Many businesses often prioritize cost-cutting measures during economic uncertainty. However, one strategy entrepreneurs should consider during a recession is investing in their salaried employees. While this may seem counterintuitive at first, there are several reasons why this can be a strategic move for businesses looking to survive and thrive in challenging economic times.
Loyalty and retention
First and foremost, investing in salaried employees can lead to increased loyalty and retention. During a recession, employees may feel anxious about job security and may be tempted to leave for greener pastures. By investing in their development and well-being, entrepreneurs can show their commitment to their employees and create a more engaged and motivated workforce. This can lead to higher retention rates, ultimately saving the company money in the long run by reducing turnover and recruitment expenses.
