Effects of the credit crunch are already being forecast, as many finance execs plan to take drastic measures to control costs next year.
The most common measures include increased payroll cuts and decreased operating costs.
According to recent survey at a national conference, 56% of CFOs said they would be forced to cut payroll in 2009.
Fifty-seven percent of the respondents also predicted knocking operating costs down by more than 5%.
Will these measures help? Not in the short-term. Half of the survey participants believe the upcoming year will result in a decline in company revenue.
The key to surviving in this type of climate is retaining your top talent and keeping them motivated and productive. As we reported previously, there are practical, proven ways to get the most out of your staff.
If you’re one of the many companies cutting payroll, you’ll probably need to do more with less.
And if you have to make cuts, remember, the remaining staffers are likely to be rattled. Allow them ample time and opportunity to voice their concerns. Downsizing needs to be handled delicately, or you can end up losing some of your top performers.