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200 Managing Customers Through Economic Cycles

significant layoffs. In addition, they have reduced their pro-
duction capabilities. If the economy recovers quickly, the
biggest challenge will be to manage the quality of output
because you have hired people quickly who are still in the
learning mode.

Use downturn times to train

By increasing the amount of training remaining employees
receive during slow economic periods; a business can reduce
the “catch-up” time needed with a recovery (and the poten-
tial hiring and rehiring of employees).

Recognizing the mentoring of new employees

Another initiative that can add value in speeding up a new
employee’s time to full productivity is mentorship.

A large bank in Canada recently relaunched their recogni-
tion of the importance of mentorship of new employees.
This recognition is important in any economy: it is particu-
larly important in recovery and prosperous times where
employment is plentiful.

The cost of a new employee is significant for any business.
The new employee will require at least two hours a day
initially of supervision by a senior member of the staff. They
will also require roughly two weeks of one-to-one mentoring
on the job. In addition, the first month where they are
working on their own will still require many questions being
answered by someone who is experienced. This first month
also is a period where many mistakes are being made which
puts pressure on the new employee as well as other cow-
orkers. All of this additional help takes resources. This is
why it is critical to reward the people who are helping new