Economic Recession Tactics

Employee retention isn't about perks. It's about how you make people feel. We all go through tough moments: ➟ Companies still suffer from the recession. ➟ Many have had to make difficult cuts. ➟ More jobs will be automated. Free snacks, fancy offices, and ping pong tables can be fun. But they can't replace genuine appreciation. They won't fuel people's motivation. This is what people need right now: ✅ Leaders who listen ✅ Constructive feedback ✅ Recognition of achievements ✅ Encouraging open communication ✅ Ensuring every person is treated fairly ✅ Professional development opportunities ✅ Advocating for team needs to upper management ✅ Maintaining transparency during organizational changes ✅ Standing with the team, especially during hard times ✅ Shaping an environment of mutual respect and trust ✅ Protecting the team from unnecessary pressure ✅ Addressing concerns with empathy and action ✅ Collaborative teams that nurture belonging ✅ Supporting work-life balance with care ✅ A safe space to voice concerns freely ✅ Trust in the vision and direction ✅ Work that feels fulfilling Providing this kind of support is at the core of leadership. Focusing on what truly matters. Growing places where trust is the norm. Where people feel seen, heard, and valued. What's one thing you believe leaders can do to better support people? Let me know in the comments ⬇️ ♻️ Share this with a leader who needs to see what’s needed now. ➕ Follow Mike Leber for more.

How I Negotiated with a Monopoly Supplier and Saved My Company Millions As a procurement manager, one of the toughest challenges I’ve faced was dealing with a monopoly supplier—a vendor that was the only source for a critical material. With no competition, they had all the power. They knew we needed them, and they acted like it. When it was time for contract renewal, they dropped a bombshell—a 30% price increase. No alternatives, no leverage. Or so they thought. 🔍 The Problem: No Competition, No Bargaining Power I knew if we accepted the increase, our costs would skyrocket. But rejecting it wasn’t an option either—without their product, production would stop. 🚀 The Strategy: Finding Hidden Leverage Instead of giving in, I used three tactics to turn the tables: ✅ TCO (Total Cost of Ownership) Analysis → I highlighted inefficiencies in their supply chain and proposed joint cost-saving initiatives. ✅ Contract Restructuring → I negotiated longer contract terms in exchange for price stability. ✅ Risk Mitigation Plan → I explored alternative materials and started talks with R&D for potential substitutions. 📉 The Results? 📦 The price increase was slashed from 30% to 8%. 💰 We secured long-term fixed pricing for 3 years. 🚀 The supplier even improved on-time deliveries to maintain the partnership. 💡 Lesson: Even with a monopoly supplier, you still have negotiation power. Understanding their costs, restructuring contracts, and planning for alternatives can give you the upper hand. 👉 Have you ever dealt with a monopoly supplier? How did you negotiate? Let’s discuss in the comments! 👇 #Procurement #Negotiation #CostSavings #SupplyChain #SupplierManagement

$7,225 for one day of coding. And Cursor isn't even the worst example. Replit's margins went negative. Anthropic throttles its best users. I mapped pricing across 50 AI startups. Six distinct patterns emerged. The core tension: traditional SaaS has near-zero marginal cost per user. AI products pay for compute on every interaction. A casual Claude user costs pennies. A developer running Claude Code all day costs tens of thousands per month. Your best users are your most expensive users. That tension is breaking every pricing model in the market. Cursor charged a flat 500 requests/month. Worked fine until users leaned into multi-step agent workflows. They switched to credit pools. One developer burned 500 requests in a single day. The plan description changed from "Unlimited" to "Extended" twelve days after launch. Replit grew 15x in ten months ($16M to $252M ARR). But they were buying revenue with compute. When they launched a more autonomous agent, margins crashed to negative 14%. They had to invent "effort-based pricing" mid-flight. Anthropic played it differently. Their $17/$100/$200 tiers map to genuinely different user personas, not volume bands. A casual user and a Claude Code developer are different products with different willingness to pay. The lesson across all 50 companies: before you set any price, pull the cost distribution. What does your P10 user cost? P50? P90? If the ratio exceeds 10x, flat pricing will break. In AI products, it almost always exceeds 10x. Full guide with all 6 models, 4 case studies, and a decision tree: https://lnkd.in/gdKaQSMk

