Surviving a recession at the community level

The recession seems to result in two types of company behavior:

First, a company cuts costs by cutting employment. Recessions often see a ritual bloodletting of human resources. Companies automatically attempt to do more with fewer employees. Those employees that are not fired are frequently given larger workloads, reduced salaries, and longer hours.

Second, a company cuts hours per person, rather than the total number of employees. I’m biased, but I like this option best. It increases employee loyalty, fosters a sense of camaraderie among colleagues, and lets employees learn to do more with less both personally and professionally.

The additional personal time and lower paycheck implicit in the second option also allows employees to explore additional interests. Employees with the time and motivation to pursue individual interests can contribute to a company’s overall creativity. This contribution is also something than an employee is usually happy to do, considering how the company has opted to save rather than sacrifice.

A recession is a rough period in which to sustain business, but it is a period that can inspire corporate creativity. Businesses that are smart and attract and retain smart employees can sometimes thrive and evolve within a recession. Microsoft is famous for this, as is Macintosh and, in the 1990s, Toyota, a company that invented an entirely new and widely copied business model during difficult times.

The first option reminds me a bit of certain bacteria. These bacteria produce hardened shells or endospores to cover their bodies when an environment is not conducive to growth or reproduction. The shells shelter the bacteria during hard times, protecting the organisms from the difficult conditions. Once the harsh conditions of the environment subside, the endospore ruptures and the bacteria begin to grow again.

While bacteria have existed since the universe began to support life, they have not evolved much in the last few centuries. One has to wonder if, in our current hard times, we can’t learn a bit from nature rather than attempt to save ourselves from another man-made mess.