to add another level of management and more specialised positions. This is also related to the change in management style, which requires the effective development of employees promoted to the role of a manager, or they have been added other duties. The success of change is built on the quality of their ability to lead, communicate, train people and improve. Changing internal systems and leadership styles Recruiting quickly and effectively, using modern HR marketing methods including sourcing. A necessary condition is also the determination of the necessary number of employees, their structure and requirements for their competences. The significant increase in employees is also related to a change in the adaptation process (so-called onboarding), when fast, high-quality and effective training of new employees is crucial. In addition to the risk of poor quality, accidents and high turnover, the tumultuous increase in employees also carries the risk of overloading the internal system in the HR department and frustration of managers at a lower level of management. The ability to automate and digitize is now a very topical topic, and in the field of recruitment and adaptation, its return is immediate. Another key internal system that needs to change is the reward and motivation system. A company growing needs to have the ability to flexibly respond to the needs of the company, to a change in strategy and current market events. Outdated and dysfunctional remuneration systems not only fail to motivate employees to perform or produce quality work, but also place a huge burden on line managers, the HR department and the company’s budget.
2. Lack of people
A topic current before the corona crisis and today. By worsening the conditions for the so-called. foreign agency workers, the increase in demand for new people in companies in growth and the increased risk of illness / quarantine, the topic of recruitment has become the most frequently discussed by HR specialists. So if we look at the 7S quoted above, it will also be valid in this case, just from a different perspective: Change of strategy In this case, it is necessary to change the recruitment strategy and the so-called. Employer branding. Fast and effective recruitment, the use of modern methods of personnel marketing, including the search for new resources, and the automation of the recruitment and adaptation process are essential to ensure competitiveness on the labour market. Change of internal systems Personnel-process audit with the aim of streamlining processes, elimination of all redundant activities, effective use of each employee, maximum use of competences – change of tasks, job positions. Standardization and continuous improvement is the key to successfully managing the current situation. This is also related to the analysis of the current remuneration system and the revision of incentive instruments. Changing the leadership style and people skills In a situation where we are short of people, it is important to involve all employees in achieving the objectives. Effective management, agile approach, creation of so-called. microteams and their ability to effectively solve problems will bring a quick effect. Rethinking current competencies, expanding people’s capabilities, and increasing fungibility will bring stability to society and manage the crisis.
3. Stormy Slump
Companies that are facing a lack of orders, have limited activity or have had to temporarily suspend activity are in full crisis mode. The first parameter is the so-called 5C crisis protection (source: Deloitte): the first absolutely crucial step is to set up crisis management – i.e. management of finances, costs, customers and people. The intensity of managerial steps and decision-making increases. A crisis team is being set up, crisis communication is being set up. Another important step is the review of the company’s strategy and the planning of various scenarios with the calculation of the impact on the economy. The ability to predict possible risks is absolutely crucial in this case. The area of cost reduction and management is very often an uncontrolled activity. Costs are often reduced, which have a very low impact on the overall result and often a very negative impact on people’s performance. How to keep motivated employees in times of order downturn is a critical question for the management of all companies. Personnel and process audit with the aim of examining the company’s processes, excluding all unnecessary activities, determining the needs of the number of employees and their competencies in various scenarios is functional and contributes quickly to the management of the crisis situation. This activity is closely related to a change in leadership style, a change in management’s approach to people, and very well-managed communication. Employee development taking into account the new process design (internal retraining) can be of greater benefit than mass layoffs. Search for non-traditional methods for savings, eg. the way of temporary assignment of employees to another employer can be an immediate and short-term solution. Although it is possible to draw assistance from state support – antivirus – there is a long-term high risk that employees on obstacles of 60% – 80% will start looking for employment with a stable employer or in growth. However, managing and reducing staff costs is critical during this period. Analysis or change of the system of remuneration and motivation, analysis of benefits and their effectiveness, internal retraining and concurrence of activities can bring a significant result. All three types of companies are going through a challenging period of crisis management and change, in addition, the increased frequency of forced work at home office, the restriction of social contacts and the increase in problems in people’s privacy bring frustration, demotivation and a negative atmosphere to society.
