img

Thursday, 22 October 2020 10:09

Time for your Organization to Hire, Fire, Coach or Sell

Written by
Rate this item
(0 votes)

Does your 2021 business plan have you headed for a sandy beach or a sand trap?

Know where your organization is going in 2021 and have a plan on how to get there.

2020 Success Stories from FullHR

Our team was proud to assist clients in surviving the numerous business challenges encountered in 2020, from COVID furloughs to business interruptions, via our professional Payroll, Business, Benefits, Human Resources Off-Boarding, and now On-Boarding assistance. Through guidance with PPP loans, our efforts facilitated millions of dollars to support long-term clients and their employees through a challenging season.

Collectively we helped three COVID affected businesses experience GROWTH during the economic downturn, whereas recently as March one was downsizing and two were preparing to close.

In this last quarter, is it time for Employee Performance Reviews, or for you to implement your organization’s exit strategy?

In the final stretch of the year, we recommend that small and mid-sized businesses review the following:

Is now the time to sell your organization and leverage rising interest rates from 2021 hyperinflation as a result of higher taxes, additional compliance restrictions, and significantly increased labor expenses? With high inflation predicted you may be able to take the funds from your organization and have a more healthy return on your money than continuing to run your business at a loss or possibly suffer its closure due to the upcoming volatile conditions. This may permit your leadership to weather the storm, then restart in three to five years.

Should non-profitable employees be terminated to minimize losses and stabilize profit? Owners need to evaluate both employee performance and net profit impact to see which members to keep on the team, especially if downsizing appears imminent to remain at break-even or better. Performance management is the most essential, as the lifeblood of your company is your people, and to survive this unpredictable season it’s crucial to retain the employees with higher potential and production.

Is there a reason for your organization to hire as we predict increasing unemployment among highly talented individuals who may accept significantly lower wages during this slowdown?

Are your vendors still the best match for supporting your organization’s mission? Evaluate the performance of your vendors to see which ones should be retained as business taxes swell, wages increase, and net profit may change to net loss. Vendors need to be assessed to see if there are better alternatives, not just lower costs but also opportunities to enhance your net profit by outsourcing. Are there integrated solutions to simplify your current process?

What if things get better?

  • If your organization is right-sized, it will have your core team assembled to execute a dynamic growth plan, in the event the 2021 economic conditions are more favorable than predicted.

Let FullHR’s licensed professionals fuel your success. Consider outsourcing your human resources, benefits, Pay-As-You-Go work comp, and payroll as an integrated solution to help your business survive during the coming economic and political disruption.

Read 803 times
Grammar Chic

Latest from Grammar Chic

More in this category: « Developing a Mental Health Strategy at Your Workplace 5 Things to Do After Open Enrollment »

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

back to top

Newsletter

img