“When the next recession happens, what will be the biggest impact on your business and your clients? What preparations are being made?”

Lessons from the past

I think the biggest impact for our clients is a reduction in staff and how that affects their total operations. Employers have challenges when reducing staff, including government regulations, employee morale and overall efficiency of operations. As they look towards cost reduction, their biggest spend is on wages and employee benefits, and these are therefore the first places they often look to cut without considering any potential unintended consequences. During the last recession, we found our clients struggling to remain profitable and making quick decisions rather than clearly thought-out actions.

We understand these challenges, having assisted clients in the past as they've made difficult decisions in order to survive. In addition, this time, since HR is one third of our practice, we have a heightened awareness of decisions affecting employees and their families. It is important for us to educate our clients on HR best practices, including employee benefits, and prepare them in the event of a recession.