Redundancies Can Cost
The first thing that inevitably arises in business when a recession looms is redundancies take place. Panic strikes as business directors consider ways to cut back on spending, but whatever happened to the saying, "two minds are better than one?" It seems an obvious strategy, fewer employees mean fewer monthly outgoings. This may not solely be as a result of redundancies but can be a cut back in staff replacements and fewer apprenticeships.
Whilst every business is different it is worth considering the negative effects staff cut-backs can have on your business. Trend Tracker (2009) investigated this in relation to levels of productivity and found that the absence of one technician, for example, reduces the productive capacity by 17%. As you can imagine, this is likely to be higher in the absence of salesmen on your forecourt because salaries are usually supported by commission incentives.
What is ironic is that reducing your staff levels can in fact end up costing you more. With an absence of employees, other members of the team typically have to work longer hours to make up the work. At this point there are two choices, pay them overtime and bonuses, for which you re not saving as much as perhaps intended, or get your staff to work harder at no extra cost, meaning staff morale may well be reduced causing lowered productivity again.
In uncertain times what is needed is a motivated, dedicated team that work together to find ways to overcome the recession and come out the other side stronger and as a result, more profitable. Redundancies can inevitably cause lowered productivity, lowered staff confidence, conflict, increased costs and importantly, fewer people working together to find ways to add value to the business.
One of the leading independent UK providers of cars on finance has proven that working as a team has a positive effect in any market condition. They adopted an approach that has meant the team are highly motivated and efficient, building a strong, profitable finance partner and has invested in its people.
It is unavoidable that times are difficult at present, but with a strong team and a new approach you could see outstanding results. After all, two minds really are better than one.
Buying new cars on finance can be a quick and convenient. Companies like Carlyle Finance can provide more information about car finance options.
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