Discover a full-proof strategy to help recession-proof your business and navigate uncertainties.
It’s been a few rocky years for small businesses. Those that survived the COVID-19 pandemic likely did so by taking out loans that were either forgiven (yea) or coming due (uhm). Now, with numerous geopolitical concerns, inflation rising across the board, and high interest rates slowing lending, consumers are spending less, and small businesses continue to struggle.
When times are tough, the ability to adapt quickly is a significant advantage that small businesses have.
“Nimbleness is truly the core feature of any small business,” said Elizabeth Eiss, Founder and CEO of the talent curation and freelance recruiting platform ResultsResourcing. “An agile company can quickly adapt to prevailing circumstances, stay close to their customers, and manage changes in the business environment to survive and thrive.
“One of the best strategies a company can adopt to recession-proof their business is an agile talent strategy.”
Most companies spend between 15 and 30 percent of gross revenue on payroll expenses. When the economy is stable, and cash flow is predictable, it is easy to maintain this payroll percentage. However, when cash flow becomes unpredictable, this percentage can quickly fluctuate to unprofitable levels. This leads to employee pay cuts and layoffs, meaning essential services suffer and valuable employees may be lost forever.
However, small businesses can stabilize their payroll percentage by adopting an agile talent strategy. This powerful, yet simple concept enables companies to quickly and easily scale up and down as needed, which keeps payroll costs steady and predictable.
“An agile talent strategy is a deliberate shift to incorporate talent that is deployed on a flexible basis. Companies often use this approach as a way to complement and augment full-time staff, gain specialized skills, or get short-term support. During times of uncertainty, it provides flexibility.” said Eiss.
“An agile, variable, hybrid cost model can combine full-time, part-time, and contract workers, as well as onsite and remote roles. We say that an agile talent strategy enables small businesses to ‘access’ talent instead of ‘acquiring’ it in the traditional parlance – and also because talent has a say in the matter. People choose to work with an employer, rather than be “acquired.”
The first step when shifting to an agile talent strategy is clearly identifying a company's core value proposition. What will customers continue to pay for during these unsure times?
Next, focus your small business around that core value. That is accomplished by identifying a company’s core and non-core roles.
With an agile talent strategy, freelance professionals can staff non-core roles on an as-needed basis creating more flexibility for business owners.
“Small businesses with poorly defined core and non-core roles are at a competitive disadvantage because they lack the clarity of their more agile peers to delegate work to flexible professionals,” said Eiss. “By transitioning non-core tasks to contract professionals, small businesses can leverage highly skilled talent without making a full-time hiring commitment.”
Discover how to recession-proof your small business by shifting to an agile talent strategy. Click below to schedule a free, no-obligation 30-minute chat to learn more.
ResultsResourcing merges tried and true traditional staffing approaches with everything great about online job board platforms to find your best-matched virtual freelancer. And with our Recruiter Package, your success is guaranteed!
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