25 Jan 2023
Weathering a Recession With an Interim Talent Strategy
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A recession is coming. We are hearing about it in the media, and from politicians.
And, we are all personally feeling it.
Rampant inflation is resulting in aggressive rate hikes from the Bank of Canada, as the urgency to tame sky-high inflation remains a significant priority. The federal government has acknowledged that these increases will threaten the economic prosperity of Canadians through higher unemployment and mortgage rates. In fact, RBC has already estimated that higher prices and interest rates will shave $3,000 off the average Canadian household’s purchasing power. RBC goes further to acknowledge that as debt-serving costs increase, and purchasing power declines, the economy will be greatly impacted as interest rates slow the once red-hot Canadian economy.
The bottom line? There will be difficult days ahead for Canadian businesses as consumers cut back on spending. Businesses small and large will face declines in sales and profits – the latter of which will also be impacted by increased borrowing costs creating a profit double whammy. Unemployment is expected to be impacted as businesses look to cut costs through reduced capital spending, and layoffs. As the recession takes hold of the economy, there will likely be reduced access to capital, slower collection of funds, and increases in bankruptcies.
In short, businesses will be forced to consider cost-cutting initiatives and operate in ways that create greater cost certainty to better position themselves to weather – and eventually emerge, from the recession.
As organizations work to find ways to compensate for staffing and operational changes through existing or new business processes, adopting an Interim talent solution as part of their overall talent plan is a sound and prudent strategy. Interim executives provide organizations with the ability to fill critical skills gaps during times of change, crisis or growth. They are highly qualified experts with specialized skills and the experience required to quickly address strategic business imperatives – sometimes planned, and sometimes unexpected. Further, the best Interim leaders thrive in ambiguity, think strategically, demonstrate decisiveness, and excel at managing stakeholder relations.
In times of recession, having an Interim talent strategy can positively impact your business by providing:
- Cost certainty that improves organizational pliability and adaptability to weather economic storms
- An integrated consultant, one that brings a fresh perspective, deep experience, and unbiased insights – without the big consulting firm prices
- A new vision or hyper-specific skills and experience to ensure the resolution of your organizational concerns
- Much needed capacity and capability to a team at the right time, without the long-term commitment or impact on current compensation structures
- The flexibility to retain multiple fractional employees, and the right expertise to meet unique organizational challenges
- The capability to complete a project, a special assignment or achieve a goal within a defined timeline
- Risk mitigation of overpaying to fill a key role
Odgers Interim can work with you to build a custom talent solution that incorporates:
- The flexibility to align your talent strategy to your overall organizational strategy, and situation, while accounting for market forces and risks
- Proven experience deconstructing situations and context to define the opportunity and approach required to attract the best talent to an Interim assignment
- Access to situational specific talent with the leadership capability to address your business challenges
- An understanding of the individual who will best integrate into your business
Utilizing Odgers as your Interim Talent partner will de-risk both the selection and assessment process, to ensure that you have the right talent at the right time, for the right period of time. It will also open valuable bandwidth for your team to focus on value-add services for your business partners.
With the pending recession, it’s time to create smart and focused talent plans that place greater focus on cost certainty, while mitigating the overall negative market impacts.
Odgers Berndtson can help. Contact me to find out how.