As a Managing Director of a company that provides temperature and humidity solutions to predominantly the warehousing and industrial sectors, I thought I would share my dilemma that I’m sure other business owners and managers also face.
I don’t pretend to know the answers, but thought it might be worth sharing some of the considerations that I’m facing in whether to reshape, recruit and build or hunker down until the World, Europe and the UK offers some sort or predictability. I promise to not refer to ‘new normal’, masks or social distancing as this is extensively covered elsewhere.
Context
Our business has seen steady growth in the past 5 years, as a result of our efforts to create and retain relationships with customers who value our offer. Our focus has always been to offer solutions to large scale complex HVAC projects. We invest heavily in intellectual talent sponsoring PhD and MSc students, to keep us on our toes and develop leading edge solutions. We also feed off each other and our network of equally talented suppliers.
My dilemma as Managing Director is do I continue our ambitious Research & Development (R&D), IP and Business Development or throttle back and take a cautionary approach until the economy offers a more certain platform? ‘Fortune favors the brave’ they say, but when you have a good business and employees look to business managers to ensure their livelihoods, how brave is brave?
The Dilemma
Immediate transactional or contractor resources are easy to obtain with the right screening and due diligence
Immediate transactional or contractor resources are relatively easy to obtain with the right screening and due diligence, but for more developmental strategic roles, do you recruit in an emerging post pandemic, catastrophic employment forecast, that to in a mid/post Brexit world?
From my personal perspective, it boils down to attitude, communication, enthusiasm and buy-in from everyone in the company. Nothing new there, but it feels that the stakes are higher so confidence is key.
Do we or don’t we?
Inaction is the riskiest response to the uncertainties of an economic crisis. Rash or scattershot action can be nearly as damaging. Rising anxiety (How much worse are things likely to get? and for how long is this going to last?) and the growing pressure to do something often produces a variety of moves that target the wrong problem or overshoot the right one.
Within the world of HVAC, changes to legislation, environmental considerations, technological changes and research and development might be slowed or influenced, but won’t stop as a consequence of the immediate economy, which is a good thing.
Recruiting on a need basis
Many companies recruit when needed, to fill a vacant position or when a large project demands more manpower than the current headcount supports. This approach is obvious and addresses immediate transactional and resource needs. Using headcount as a KPI for growth, at a glimpse may illustrate positivity, but may be signaling a stop gap and may not be a true indicator of strategic growth.
Of all the things I have observed over the last 5 months, reading the news, talking to colleagues and peers, a few things have stuck out for me, such as how companies have treated their employees, customers and suppliers, how creative and flexible some big organizations have been in responding to market changes and demands and how, despite uncertainty, their core business skills, intelligence and ability enabled them to prosper in a new and unforeseen environment. Finally, how companies will be remembered post crisis.
Robust business planning
The ability to respond quickly to market changes relies on creativity and attitude
My belief is that those companies that have and continue to float to the top had the key ingredients of a successful business, enabled by capable enthusiastic talent that were given the opportunity to shine. These people weren’t hired to fill a stop gap, but rather these people were hired as part of a robust business plan.
So, ‘do we or don’t we?’ Our philosophy at Jet Environmental Systems is to have a solid platform, identify future markets, trends and technologies and hire the absolute best people that we can to get us there. Recruitment in our business is a process that supports our strategic development and so for us our answer is yes, have confidence and continue to invest in the best talent.
The ability to respond quickly to market changes relies on creativity and attitude with support from equally enthusiastic management who create the opportunity for individuals who present this talent to grow.
Conclusion
I hope the thought process I’ve shared has been useful, for me it has been a checkpoint in whether our choice of investment in people is right, not just now but in all situations. For me, it’s a resounding yes! I think we will create opportunities by having vision and giving people opportunity.