Employee retention is not about bean bags or pizza Fridays. 🍕 It’s about how people feel at work. In 2025, with all the uncertainty—layoffs, AI replacing jobs, and pressure to do more with less—people don’t stay because of perks. They stay because they feel respected, trusted, and valued. As HR professionals and leaders, here’s what really helps people stick around: ✅ Give them real chances to grow—upskilling, promotions, meaningful projects ✅ Communicate with honesty—especially during changes ✅ Show up as a human, not just a manager—listen, guide, support ✅ Don’t just talk about work-life balance—make it possible ✅ Recognize the effort, not just the result—both matter ✅ Be consistent and fair—favorites destroy trust ✅ Create a culture where belonging is real—not just on a poster ✅ Protect their mental space—cut the unnecessary pressure ✅ Stand by your team—especially during tough times People leave bad environments, not bad jobs. And they stay where they are seen, heard, and supported. Retention doesn’t need to be expensive—it needs to be empathetic. What’s one small action that helps your team feel valued? #employeeretention #leadership #workculture #HR #peopleFirst #workplacewellbeing #bestadvice #careers

Building financial resilience of your SMEs in facing economic uncertainty 🎯 I have seen in the past few months where Indonesia is experiencing unique economic situation. While the GDP continues to grow positively at around 5.1%, but there is also trend of decreased purchasing power especially among middle to lower income consumers that have made the business landscape become more dynamic 📉. For SME entrepreneur that focus their business on those consumer segments, they will need to adopt the right strategy in navigating such market dynamic. That means the traditional financial practices may not be enough to sustain your business and a resilient financial foundation has now become more essential. As Fractional CFO, I would suggest for SMEs to build financial resilience in navigating their business during these uncertain times.  Below are several strategies that can help build a resilient financial foundation of your business: 1️⃣ Stabilize your cash flow: Prioritize stable cash flow by continuously monitor your payment terms with clients and vendors. Keeping a close eye on cash flow is crucial in navigating economic uncertainty. 2️⃣ Build adequate cash reserves: Building a financial cushion can be the difference between navigating a tough month and facing a major setback. Aim for reserves that cover at least 3 to 6 months of your business fixed costs. It’s not easy, but small, consistent allocations can quickly add up and provide peace of mind during volatile times. 3️⃣ Effective cost management: In these challenging times, you need to focus on having effective cost controls instead of aggressive cuts. Identify essential vs. non-essential expenses and consider reinvesting saved resources into areas that have potential to drive long-term growth. 4️⃣ Implement solid financial controls: Establish robust financial controls, from regular budget reviews to forecasting under multiple scenarios. This forward-thinking approach can help your business become more agile in such uncertain times. 🤔 As SME business owner, how do you strengthen your business’s financial resilience in facing such dynamic market condition? Share your insights in the comments below. 🙏 If you're gearing up to scale your SME or early-stage business to new heights, let's connect. Together, we can explore strategies to optimize your business cash flow and strengthening your financial foundation. #ScalingUp #BusinessTransformation #Resilience #FractionalCFO

People rarely leave companies. They leave environments where they stop feeling valued. Retention is not a policy. It is an experience employees live every single day. No one resigns because of one difficult meeting or one demanding quarter. They disengage when appreciation fades, growth slows, or trust weakens. This visual beautifully captures what truly makes people stay: 💰 Fair Compensation Compensation is not just salary — it signals dignity and acknowledgement. 🤝 Guidance & Mentorship When leaders invest time in people, loyalty follows naturally. 🎯 Meaningful Challenge Talented professionals want to be stretched, not sidelined. 📈 Visible Growth Path Progression fuels ambition. Stagnation fuels exits. 🗣 Inclusion in Decisions Involvement builds ownership. Ownership builds commitment. ❤️ Recognition Appreciation is oxygen for motivation. 🔐 Trust Autonomy inspires performance far more than control ever can. 💡 Empowerment When people are trusted with responsibility, they rise to it. At its core, retention is not about perks or policies. It is about respect, growth, and trust — practiced consistently. For leaders, this isn’t an annual HR initiative. It’s a daily leadership discipline. #EmployeeRetention #LeadershipMatters #WorkplaceCulture #PeopleFirst #TalentLeadership #EmployeeExperience #OrganisationalGrowth

