How being financially prepared can be crucial to businesses in times of need
Image source: Honeypot ant, strangeanimals.info
Highlight: “Many insects, notably honey bees and some wasps, collect and store liquid food for use at a later date. However, these insects store their food within their nest or in combs… Honey ants are unique in using their own bodies as living storage, used later by their fellow ants when food is otherwise scarce… When the liquid stored inside a honeypot ant is needed, the worker ants stroke the antennae of the honeypot ant, causing the honeypot ant to regurgitate the stored liquid from its crop…”
Insight: While it is common sense that businesses should put money on the side for times of difficulties (like individuals should), the preparation is often obviously not enough. Indeed, it has become almost common practice, especially for large corporations, to deal with financial difficulties in the easiest way possible: through moderate and sometimes massive manpower cuts. This practice is commonly simply the result of failure to anticipate business slowdowns which are in fact inevitable.
While it is sometimes indeed inevitable to lay people off in order to keep the business afloat, the practice is exaggerated and often unjustified. A common excuse sounds something like: “we are worth billions in assets but we don’t have enough cash flow right now to pay salaries!”. What businesses should do instead is perhaps to set aside special accounts with high interest rates to prepare specifically for times of economic slow down; that is readily available cash money on the side (not only assets such as properties that take time to liquidate).
With such simple measure in place it becomes much easier to absorb economic difficulties while maintaining the workforce through a financial storm which usually only last a matter of months. Also worth highlighting is the fact that the damages resulting from manpower losses verses financial savings gained from manpower cuts is often underestimated as corporations often struggle to recover and need to reinvest heavily in hiring and training of new staff; not to forget the damages induced to the brand.
Do you fear for your workforce future? If so perhaps consider setting up special manpower bumper accounts as a lifeline for the workforce…
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What is Biomimetics: the field of gaining inspiration from nature first to solve some of our most difficult challenges. Instead of coming up with our own solutions to a problematic, the odds are that species or natural systems on the planet already offer an ultimate solution. This simple fact is also another strong case to preserve species at all cost as the intellectual heritage contained within or through the study of species is both irreplaceable and invaluable…