The 2019 Coronavirus showed us what it is like for businesses to experience a pandemic – it is hard and requires a lot of planning on how to keep your business alive without retrenchment, furlough or letting staff go as much as possible. A lot of people have lost their livelihoods due to many companies shutting down operations, which is understandable but what if we place the situation in a different light – what if you are losing important positions in your workforce that could not be avoided? How will you keep your operations at their best?
According to a Small Business article by Chron, the purpose of a contingency plan is to allow an organisation to return to its daily operations as quickly as possible after an unforeseen event which is similar and adaptable for circumstances of losing staff. Having a contingency plan for loss of staff means you and other key shareholders in the business will know the steps to take if a key employee or themselves falls seriously ill or passes away. Well, we have mentioned in previous articles the importance of having insurance which covers the same principles of having a back-up plan.
Why the need to have a contingency plan for loss personnel?
First, because it gives you the privilege to think ahead and plan forwards. Before the unwanted event comes, you know exactly how you will handle it as your goals and objectives are already clear that makes it easier to reduce the chances of your staff leaving. Second, you are managing the risk earlier which is also vital for your business to think of ways on how to mitigate such scenarios. Lastly, it saves your organisation from falling apart because of losing a vital piece of the puzzle.
Plan for the worst, hope for the best and land somewhere in the middle. There will be difficult decisions to make if you are growing a business. People will come and go. That is expected. So having a plan to remain operational when the worst happens is not a negative view, but a vital outlook that all companies need.