The pipeline industry is no exception. Although government stimulus incentives focusing on infrastructure projects are an uplifting sentiment, it cannot be the only solution. However, there are ways to survive the downturn and maybe even come out on top.

Implementing tangible and constructive ways of overcoming the current financial climate is critical: retain your best employees wherever possible, maintain overhead costs with on-hired workers, and as a last resort, implement out-placement services.

Retain great employees

Retaining the best employees will not only speed production rates and save countless hours of administration, it is also highly cost effective. Recent studies have shown it could cost up to three times the amount of an employee’s salary to replace a skilled position. This means companies could be potentially spending millions in filling vacant positions.

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Manager of Bayside Personnel Sean Blanche says “The best way for businesses to avoid staff turnover is by taking proactive measures. This means employers must invest in their employees for the long term.

“Part time training programs can upgrade skills and fast track their career progression within the company; offering ‘completion bonuses’ for employees who see projects the whole way through; and, also financial compensation and promotion can empower employees and ensure employee loyalty.”

Maintain overhead costs

Employee overhead costs can accumulate into a major expense over time. Depending on production timelines and project flow, contract and on-hire workers might be a better option.

“This option can ensure that the business has the resources to keep productivity high, without the burden of engaging full time staff. Therefore, overhead costs are significantly reduced,” says Mr Blanche.

Out-placement services

When all other measures have been exhausted, retrenching staff may be the final option. It can also be one of the most stressful and unpleasant parts of any manager’s job – especially as it is seldom due to any fault on the part of the employee.

By involving a nominated third party to manage an out-placement service, employers can be assured that employees made redundant will be placed faster and receive necessary up-skilling and/or training. With prior planning, sensitive management and counselling, the negative impact on the business will be kept to a minimum.

Mr Blanche says “The benefits of utilising out-placement services can increase understanding of the sensitivities, legalities and ethics, as well as increase morale of remaining staff, reduce down time, the risk of litigation, brand damage and negative public relations.”

Some industries have been hit hard by the global economic circumstances while others seem to be immune to the global circumstances. Even so, businesses that are not prepared to examine their operations are the ones who will be the most negatively affected. Nonetheless, it is the unknown making businesses feel insecure.

“The only thing constant in life is change,” says Mr Blanche. “Putting employees and staffing models at the root of your strategy can release the anxiety in your business.”

Bayside Personnel assists businesses in attracting and retaining pipeline professionals across Australia and the Middle East. With an engineering and technical focus, Bayside Personnel recruits construction professionals, pipeline engineers, consultants, project managers and government regulation staff for the pipeline industry.