How to Increase Employee Productivity During a Recession?
Updated on September 22nd, 2023
Times are hard, and numerous companies are feeling the pinch. I was really surprised when I heard of layoffs happening in top organisations as a part of the recession. Amazon, Meta, Google and Microsoft are some of the prominent companies undergoing a hiring freeze and layoff in 2022 & 2023. So, the first thought that struck my mind when I heard about this news was regarding increasing productivity during this tough time.
As a matter of fact, there is no room for the talk that the economic downturn is having an impact on employee performance. However, it is essential for every firm to maintain employee productivity in these times. There are ways to boost employee performance, including using time tracking software, fostering a positive work environment, providing opportunities for training and development, and more.
This article will spill some beans about increasing employee productivity during the recession. Stay tuned!
Top Companies Layoff in 2023
The recession has prompted several layoffs, which has sent a shiver down the spine of many employees. The pandemic has already raised challenges for employees, and the added stress of layoffs has made the crisis even more challenging for them.
Here is a list of some of the top companies that have announced layoffs in 2022 & 2023.
Meta:
It is the parent company of Instagram , Facebook and Whatsapp. The acceleration in tech businesses brought on by the pandemic resulted in them terminating more than 13% (11,000) of their workforce in 2022.
Here is a snippet from Mark Zuckerberg’s message to Meta employees during Layoff:
Twitter:
They fired almost 7000 workers under Elon Musk, their new owner, because they couldn’t withstand the recession and internal issues. We aren’t really sure if the recession has actually affected them or not 😛
Amazon:
During its record-breaking sales boom, this large tech organisation has already let go of about 10,000 staff mentioning job cuts as the main cause of employee layoffs. Big Billion sales in front door, layoff in backdoor 😐
Microsoft:
Nearly 10,000 employees are on the verge of lay off, mostly due to structural changes brought on by recessionary fears. The cuts exceed the 1% reduction in Microsoft’s workforce from last year.
Google:
The tech giant has recently announced the layoff of about 12,000 employees as part of its restructuring process. They have also declared that impacted workers will be assisted with benefits and other perks.
Byjus:
The firm laid off around 5% of its employees as of 2023. But, to support employees in seeking new possibilities, the business offered financial assistance, career guidance & outplacement services.
The recent Forbes report sheds light on the widespread layoffs carried out by some of the most notable companies in different sectors. The report also provides insights & analysis of the situation and its economic consequences.
What Happens to Productivity During a Recession?
Have you ever run your mind across the thought of what happens in a recession?
In these times, there will be financial difficulties, low sales by businesses, job losses, and a fall in the nation’s output. Further, many firms worry about employee productivity during recessions.
Well, the reason for this is clear. Being unproductive during these challenging days can play a significant role in the declining overall performance of the company.
I am pretty sure that you are now wondering if productivity increases during a recession.
Let me make it clear.
It is worth noting that there are opportunities for employee productivity to rise or fall during these days. Hence, employers need to inform their employees of the situation and avoid unnecessary fear in managing employees in an economic downturn.
In these times, most employees are prepared and able to step up and contribute. Nevertheless, employees generally become less productive because they are in a panicked situation.
Causes of Decreased Employee Productivity
Low employee productivity can happen for various reasons, from personal concerns to workplace issues. Some of the most common causes of decreased employee performance include poor working conditions, stress due to workload, and lack of training or support. This will for sure result in low employee productivity, thereby resulting in recession.
Anyways, let us all agree to the fact that we might have heard of all these situations from our dear or near ones.
But, do you think it is easy for an employee to work under these circumstances?
The answer is simple, not at all. That’s when a company must come forward to take measures to level up employee productivity.
Okay, without beating around the bush, let me reveal some effective solutions to tackle the issues
Want to try our Time Tracking Software? Try Desklog for free!
Solutions to Increase Employee Productivity
Employee productivity is a significant factor in any company’s success because workers are the most valuable resource. It is no wonder that without employee productivity, a firm cannot sustain whether they are going through an economic downturn.
It is evident that productivity-tracking software is helpful during an economic downturn.
For instance; employee productivity will increase with productivity tracking software like Desklog. Automated time tracking, detailed productivity reports, absence calendar and timesheet management are some of the features of Desklog’s productivity tracking software that helps to soar productivity.
I have found this as the best productivity tracking software as it has helped me to boost my productivity in real-time after using it. Thus, this enabled me to manage my time effectively, as it has an excellent time-tracking system.
Effective Shift Management:
A well-executed shift management will improve employee workflow. Further, this will help the firms to utilise employee productivity to the maximum level.
Automated Project Management:
This will provide employees with freedom, resource, and time to concentrate less on manual tasks and more on tech, strategy, and innovation to manage your projects effectively.There are many free project management softwares like Desklog Project, which can help you for automated project time tracking.
Furthermore, this feature is useful for assigning tasks and monitoring the execution of the project.
Quality Over Quantity:
When works are enriched with quality, they offer better products and results. Hence, when quality enhances, it will result in high productivity.
The employee quantity decreases when there are layoffs and hiring freezes. Thus, employee quality can be maintained if the existing employees are performing in their best way.
Needless to say, the 2023 global recession is making our life hard. But don’t you think we should sail through these difficulties?
Yes, for sure.
As we all know, employee retention is difficult for businesses during an economic downturn. There are a few ways to retain employees during this hour of need, like promoting inclusivity and diversification, setting clear work objectives, providing a comfortable work environment and so on.
In the next few months, there may be a decline due to some unsettling indicators like declining stock prices, sluggish economic development, and rising trade tensions.
As the saying goes, prevention is better than cure; it is always a good idea to stay prepared ahead of problems.
Summing Up
It’s no secret that an economic downturn has caused a lot of struggles for professionals. We have seen how challenging it was for entrepreneurs not to detach the string of employee productivity. But, there continues to be hope in the midst of all of this. There are always ways to go through difficult situations and emerge stronger.
Whatever industry you are in, greater productivity could always benefit your firm’s prosperity. Even in the most difficult economic times, employee productivity can be increased by following the solutions provided in this blog post.
Stay positive, optimistic, and hopeful!
Meet The Author
Nashwa Basheer
Researcher & Content Specialist
Nashwa Basheer is a researcher & content strategist with post graduation in mass communication who focuses more on mastering time management, productivity, work-life balance, and time tracking. She spends her days researching a broad range of topics which drives her to learn more about the necessity for time-tracking software in a business. The author is a specialist in educating people on how to boost their productivity so they can effectively manage their time. Her primary interest area also encompasses the network marketing sector.
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