2020 has been a year of challenge and uncertainty and we are bracing for more in the new year. It’s important that we look to the lessons of the past to help prepare ourselves and our clients for the future.
TASC has weathered a few storms in our 45-year history. We’ve seen highs and lows; recessions and booms and we’ve endured them all. We know that following this unprecedented situation, the end won’t come with a vaccine. We will be dealing with the economic fallout of this for years to come. We are both looking to the past and relying on our innovative visions to prepare our organization and our clients for the future.
The recession and the pandemic are impacting the economy and the country in vastly different ways. From 2007 to 2009 our country faced the most significant decline in our economy since the 1930’s. The great recession hit everywhere and everyone. Financial institutions were among some of the hardest hit and the housing bubble burst, leaving millions in a lurch.
TASC saw an uptick in notices of clients canceling because they were shutting their doors. As a result of the number of clients shuttered, we felt it on our top line with an approximate two-point difference in our revenue.
During the recession, TASC stood resolutely with other individuals and businesses knowing we could, and we would weather this storm. We saw several bankruptcies devastate our clients; companies fell behind on claims as they struggled to stay afloat. One of the major repercussions of the recession for employees who retained their jobs were their benefits suffered. Companies had to cut costs and that often-included fringe benefits and benefits deemed “unnecessary”.
We worked hard to make the benefits that our clients and their employees valued and needed accessible and available so that companies could continue to offer them, and employees could rest easy knowing they were getting the benefits they not only needed but that were also helpful.
The pandemic has also affected everywhere and everyone. It has changed the way many businesses are managed. The industries that are hardest hit are far different from previous economic challenges. Those affected today are small businesses, brick and mortar companies and hospitality, not a typical TASC client. Because of that, we as a business, aren’t feeling the strain at the same rate as it relates to our top line.
However, we had to change and adapt to the shifts in our environment and adjust our way of doing business internally. Our employees have been hit at home and in life and we needed to evolve our business to accommodate that and help our employees thrive. That being said, our business was not as negatively affected as unfortunately many others were and are.
Ironically, the recession has had no bearing on the consumption of things like daycare or medical care other than the economic change. This time, we have seen a material change in the consumption of both those things. This is impactful to TASC because the transaction value, the account management and the card utilization lead us to stand up TASC Responds.
TASC Responds included specific account offerings that were targeted where people were being hit hardest and the need to plan for the unexpected. We were driven to adapt our services to the market needs that could then be absorbed into our overall service model.
We will do everything in our power to continue to build a sustainable organization so that we can continue to offer fair prices to our customer. With that said, we are not going to move away from making sure that we continue to extract the value for our organization that is commensurate with the value we are delivering. We are valuable in a down market and an up market.
Taking calculated risks has allowed us to excel during high points and challenging times that have tested our business.
During the recession TASC looked after our clients and looked at attracting new business when it seemed impossible and we took risks. We know that after surviving and thriving following the 2007-2009 recession, TASC is poised well to take on the challenges we will face in the wake of this pandemic.
This is a difficult time. Whether you are a business owner or an employee. There is uncertainty, confusion and the fact of the matter is, there are a lot of challenges ahead. TASC can take them on. We are looking out for the security of our employees, our clients and our participants and whatever we will face in the next year and beyond, TASC will confront it with strategic intention. We will move forward and we will take risks to help our company and our clients whether the storm.
TASC CEO Blog 