A Piece of Christmas Cheer!
It doesn't have to be all doom and gloom – take heart that there can be a positive side to the current economic climate! Previous market downturns have been the catalyst for increased entrepreneurial activity as people are shaken from the status quo and leave their current employment to start new ventures. Evidence is that new business formation remains buoyant in a recession – "even in a downturn, the number of business start-ups is pretty constant, hovering at around 640,000 a year" [Small Business Administration]. Adding weight to this is the fact that there have been a number of highly successful companies formed during an economic downturn.In the UK, Experian, Sage Software and Stagecoach (all FTSE 100 companies) commenced trading during the 1980-82 recession. Other global companies that started in recent downturns include Microsoft and Compaq; looking further back, GE, Hewlett Packard, Johnson and Johnson and Walt Disney Corporation were all incorporated in turbulent economic conditions but have gone on to achieve great success.
So what does this mean for existing clients and candidates? Companies are forced to concentrate on the core activities of the business, focus on cash management which is never a bad thing and re-evaluate strategy that clarifies their positioning in the marketplace. The companies that survive a recession often emerge as the best performers in good times.In addition, it is an excellent opportunity to identify the leaders of tomorrow in those employees who demonstrate strong management and leadership abilities in the toughest of times.
Candidates can also take the chance to evaluate what they ultimately want to achieve from their careers and how best to get there. Unfortunately recessions do happen, so use this opportunity to hone key skills or learn new ones that will serve you well when things turn around. For those candidates who decide to stay in their current roles, standing out from your contemporaries now will increase your promotion prospects in the future.It is easier to look good in a strong market but less so when the going gets tough. Performing well during a recession is an achievement which will be attractive to any future employer.
2008 has certainly been a challenging year but here's to an equally interesting but much more positive 2009!
