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Building Strength in a Weak Economy

Conventional wisdom tells us that hunkering down and weathering the storm is no way to manage in tough times.  To the bold go the spoils when the ship rights itself.

This can mean the ultimate difficult choice: letting people go. It can also mean a silver lining for your firm: bringing in new players who add strength where you need it.  There are, sadly, a lot of people looking for jobs, and there are probably people that your firm you can’t afford to keep or, given the perfect moment, they would rather not keep.

Trade Up

Some very skilled, high-priced talent is on the prowl—but without the high price. You can get top people today for less than top dollar.  So give some hard thought to every key middle-to-senior position in your firm. Can you replace a B-plus CPA with an A-plus player?  It’s likely you’ll find the perfect man or woman for the job—and save some money in the bargain.  And if your conscience nags at you for taking advantage of the bleak climate (mine would) think of it this way: 1) you can equalize things in the better days coming, and 2) the talent you’re bringing in will be instrumental in making those better days happen.

Trade Down

Equally, some very eager and absolutely cutting-edge young talent is also available. Most would rather take any job than go back to live with mom and dad.  They’ll bring the latest best practices along with them, including a tech-savviness that can be a real shot in the arm for your firm. 

Of course, Generation X-ers are known for a personality profile that hiring firms had best keep in mind.  They’re (very) confident; want responsibility and recognition now, have little time for the traditional gradual climb to the top.  If you can flex a bit to their tendencies, they will be valuable assets not just right away, but over time, as well—maybe even the change agents that help give your firm a future edge.  And, of course, if it’s a choice between a job with you for less than they want—and all the comforts of living with the parents again—you know who has the edge.

How do the above ramblings sit with you?  I have mixed emotions and I’m truly torn on the subject.  Bottom line is that this sort of trading up / down is starting to happen out there.  How do you feel about it?  Please post your comments and let me know. 

Posted by David Flax, CPA on June 15, 2009 • Email to a Friend

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