Tag Archives: Recession

Sharp drop in UK retail sales

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All that's left !

I was just reading an article on BBC business about how retail sales are showing a 1.8% drop between December and January. It’s a worrying sign because it could be an indication that the economy is headed for another contraction just after having supposedly come out of a recession.

The thing about retail sales is that I’m not 100% sure how they capture online shopping, if they do so at all. The thing about recession is that people start looking about how they can save money on their purchase, and going online is one way to do it. All you have to do is fire up your laptop, get yourself a mobile satellite connection and get things cheaper online. That’s besides the fact that if you’re looking for alli weight loss pills, you can get them from other countries cheaper than you can get them in the UK. That’s not going to appear in the retail figures.

Dealing with Survivor Guilt

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I came across a great article today that talks about how to stop Survivor Guilt from affecting your business. Survivor Guilt is defined at the psychological impact that your employees are subject to in view of layouts happening to friends and co-workers around them. The current economic climate means that companies are downsizing in order to cope with it’s effects, and everyone is being impacted by the measures organisations are taking to keep themselves viable.

The problem with survivor guilt is that it carries a risk of turning to resentment: resentment that their circle of friends and influence is being reduced, resentment that their workload has increased, resentment that others in the company have been treated unfairly. This can have a negative impact on their attitude towards management with a knock on decrease in output and effectiveness.

So what can be done to mitigate against the effect of Survivor Guilt? Here are a few measures that can be taken:

  • Reach Out: Maintain a relationship with the laid-off employees. Ensure they know you will be looking to them again when you can and encourage them to keep in touch with their friends. You haven’t just told them to pack their luggage and leave; you want to keep in touch. Don’t hide this; make sure the remaining employees know you are looking out for their ex-colleagues. Show them you care.
  • Manage Increased Workloads: Be aware of the extra work people now have to do. Offer them support and help them make themselves more effective. Listen to them and give them the tools they need.
  • Put Yourself on the Line: Show your employees that the lay-offs have been hard on you too. Share your feelings with them and let them know of any measures you are taking to ensure the company’s continued success.

The advice above is not complex, but it’s easy to forget in times of recession when companies are struggling for survival. It’s easy to get defensive, hide behind your fight gear and attack anyone who comes your way, but this is not constructive. Show your team that you care about that, show them your human side, show them you are compassionate. And above all, give them hope for the future.

Recession: It’s official

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Malta - Euros (Coins)

So, the official word is out, the UK is in recession for the first time since 1991. The technical definition of recession is when the economy shrinks for 2 successive quarters, and that’s just what happened. Last quarter the economy deflated by 0.6% and in the last 3 months, the economy slowed by another 1.5%. Considering that happened over Christmas, which is supposed to be one of the busiest shopping periods of the year. Granted, the rest of the economy slows down but you don’t normally expect to see these sort of figures.

The pound is also losing value compared to other currencies around the world, which has the effect of making it harder for people to spend money abroad. For example, a tub of Ephedrasil hardcore costs $79 which today is around £58. Some time ago, this used to cost £45 just a few weeks ago. It’s not all bad news though; exporters get more for their products, assuming that they can make the sales they are after. And people being paid in dollars get more bang for their buck, figuratively speaking.

How has the recession affected you?

Japan doesn’t have it easy either

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With economic turmoil at our shores it is easy to forget that others around the world are facing similar hardships. I was reading today that Japan’s economy isn’t looking too hot at the moment. The base rate is set to 0.1% (lower that the UK or the US), unemployment has risen to 4% and output has dropped 8% in November with another expected 8% drop in December.

The problem is that forcast sales of the goods produced by the Japanese economy is down. This is felt by factories and support industries, all the way down janitor and programmer jobs, everyoen is affected. Unfortunately until a positive outlook appears, everyoen is going to be affected and this is the net effect of the economic crisis we are facing.

There have been a couple of ripples here in the Isle of Man, but the politicians feel that we will not technically suffer a recession. The reality is that the Island has had a number of years of unprecedented growth and the hope is that any short-term blips will be cancelled out by long-term growth. We’ll just have to watch that …