Top of mind

As we roll into 2023 with great plans and aspirations, it’s hard to ignore the doom and gloom of the daily news cycle warning us about the impending recession. One hundred thousand tech jobs were cut in January in the USA alone! And then there’s the soaring cost of broccoli! In workplaces throughout Aotearoa, employees are bound to be worried about what this all means for them. Are our jobs safe? When will we know?

It’s a cliché to say it, but right now, communication with our people is critical. There are questions they need to have answered about how their employer is planning to navigate the next 12 months and beyond. In addition, employees will be facing their own daily stresses, and their employers need to be aware of these. Successful two-way communication is vital to success in meeting the challenges ahead.

For many organisations, of course, the environment is constantly changing, and it can be challenging to communicate a plan to their employees that provides complete certainty.

This seems to be the case now, as it was back in 2020 when the COVID-19 pandemic response began. Nobody quite knows how a recession will unfold and what the severity of it might be. The best that organisations can do is to develop scenarios, agree on priorities and take steps to position themselves for the most likely eventualities. It’s possible in times like these to communicate to employees what the organisational priorities are and the principles they will follow as they navigate the various scenarios ahead. This can include being very transparent about how any changes to staffing levels will be handled and what would trigger those changes.

Some employers can be reluctant to share this type of information. Perhaps they are concerned about being held accountable for perceived promises, or about losing talent if their employees see the prospect of reducing staff numbers in the future.

In my experience, employees respond to open and honest communication by showing greater commitment, including working with their employer to overcome the challenges being faced. Employees who trust their employers to provide open communication also tend to be more flexible about their own needs.

As we navigate potentially rocky economic waters, it pays to remember that there is still a global talent shortage. Every organisation needs its best possible talent to help them realise the opportunities and tackle the threats of challenging and uncertain times. We should never forget that our best talent is concerned not just about how they are treated personally but also about how those around them are treated. There will be many organisations out there considering heading down the retrenchment path. It will be essential to take a long-term view and make sure, in the process of laying off staff, we’re not also undermining the organisation’s capability to survive beyond the short-term impact of any recession. Our approach to this challenge will surely determine the culture we create and the capability we are left with for the future.

Nick McKissack Chief Executive HRNZ Nick.McKissack@hrnz.org.nz