The Drunken Sailor Sobers Up

By John Malmo

http://stream.publicbroadcasting.net/production/mp3/wkno/local-wkno-949453.mp3

The Drunken Sailor Sobers Up, by John Malmo

Memphis, TN – Since you've probably heard every other theory on when to expect serious relief from this recession, here's another. In my fifty nine year working career, I've been through several other, admittedly less serious, recessions. In my business, I had the chance to work closely with hundreds of companies of all sizes and types. One of the things I observed repeatedly was that during good times, almost every CEO over-staffed. He or she hired more people than the company needed. Spent money on personnel like a drunken sailor.

Then, when things turned sour, people had to be laid-off. Nobody likes to separate people from their jobs. It is one of the most distasteful actions a person ever has to take. Sooner or later, though, to protect the business and core employees, it must be done.

Having done it once, no CEO ever wants to do it again. So when things begin improving, he or she is a lot slower to re-staff. In many cases, depending on the company size, re-staffing won't occur until there is a new CEO. By 2012, there will be enough new CEOs that re-staffing will be measurable. And I'd bet on it.

Proprietorships re-staff slowly and conservatively, but I believe they'll be inching back up late next year.

John Malmo is a marketing consultant who concentrates on helping business owners grow their businesses with effective marketing. To reach Mr. Malmo, hear and read more of his commentaries, or ask him a direct question, go to askmalmo.com.