The vulnerability is two-fold. First is the immediate exposure. Without enough employees to serve customers, companies will lose business to their competitors. Too much defection by fickle customers will impact cash flow, productivity, profits and investor confidence. The second vulnerability is more long-term.
Economists suggest the slow-down that some call a recession is just a temporary slowing of growth.
The underlying economy is strong and will pick up again soon. Employers who reduce staffing levels will find it difficult to recruit replacements for the departed workers. Recruiting costs will be unexpectedly high, threatening the companies' profit potential. Recovery for these employers will be slow, or even impossible. Employers who retain their people during the slower times that may be ahead will have an advantage, particularly if they invest this slack time in retraining.