Surviving Thriving Through Tough Times
6 Strategies for Employers, Based on 36 Years in Business
While recent reports and OCR cuts indicate inflation is back in the target range and New Zealand’s economy is stabilising, skills shortages remain a concern in some sectors, especially in industries that rely on a mix of entry level, experienced and skilled workers. It’s also predicted that employment recovery will happen slowly and unevenly around the country, meaning Kiwi businesses aren’t quite out of the woods yet.
At AWF we’re optimistic that this year will bring an improvement in business confidence and economic performance, with a subsequent decrease in unemployment after the predicted mid-year peak.
Why should you trust our optimism though? Well, while there are no survival stats for businesses like ours born in the ‘80s, more recent data shows that only 27% of businesses formed in 2014 were still operational a decade later. That makes us pretty rare at the ‘ancient’ age of 36!
We’ve survived a global financial crisis, multiple recessions, historic weather events, and a pandemic – and learned lots of valuable lessons along the way.
So, as you plan for the rest of the year ahead, here are six workforce strategies that we’ve learned in our 36 years of business. We hope they’ll help your organisation build resilience, make informed hiring decisions, and thrive in ’25.
Lesson 1: Prioritise Adaptability
All businesses grapple with workforce supply challenges, but it’s more common during an economic downturn. Workforce needs can shift rapidly due to project demands, seasonal peaks, and market fluctuations. These changing needs require a high level of adaptability to be managed effectively.
In industries like construction and logistics, having the right number of skilled workers at the right time is critical to meeting deadlines, maintaining efficiency and ‘balancing the books’.
We know that for our clients, there’s a direct correlation between a lack of available, dependable workers, and lost revenue opportunities. So, while we offer permanent recruitment solutions, the heart of our business is labour hire, delivering flexible staffing options to address fluctuating workforce needs.
Employers who plan for workforce flexibility through a combination of permanent staff and temporary or contract workers can better respond to spikes in demand. Whether ramping up for a planned roading project or meeting increased product requirements, having scalable hiring solutions like a reliable temporary workforce ensures business continuity without overcommitting to long-term costs.
Lesson 2: Continue to Invest (Where Possible)
Economic downturns often lead to cost-cutting, but reducing investment in employees can have long-term consequences.
Back in 2008 when the GFC hit, Allied Work Force (as we were known back then), faced difficult times, as demand for labour hire was hugely reduced. Many organisations in the same boat took drastic cost measures – understandably!
By balancing cost control with investment in client services, our internal people and field employees, this allowed AWF to uphold high standards and maintain a strong reputation.
We learned that allocating resources to training programmes, upskilling opportunities, robust channels of employee feedback and well-being initiatives, can help keep morale high and reduce costly turnover. Both our experience and multiple studies (like this one) show that replacing employees is more expensive than retaining them, the delivery or scale of the initiatives may need to be adjusted, but the goal remains the same.
Lesson 3: Build Employee Loyalty
A loyal workforce is a business’s greatest asset. Employers who build strong relationships with their teams gain a reputation as desirable workplaces, strengthening their brand and making it easier to attract skilled workers when the market tightens.
We’re fortunate to have a large and loyal workforce, which we’ve grown by prioritising the safety of our workers, recognising achievements, providing training, and offering opportunities for our employees to upskill by moving from assignment to assignment. In fact, some members of our contingent workforce have been temping with AWF for over ten years!
We’ve learnt that employees notice when a company values them, especially during hard times. Initiatives don’t have to be expensive either – they can be simple but effective, like employee recognition programmes, career pathway plans, and fair pay policies. These types of initiatives will build loyalty and engagement, which will significantly improve retention and help your organisation become an employer of choice in the job market.
Lesson 4: Strengthen Customer Relationships
Customer loyalty is just as important as employee loyalty, and in the same way that employee turnover can be costly, so can finding new customers. Plus, we know a great employee experience drives a great customer experience.
Businesses that maintain strong relationships with their customers during tough times – regardless of whether their clients are able to buy their product or use their services – position themselves for long-term success.
Our approach is to partner closely with our clients whenever we can, but especially during uncertain times. We work together to anticipate staffing requirements in advance, rather than providing reactive solutions.
We structure our customer management so that clients have a dedicated account manager with a deep understanding of the sector and region, delivering comprehensive expertise and experience. As part of the Accordant Group we’re also uniquely positioned to provide clients with access to broad market information, resources, and insights, adding additional value beyond our standard services.
No matter who your customers are, proactively communicating with them, understanding their needs in advance, and finding ways to add value above and beyond your core services will help build long term trust, ensuring your organisation is the preferred choice over competitors when market conditions improve.
Lesson 5: Prove Your Reliability
Consistency is important at any time, but especially during times of economic uncertainty. Increased risk means customers are often more cautious about where they invest their time and money, and partnering with reliable businesses provides some peace of mind during what can be a stressful time.
Over the years we’ve focused on becoming a trusted staffing provider; streamlining our processes and procedures, improving our user experiences, resolving pain points, and mitigating risk for both our clients and candidates.
By consistently delivering on your promises, meeting deadlines, and maintaining high service standards – even when the market is volatile – you’ll strengthen your reputation for being reliable and gain a competitive edge.
Lesson 6: Plan for Recovery
If our decades in business have taught us one key lesson, it’s that things will change, and what you do (or don’t do) now will influence how quickly your organisation recovers when that change comes.
Proactively managing your workforce needs will reduce the risk of costly hiring delays, skill shortages, and inefficiencies when business does pick up.
A proven track record of reliability can help your organisation in a range of new ways, such as attracting new clients, securing larger contracts, and expanding operations when the opportunities arise.
Preparing for future demand and taking time to plan the steps you will take can position your business to take advantage of growth opportunities and scale up when market conditions improve, rather than scrambling to rebuild.
This may even extend to exploring new service models, adopting emerging technologies, and identifying efficiency gains for long-term success.
Economic cycles are inevitable, and while downturns bring challenges, they also present opportunities for businesses that plan ahead.
Survive Thrive Through Tough Times
While we’ve learnt a lot over the years, these six key factors are what we know played a key part in AWF’s success during challenging economic times.
We expect conditions to improve as the year progresses, and there’s nothing we’d like to see more than our clients thriving in their respective markets. Whether its embracing adaptability, investing in your workforce where you can, fostering loyalty, prioritising customer relationships, ensuring reliability, or planning for recovery – or a piece of them all – we’re in your corner and here to help you achieve long-term success.
Check out our services for more information, or get in touch with the team at your closest AWF branch today.