{"id":4131,"date":"2022-08-08T12:30:14","date_gmt":"2022-08-08T17:30:14","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=4131"},"modified":"2022-08-08T12:30:14","modified_gmt":"2022-08-08T17:30:14","slug":"what-does-stagflation-mean-for-the-hr-side-of-your-business","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2022\/08\/08\/what-does-stagflation-mean-for-the-hr-side-of-your-business\/","title":{"rendered":"What Does Stagflation Mean for the HR Side of Your Business?"},"content":{"rendered":"

\"Stagflation\"<\/p>\n

For workers in their 50s or younger, the term stagflation may be unfamiliar. But anyone who experienced the combination of high inflation and recession in the 1970s is well-acquainted with this unfortunate economic phenomenon. The factors that produced stagflation are back again today. Businesses will need to evaluate their operations to see what can be optimized to help fine-tune their operations in a challenging economy. Evaluating your HR processes and expenditures can play a significant role in helping your organization navigate stagflation.<\/p>\n

Stagflation \u2013 Then and Now
\n<\/strong>During the 1970s, the Fed pursued aggressive strategies to reduce employment after the Vietnam War \u2013 even in the face of high inflation. Spending on social programs also rose significantly during this period. At the same time, the oil embargo and rising production costs added to the increase in consumer prices while generating a recession.<\/p>\n

<\/p>\n

Today, the ongoing COVID-19 pandemic represents a major driving force in creating inflation rates not seen since the 1970s, including panic-driven hoarding of staples and supply chain disruption. In addition, multiple rounds of stimulus cash created gaps in many segments of the labor market, especially among essential workers in the service and medical fields.<\/p>\n

Recruitment and Retention Challenges
\n<\/strong>Combined with low unemployment rates, stagflation creates intense challenges for businesses. Rising wages due to inflation combined with the economic uncertainty of a recession can be a nightmare for recruitment. Increased competition means that the best talent commands top dollar, making it hard to compete with other businesses for that talent. At the same time, cost increases often necessitate layoffs, pay cuts, and downgrades in benefits \u2013 which may also inspire workers at all levels to look elsewhere. Re-evaluating positions and wages and focusing resources on essential functions helps companies remain competitive for top talent in mission-critical areas. Working with an expert like Employco can help you find more efficient ways to evaluate and train your employees, help optimize your workforce and minimize money spent on retention and recruitment activities.<\/p>\n

Need to Streamline Processes and Optimize Workflows
\n<\/strong>Companies dealing with stagflation must often choose between two problematic options: passing along costs to already cost-strapped consumers or cutting wages and benefits in a tight labor market. One strategy for minimizing costs is to focus on ways to streamline processes and workflows internally to eliminate inefficiencies in your operations. Working with an HR outsourcer, like Employco, can help you find the right places to streamline your workflows or bring on new tools to maximize efficiency and reduce costs. This translates into a more stable, predictable budget while maintaining the same quality in your services and products.<\/p>\n

Managing Cost increases and Optimizing Cash Flow
\n<\/strong>In a challenging economy, companies need to re-evaluate their expenditures and streamline operations to reconcile their circumstances with the economic pressures they face. Innovative approaches to operations, such as outsourcing or automating certain functions, can translate to significant reductions in costs for things you already offer or need. Revising your benefits package to offer more voluntary benefits can help increase your company\u2019s attractiveness to prospective recruits with minimal cost increases. Becoming part of a bulk purchasing group can allow you to offer the same level of benefits at a lower overall cost. Outsourcing your company\u2019s HR functions to a partner like Employco can translate to significant reductions in expenditures \u2013 freeing up funds that can help optimize your cash flow.<\/p>\n

Employco works with clients to help rein in employee costs and streamline internal processes to keep you competitive in a challenging economy. Contact us<\/a> today to learn more about how Employco can help your company cope with the oncoming threat of stagflation.<\/p>\n","protected":false},"excerpt":{"rendered":"

For workers in their 50s or younger, the term stagflation may be unfamiliar. But anyone who experienced the combination of high inflation and recession in the 1970s is well-acquainted with this unfortunate economic phenomenon. The factors that produced stagflation are… <\/p>\n

Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-4131","post","type-post","status-publish","format-standard","hentry","category-hr-solutions"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"\r\nWhat Does Stagflation Mean for the HR Side of Your Business? - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2022\/08\/08\/what-does-stagflation-mean-for-the-hr-side-of-your-business\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"What Does Stagflation Mean for the HR Side of Your Business? - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"For workers in their 50s or younger, the term stagflation may be unfamiliar. 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When June\u2019s jobs report was released last Friday, it revealed that employers hired more workers than expected. While this was good news, it also gave the Federal Reserve the justification to raise\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4167,"url":"https:\/\/www.employco.com\/blog\/2022\/08\/18\/podcast-the-hr-side-of-inflation\/","url_meta":{"origin":4131,"position":1},"title":"Podcast: The HR Side of Inflation","author":"Employco USA","date":"August 18, 2022","format":false,"excerpt":"On this month\u2019s HR podcast Rob, Scott, and Jason cover the HR side of inflation. 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They touch on the big recovery, more attendees returning, shows filling up faster,\u2026","rel":"","context":"In "Podcast"","block_context":{"text":"Podcast","link":"https:\/\/www.employco.com\/blog\/category\/human-resources\/podcast\/"},"img":{"alt_text":"Podcast: Trade Shows \u2013 Where We\u2019re at Now and a Look into the Future","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Podcast_Trade-Shows-Now-And-Future.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Podcast_Trade-Shows-Now-And-Future.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Podcast_Trade-Shows-Now-And-Future.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Podcast_Trade-Shows-Now-And-Future.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Podcast_Trade-Shows-Now-And-Future.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":3900,"url":"https:\/\/www.employco.com\/blog\/2022\/05\/12\/the-effect-of-inflation-on-your-employees\/","url_meta":{"origin":4131,"position":4},"title":"The Effect of Inflation on Your Employees","author":"Employco USA","date":"May 12, 2022","format":false,"excerpt":"Inflation affects us all in various ways, including higher prices at the gas pump and increased prices on everything from rent to groceries and utilities. One of the critical effects of inflation that significantly impacts businesses is how it affects your employees\u2019 bottom line. Inflation has a direct effect on\u2026","rel":"","context":"In "Employee Benefits"","block_context":{"text":"Employee Benefits","link":"https:\/\/www.employco.com\/blog\/category\/employee-benefits\/"},"img":{"alt_text":"Inflation","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Inflation.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Inflation.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Inflation.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Inflation.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Inflation.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":4249,"url":"https:\/\/www.employco.com\/blog\/2022\/09\/29\/hr-chat-w-employco-usa-2022-second-half-hr-trends-to-monitor\/","url_meta":{"origin":4131,"position":5},"title":"HR Chat w\/Employco USA: 2022 Second Half HR Trends to Monitor","author":"Employco USA","date":"September 29, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=T9wYncnJlzI In this video, Rob and Jason discuss current HR trends. 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