As the recovery slows, optimism is giving way to caution, with undercurrents of something darker, or so some may say. Economic forecasts are coming down all over Wall Street: Goldman Sachs and Deutsche Bank both cut forecasts of second-quarter growth to just over 1%. Companies from chipmaker Intel to Morgan Stanley have missed or lowered earnings forecasts … 99 companies in the Standard & Poor’s 500 lowered second-quarter projections.
What happens to jobs and job hiring when companies are skeptical about the future?
They don’t hire. They find a way to get it done with less. They protect their expenses (aka capital spending) and hunker down … hoping to modestly grow, managing their shareholder’s expectations of growth. That is just how business is done. It is a wise, prudent stance in the face of uncertainty.
Nearly half of corporate economists expect their companies’ capital spending to stay the same over the next 12 months, according to a survey by the National Association of Business Economists. Only one in eight think it will climb 10%.
Everyone is in a “pause mode.” A wait & see moment. With this being an election year … many things are up in the air for decision makers.
Here are some questions we get asked at eaHELP … by organizations that are looking for admin help/advice:
1) What’s a company to do, when they have administrative needs (that usually account for a company’s 25% of wages) … and an unwillingness to hire internally?
2) How do you prioritize your administrative needs?
3) How do we make our employees more efficient and productive?
4) What tools are you seeing, that work well, in managing admin tasks, needs, projects?
5) How can I reduce costs tied to headcount without cutting so much that balls start dropping?
6) How can a virtual employee actually be more productive than an on-site employee?
These questions, among many more … are the types of questions we answer for business & organizational leaders each and every day. The economy is forcing leaders to critically think through these sort of questions. And, by the looks of the forecasts, these questions will be around for a while longer.
QUESTION: Has your organization been hit hard by the economy? If yes, what question(s) did you ask to help you come to a good decision with your staffing/admin needs?