As economic conditions become increasingly unpredictable, professionals must strategically position themselves as indispensable assets rather than expendable costs.   After 25+ years in executive recruitment, I've observed consistent patterns during economic downturns: Companies retain employees who demonstrate measurable value across multiple business functions. The thread above outlines five critical competencies that consistently protect careers during workforce reductions.   These skills share common characteristics: Cross-functional applicability across departments and industries Measurable impact on operational efficiency and business outcomes Adaptability to changing business requirements Strategic value that transcends individual role descriptions   Key insight: Recession-proof careers are built on documented value creation, not job tenure or educational credentials.   The professionals who advance during challenging economic periods are those who: • Quantify their contributions with data • Improve systems and processes • Bridge organizational silos effectively • Adapt to technological changes • Document their problem-solving methodologies   This approach transforms individual contributors into strategic assets that organizations prioritize retaining regardless of economic pressures.   Sign up to my newsletter for more corporate insights and truths here: https://lnkd.in/ei_uQjju Which of these skills would strengthen your current position most significantly?   #executiverecruiter #eliterecruiter #jobmarket2025 #profoliosai #resume #jobstrategy #layoffs #jobsearch #careeradvice #jobsecurity #careertips #skillsdevelopment #skillstacking #skillbuilding

I have spent years in the highs and lows of the consumer goods industry but never seen a pricing climate quite like this. Manufacturers are getting squeezed from every direction-tariffs, skyrocketing raw material costs, and relentless supply chain disruptions. The old playbook of raising prices to cover costs? That’s dead. Why? Because consumers are feeling the pressure too. A 2024 Nielsen report makes it clear: today’s shoppers are scrutinizing every dollar they spend, and brands that aren’t strategic about pricing risk losing market share fast. Here’s what I’m seeing from top CPG brands that get it: 1️⃣ Walmart is investing heavily in AI-driven pricing models to keep costs competitive-e-commerce now makes up 18% of total revenue. 2️⃣ PepsiCo is doubling down on pack-size innovation, offering smaller, affordable options to maintain volume without excessive discounting. 3️⃣ Luxury brands are using price elasticity models, testing demand thresholds before rolling out increases-avoiding consumer pushback. 4️⃣ Supply chain resilience is non-negotiable. Companies are shifting manufacturing away from China, despite short-term cost spikes, to avoid future geopolitical risks. The smartest brands aren’t just reacting. They’re rethinking. They’re moving toward Revenue Growth Management (RGM) frameworks that help them: ✅ Optimize pricing and promotions (because blanket price hikes are a losing game) ✅ Focus on margin-smart growth, not just revenue ✅ Leverage data analytics to make smarter, faster pricing decisions Brands that don’t evolve risk eroding profitability or pricing themselves out of the market. CPG leaders who master strategic pricing, operational efficiency, and consumer-driven value creation will own the future of this industry. Are you adjusting your strategy, or just reacting to rising costs? Because in 2025, only the most adaptable brands will win. #CPG #FMCG #PricingStrategy #RevenueGrowth #ConsumerGoods

