While predicting the timing of a recession can be difficult, great companies get stronger in times of uncertainty and embrace being nimble and adaptable. They are quick to pivot strategies, innovate, and adapt to changing market conditions. These companies learn how to gain more customers and talented employees from competitors.
Great companies are also fiscally responsible, understand the importance of having a strong balance sheet, and managing finances wisely. During tough economic times, they are able to weather the storm because they have taken the necessary precautions to ensure financial stability. Here are the ways your health care staffing company can prepare for a recession:
Secure Financing Before You Need It: Throughout the course of a recession, staffing companies may need to ask for financial help, even if it’s expensive. Don’t think of this as a sign of failure. Instead, try to get ahead of the curve by securing financing before you need it. You’re much more likely to be approved for a business line of credit when your company profits are going well, so do what you can to qualify.
Reduce Unnecessary Expenses: One of the best ways to prepare your business for a recession is to carefully examine your expenses. As early as possible, look for any areas where business expenses can be reduced. Reviewing your Medical Liability and Employee Health & Benefits insurance can reduce your expenses and streamline the administration burden, resulting in significant savings.
Engage Recruiters for Opportunities: Recruiters are heavily integrated in the front-line operations of your business. This means they’re often first to run across emerging opportunities or recognizing potential threats. Consider turning to them for ideas that could lead to fueling growth for the future. Every recession presents a unique opportunity for staffing agencies to expand and diversify their offerings.
Offer Financial Tools to Employees: While it’s unlikely that small businesses entering a recession may be able to provide further financial help to their workforce, resources and guidance can go a long way. Some employers offer financial tools as a part of their benefits and wellness offerings, such as retirement or 401(k). If your company has this type of assistance available, tell your employees how to access it. These are often overlooked resources that you can promote to your employees.
Leverage Technology for Efficiency: National demand for travel nurses increased by more than five-fold during the first wave of the COVID-19 pandemic requiring new operational strategies and technology that could scale with the increased job volume. Explore the marketplace to ensure your firm has the best tools in place to support recruiters and reduce redundancy in their roles.
Hard economic times is inevitable, but it is important how your company prepares and adapt to these pivots that can create a stronger workforce. Contact your Marsh McLennan Agency advisor to discuss more ways to prepare and navigate your health care staffing company during a recession.