The United States has been in a recession that started in December 2007. Nearly every business has been affected. Most management has made extremely difficult decisions to attempt to survive.
During previous recessions management would cut support staff by 10 to 15 percent and reduce production workers to match customer product demand. This was not all bad, because it forced companies to trim out the least value added management and support staff. Unemployment would go up to 8 to 10% and productivity would go down or improve slightly. When business picked up companies would call back their production workers and over time add management as needed to support their business activities.
This recession has been very different. Some companies have reduced their support management and staff by 40 to 80 percent in addition to their production workers. U.S. unemployment is at 10.2% and climbing, but productivity has increased by 9%. Increased productivity is great when competing in our world marketplace. However, many believe that unemployment will remain high during this recovery, which will negatively affect the time it takes for the U.S. to come out of this recession.
Management must walk the fine line on how to staff their organizations to deliver high quality products on time at low costs. They must also meet non product customer requirements, which require staff time. One should analyze the long term cost and benefits before adding fulltime management staff.
Hiring options to meet increased demand on management’s time:
1. Part time (does not require benefits)
2. Temporary staff – (Some benefits are included in contract)
3. Contact people who have experience and specialized knowledge for projects (short term, no benefits, quick start up, high productivity)
4. Fulltime employee (training required, available for other assignments, benefits and legacy costs)
Lean Enterprise Software Solutions has a number of talented individuals that have the experience to assist companies improve in many areas to compete in this world marketplace and contribute to your company’s profitability. Many of our associates will require no upfront money commitment, but are willing to work for a contracted percentage basis of the project cost savings.
Visit our website and discover what many other companies already know: www.leanculturenow.com