Here's a step-by-step breakdown on how to negotiate with a supplier (a playbook for your next negotiation)   You’re facing a supplier who’s increasing prices, and it’s threatening your margins.   This is exactly what one of my clients — a manufacturing CEO — was up against.   Here’s how I helped him turn it around:   1. Don’t Start with Price – Lead with Understanding   First, I told him: “I understand that you’re facing pressure too. Can you walk me through what’s changed on your end?”   By opening the conversation this way, he got the supplier talking about their challenges, not just about raising prices.   This put the focus on the problem, not the cost.   2. Ask for a Breakdown   You need the specifics on why the prices are going up.   “Can you help me understand the key factors driving this increase? I want to ensure we’re on the same page and can explore solutions.”   This makes it clear you’re not just passively accepting... But actively looking for mutual understanding.     3. Explore Alternative Solutions   Instead of just battling over price, ask about other ways to meet their needs without impacting your margins.   “What other solutions could we explore to offset these price changes?   Could we adjust order quantities, change delivery schedules, or modify terms to maintain the same cost?”   This opens the door to creative problem-solving that benefits both sides.     4. Use MESO (Multiple Equivalent Simultaneous Offers)   This is a powerful tactic where you offer a few alternatives that all work for you, giving the supplier options.   It helps you avoid a deadlock.     “We have a few options to consider:       1. Maintain the current price if we commit to a longer-term agreement.     2. Accept a 5% price increase but shorten the contract length.     3. A 10% price increase with better delivery terms.      Which option works best on your end?”   This lets them choose the solution that’s easiest for them while keeping you in control.     5. Highlight Long-Term Partnership Value   Make it clear that you’re in this for the long haul.   And you’re looking for a deal that benefits both of you.     "We value this partnership, and we want to continue growing it.   Let's work together to find a solution that makes sense for both of us in the long run.”   This builds goodwill and emphasizes your commitment to a strong, ongoing relationship.     My client saved 12% on operational costs and secured a long-term supplier relationship.   The key takeaway:   Don’t negotiate just on price.   Lead with understanding, ask for better terms, and propose a solution that works for both sides.   Ready to negotiate smarter? Let’s talk ---------------------------- Hi, I’m Scott Harrison and I help executive and leaders master negotiation & communication in high-pressure, high-stakes situations. - ICF Coach and EQ-i Practitioner - 24 yrs | 19 countries | 150+ clients  - Negotiation | Conflict resolution | Closing deals

The problem of underinsurance among businesses, especially SMEs, is often framed as a simple cost-saving versus risk trade-off. However, this oversimplification ignores the intricate factors leading businesses to underestimate their vulnerabilities and the devastating ripple effects of being caught unprepared. A concerning report mentioned that 85% of MSMEs in India are uninsured! Moreover, many insured businesses have taken a policy only because it is mandated by a regulatory. Adding to this issue, I have witnessed multiple businesses that use insurance as a risk mitigation tool find their policy useless with inadequate coverage when facing a complex claim. Hidden liabilities are probably the most common reason behind such situations. Businesses are lulled into a false sense of security, only to discover the gaping holes in policy exclusions once a disaster strikes. The worst part is that such losses don't happen in a vacuum. Underinsured companies delay supplier payments, miss payroll obligations, and break contracts due to extended downtime. This sends tremors through the entire network they rely on. The true cost goes beyond immediate losses. It leads to stalled growth, lost opportunities while scrambling to recover, and a tarnished reputation that lingers long after the initial crisis. There’s a lot businesses can do to avoid such situations. The problem is not limited to saving costs on low premiums with inadequate coverage, or lack of awareness. The problem lies in bad strategic decisions. Many businesses, especially those with substantial tangible assets, underestimate the complexity of valuation in the modern economy. Outdated valuations often focus on physical assets – property, equipment. But what about lost revenue during downtime, the cost of data recovery after a cyber attack, or reputational damage that impacts future deals? Let’s unfold more layers. Businesses that depend on a network outside their direct control may have standard insurance coverage. But what do they do when their vendors are uninsured and suffer a major disruption? Managing risks in a volatile market isn't a simple accounting exercise. It needs to account for sector-specific risks and evolving threats to arrive at the true level of insurance protection required. Here's where a mindset shift is crucial. Treat your broker as a translator, not just a seller. Insist on plain language explanations of exclusions, and actively model how different policy options play out in 'worst-case' scenarios. Negotiate customisation to factor in that worst-case scenario, and be prepared to pay a premium for it. Use annual meetings to present changes in your business – new markets, technological shifts – and demand the insurance evolves in step. Indian businesses can't afford to view insurance as a sunk cost. It's an investment in securing the future. Take command of your risk profile and quantify the unknown to fill potential coverage gaps. Policybazaar For Business