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Handling Your Most Important Asset

Written by: Marijo McCarthy

Article Overview: When the economy is slow, it's natural to think of all line items that cost your company money as liabilities. Unfortunately, that negates the value of one very large item in your budget which just may be your biggest asset: your employees. The question, therefore, is how best to manage that precious asset during uncertain and stressful times.

Handling Your Most Important Asset

When the economy is slow, it's natural to think of all line items that cost your company money as liabilities. Unfortunately, that negates the value of one very large item in your budget which just may be your biggest asset: your employees. The question, therefore, is how best to manage that precious asset during uncertain and stressful times.

If you, as the business owner, are worried, hunkered down in your office, avoiding the questions and concerns of your staff - who after all, are equally worried about mortgages, tuition bills and filling that black hole called the gas tank - the office atmosphere can quickly turn toxic. [Think: Dunder Mifflin and Michael Scott's style of management on NBC's The Office!]

Not surprisingly, anecdotal evidence suggests that more workers comp claims occur during recessions than during thriving economies. So, what's a small business owner to do?

Communicate with your employees regularly and honestly. They know when business is down, so there is no point in avoiding or whitewashing the truth. In fact, you will find that informed employees are far more likely to respond with common sense and a positive attitude. Make them part of the solution, instead of the problem, and they will appreciate it.

Include your employees in your decision-making and thank them often. Many small business owners have committed, loyal, long-term employees who make up a strong team in good times and bad. Leading that team is challenging in the best of times, but pays dividends during the worst of times for the employer who simply asks. That's right, ask your employees for some extra help, expense reduction ideas, business development suggestions, anything which will cement the team approach. Then, say thank you... often... and mean it.

Deal with layoffs... they are a fact of life. When small business owners find themselves confronted with a need to cut expenses, although it is always the last choice, that sometimes means looking at the employee roster and making layoffs.

This is a business decision fraught with potential pitfalls for the small business owner who has few professional resources on staff to guide him through this maze. Believe me, this is the time to call for help, and an employment lawyer, an HR consultant and other qualified professionals are worth their weight in gold to manage this as sensitively and litigation-defensively as possible. Also, if you need to reduce the payroll, check out the Commonwealth of Massachusetts' "WorkSharing" program. It might be a benefit which could help you and your employees.

In the final analysis, small business owners have a closer, more human relationship with their employees than do large, impersonal corporations. It therefore stands to reason that putting that relationship-building foundation to work in tough times will earn kudos and loyalty from your employees and add value to the human resource assets that they truly are as the economy climbs out of its slump. A win-win outcome for employers and employees!

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Article Tags: budget, company money, economy, liabilities, payroll, precious asset, stressful times, work share



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