Employment dispute in Christchurch where a business faced consequences for dismissing an employee before their start date, resulting in an $18.5K payout.
Published 31 January 2023 | 2 min read
As the news of another impending recession spreads, I'm reminded of a friend who owned a small business in Auckland, New Zealand during the Great Recession of the late 2000s. They faced the reality of declining demand, reduced profits, and high employee turnover. It was a difficult time, and they struggled to find a solution.
As the recession worsened, they saw competitors closing their doors, and the stress of running a business took a toll on both the owner and the employees. The high turnover rate was a constant concern, and they felt helpless in finding a solution.
In reflecting on my friend's experience, I've come to understand the importance of company culture during an economic downturn. A positive and supportive work environment can help retain employees, improve morale, and increase productivity, even in the midst of a recession. This new perspective offers a promising solution to the challenges faced by small business owners in New Zealand.
Investing in company culture has long-term benefits that extend beyond the current economic downturn. A strong company culture can reduce turnover, improve employee engagement, and foster innovation, which can help a business thrive in the future.
To prepare for the incoming recession and reduce turnover, small business owners in New Zealand can take the following steps:
1. Communication
Open and honest communication with employees about the future of the business and the potential impact of the recession can help to ease concerns and build trust.
2. Cost-cutting
Reviewing expenses and finding ways to reduce costs without affecting the quality of products or services can help a business stay afloat during a recession.
3. Employee engagement
Focusing on keeping employees motivated and engaged through professional development opportunities, career advancement, and a positive company culture can help to reduce turnover.
4. Culture investment
Investing in company culture by hosting team-building activities, recognizing employee achievements, and promoting a positive work-life balance can improve morale and increase productivity.
By following these steps, small business owners in New Zealand can prepare for the incoming recession and reduce turnover. Investing in company culture can not only help weather the storm but also set a business up for long-term success.
Key Takeaway
Preparing for a recession and reducing turnover requires a combination of proactive financial measures and investment in company culture. By focusing on both, small business owners in New Zealand can not only reduce turnover but also improve employee engagement, customer satisfaction, and overall business success, even in the midst of an economic downturn.