For most businesses, a decline in revenue as a result of this crisis is inevitable. But the response to that decline isn’t as simple as a corresponding reduction in headcount. This crisis will end. And when it does, organizations need to hit the ground running. That means preserving as much operational capacity as possible – the capacity to generate revenue, the capacity to deliver to customers, and the capacity to advance your strategic priorities. Leaders will succeed or fail according to how well they walk the line between cash preservation and capacity preservation.
70% of leaders have not experienced a significant business disruption in at least five years.
The behavioral changes needed to fight COVID-19 have led to immediate decline in revenue for most businesses. Learn the right responses to those economic challenges to ensure you are well positioned for the rebound.
Every day, COVID-19 is raising new and complex questions for leaders and organizations to answer. Korn Ferry’s Nathan Blain shares his perspective and advice.
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The first step for most organizations is to evaluate the likely impact of the crisis on the economics of their business. There are two major forces at play here. The first is the extent of revenue loss and the second is the length of time it will take to contain the virus. We can help your senior leaders to identify the most likely scenarios for your organization and generate the cost moderation options for each. We then work with your reward and finance teams to model the impact of each of these cuts on employees and production capacity so you can identify the savings that have the lowest impact on organization performance.
We’ll identify the savings with the lowest impact on organization performance.
Optimizing your reward spend – The cost of rewards investments is usually well understood, but the value created for employees is often not. Korn Ferry quantifies the value to employees of rewards investments through conjoint analysis—a widely used technique in consumer and employee research. We then work with you to cut from investments that are undervalued by employees and invest in programs that are overvalued. We typically find opportunities to save at least 5% of an organization’s reward bill without reducing (and sometimes improving) the perceived value of the total offer to employees.
Reviewing your staffing levels, spans and layers – An analysis of the size and “shape” of an organization often reveals significant cost-saving opportunities that can be realized through focused role design work. We have developed a range of online interactive tools and analytic reports to highlight where in your organization you might be over or under- resourced, what the associated costs are, and how your headcount compares to the market. Our analysis is based on our work measurement methodology, which is the most robust and widely used in the world.
Outsourcing to lower cost markets – Organizations that have carefully defined their operating model can often find opportunities to lock in sustained cost savings by moving work to lower cost labor markets. We can work with leaders to redefine work and the operating models used to deliver it. And, drawing on Korn Ferry Pay – the world’s most comprehensive compensation database – suggest more affordable locations.
Restructuring to deliver efficiencies – As your business moves to prioritize cost optimization, you may need to look at your operating model to reduce redundancies, centralize shared functions and streamline processes. Korn Ferry’s organizational strategy team can support you with a process and tools to deliver these changes without disrupting your business.
We typically find opportunities to save at least 5% of an organization’s reward bill.
This is an extremely unsettling time for employees and leaders will need to work hard to keep them engaged and productive during this time. We work with leaders to help them guide their employees through major disruption. Helping them make the case for change, putting in place enablement initiatives and, where layoffs are necessary, supporting employees to more easily transition to a new career.
We work with leaders to help them guide their employees through major disruption.
In our hands it’s more than just data. We use it to build the DNA of outstanding leaders, effective organizations, high performance cultures and game-changing reward programs. In your hands it can continue to inform smarter decisions backed by more than 4 billion data points, including:
– Over 69 million assessment results
– 8 million employee engagement survey responses
– Rewards data for 20 million employees across 25,000 organizations and 150+ countries