Experts predicted a recession, but the current economic slowdown has been steeper and more widespread than expected. Inflation is now the highest it’s been in decades, and businesses are experiencing the most significant drop in profits since the start of the COVID-19 pandemic. Furthermore, 50% of companies* have experienced a rise in employee turnover in the past six months.
Despite the difficult situation, many organizations are still optimistic about the future. 91% of HR leaders* say their companies are ready and well-positioned to brave the unfavorable economic conditions, indicating that it’s possible to weather the storm if you have the right strategies.
How can you reinforce workplace culture and keep positive in challenging times? Our State of People Enablement Report shows organizations that invest in their employees feel better positioned to manage turbulent times and see a 10%* increase in retention. Indeed, it’s vital to maintaining a strong and adaptable workforce.
To get better insight into the tactics deployed by successful organizations right now, we’ve spoken to four HR leaders to learn what resilience-building strategies they are using to navigate these tumultuous times.
Leapsome State of People Enablement Report, 2023
What is workplace resilience?
Workplace resilience refers to an organization’s ability to anticipate, prepare for, and withstand disruptions. Sometimes this can be through times of crisis, like the recent COVID-19 pandemic, but companies also need to adapt to more minor bumps in the road. For example, current developments in AI are leading to feelings of uncertainty in many industries, something that HR leaders are navigating.
Building a resilient workplace culture is crucial if your people will manage various upheavals relating to economic uncertainty. Potential challenges include:
- Reduced budgets — Teams may have their budgets slashed and be expected to find ways to ‘do more with less.’ Budgets for employee perks and team events might also suffer.
- Understaffing — Team members may be working at an increased capacity due to hiring freezes or layoffs.
- Lack of clear direction — Companies may face difficulty making strategic decisions with increased risk and uncertainty from an ever-shifting landscape.
All these factors have an adverse effect on company culture, decreasing job satisfaction and reducing engagement levels. Tellingly, there’s a strong correlation between employee happiness and organizational resilience — a study found that 86% of team members who agreed morale was high at their company also said they were prepared for the recession. Only 42% who described morale as ‘poor’ thought the same.
How can you build an organizational culture that can withstand economic upheaval, significant change, and shifts in the work world? We spoke to four HR leaders to learn how they foster strong and supported teams during these turbulent times.