Protecting your business during a recession is no easy feat. A “unique triple squeeze” of high inflation, talent scarcity, and supply chain volatility is ramping up the pressure on business leaders. Without early action, economic shockwaves will take their toll.
Investing in the right digital solutions will help you tackle the triple squeeze head-on. Automation technology allows you to reduce employee workloads, supplant “fatty” processes with lean, operative ones, and altogether do more with less. Let’s take a deeper look...
Recession, In Brief
Looking to recession-proof your business? Then it’s good to first understand what’s going on.
A heavy cocktail of Russian sanctions, caused by the war in Ukraine, and the aftermath of COVID-19 have left us with a shoddy global economy. So shoddy, in fact, that inflation (in the US) sits at around 8% – the highest it’s been in four decades.
The good news is that this kind of recession (inflation-driven rather than credit-driven) hits businesses more softly. Corporate earnings are less affected and fundamental industries (housing, automotive) remain strong. Revenue might also be more durable, with more dependence on subscription-based and recurring revenue streams.
Is It Possible To Recession-Proof Your Business?
An inflation-driven recession can be shallow, with fewer casualties. However, a recession is still a recession. A contraction in economic activity means slow sales, shrinking profit margins, and lower wages. Layoffs and hiring freezes are inevitable, even as short-term solutions.
For this reason, make sure to protect your organization early on. The best way to do this – which solves many problems in one – is to trim, refine, and automate your business processes.
Why Automate In A Recession?
Let’s look at payroll as an example. When the onboarding process is automated it significantly improves and speeds up the process, eliminates human error, and reduces employee frustration. Data is automatically entered where it needs to go, no one is holding up the process, and chatbots can deal with employee questions about payslips, for instance.
Imagine the value your HR team could add to your business if they were free from manual payroll tasks. They could focus instead on bringing in the best talent to help grow the organization. Or work on retaining key talent. Or put in place a career progression program to help engage teams.
How Does Process Automation Recession-Proof Your Business?
Early decisions in a recession often involve hiring freezes and, in some cases, redundancy. This means that the organization has less talent to work with. Automation balances this out, relieving employees of their heavy workloads and taking on mundane and iterative tasks. Here are some examples:
- Risk assessment
- Material requisition
- Construction worker onboarding
- Insurance renewals
- Pension administration
- Policy administration
- Appointment bookings
- Patient admission and discharge
- Performance appraisal
- Volunteer recruiting
- Training requests
- Complaints administration
- Quality control
- Customer onboarding
- Supply chain administration
Benefits Of Process Automation During A Recession
The right process automation solutions are well-equipped to recession-proof your business. And the benefits are numerous. Here’s just a few:
Productivity is a major draw for businesses looking to implement automation solutions. In a world where 90% of employees feel burdened with repetitive tasks, process automation can provide a serious productivity uptick by taking the onus off employees. For staff with largely administrative roles, process automation works in tandem, helping employees move through their task list faster.
There’s never a better time to save money than during a recession. And businesses that implement process automation can see, in just a few weeks, how it impacts the bottom line. Businesses using FlowForma’s automation services have saved:
- $80,000 on a material requisition process
- 700 “people hours” in under a year
- 6,000 hours of administration by automating five key processes
- 75% less emails on one task alone
- 100,000 sheets of paper, by digitizing one process alone
If you’re looking to cut costs quickly in the recession, process automation saves on resource hours, costly human error, and administrative items like paper.
A lack of IT support is a major roadblock to digitization. Businesses without the funds or IT talent can struggle to implement new technologies. During a recession, this problem becomes more extreme, with less funding for IT, and a reduction in staff numbers. But technologies like process automation provide significant benefits to businesses in hard times.
The solution to this is to invest in no code technologies. No IT skill is needed, and businesses see a faster return on investment than with low code or more complex tools.
Soften The Blow To Your Business
The landscape during a recession can be overwhelming. But gauging the climate early-on, and acting accordingly, can help a lot.
Solutions like digital process automation allow you to tackle the triple squeeze head-on, reducing the need for new talent, providing support to current employees, and creating significant savings across your business. No code tools like FlowForma Process Automation mean that improving your processes can be done by the people who know them best, without a lag period or disruption to everyday working.
If you’re looking to grow during a recession (and not just survive), it’s important to invest in technologies which impact the bottom line. Choppy waters might lie ahead, but FlowForma is here to keep your business afloat.