Informing leadership through times of change

HiBob is a Business Reporter clientChange is an inevitable part of every organisation’s business journey. Sometimes it is positive and sometimes it is negative, but what matters is how an organisation deals with the change and handles its employees. Whether it is a rise in sales or a merger, redundancies or a period of economic downturn, companies that care about their people will pass through these periods to emerge stronger and better.In March 2020, when businesses had to furlough their staff or send them to work from home overnight, leaders were busy writing business continuity plans around how they would support customers through the unparalleled uncertainty that came with a real fear for personal and business health.However, if the past 24 months have shown us anything, it’s that people are much more resilient than we think. The ambivalence the world went through during the pandemic ignited creativity and growth and propelled the world of work forward in ways we could not have imagined.This new looming economic incertitude that may lead companies to take preventative action against possible global recession will have the same impact. Strong, well-managed companies will get through the storm, but it won’t happen by accident.During an economic slowdown, managing employees becomes complicated. When it comes to the unpredictable, employee retention plays a huge role in minimising losses for both parties. When the market is unstable, employees tend to feel unsafe and more likely to jump ship. For an employer, having to replace staff costs money.Welcome to a new cycle of change in business. While we don’t know how long it will last, we do know that what goes up must come down (and vice versa). So, what should we be doing for our people and businesses during this time?Keeping a finger on the pulse of your business is always critical, but it becomes especially true during times like these. You should be checking your efficiency parameters across sales, recruiting, R&D and marketing – look at expenses, offices and tools to decide if they’re a must, a nice-to-have or redundant.You need to also look at KPIs regarding your people and how these affect their overall happiness.The pandemic and subsequent Great Resignation showed that people are prioritising their work and personal lives in new ways. These changes aren’t going anywhere – even during an economic downturn. Retaining your people through flexibility, an appealing company culture and competitive compensation and benefits packages remains an advantage.Measure employee happiness through engagement surveys and monitor KPIs such as your employee net promoter score, career path ratios, salary changes and absenteeism rates. Keep your eyes on these numbers, carry on with the great things you’re doing and look for solutions to any challenges you may be seeing.In his recent article about the current downturn, industry analyst Josh Bersin said it best: ‘Now is the time to ‘select your workforce’ carefully. Just as investors want to buy the best possible stocks at the right price, now is the time to hire the ‘right people’ with the right compensation and benefits.’While many tech companies have been hiring like crazy in recent months, it’s time to pause and look at the open jobs you have and ask why you’re hiring for this role. Is this a mission-critical position that you need to fill right now, or can you wait a little? Has everyone been onboarded? Are the swim lanes clear? Make sure every person on the team is in the right position with the right responsibilities.Having open and honest conversations with your hiring managers and optimising your open positions will ensure you’re more targeted in your recruitment and hiring efforts.This is not to say that you should stop hiring or start laying people off. You should also look at the people you currently have and find places of internal mobility. After all, you can still grow as a business without growing your headcount. You may very well already have all the people you need. With a little reorganisation, prioritisation and focus on learning and development, you can promote from within to ensure your business needs are met.Your company is your people. It is critical during this time that you communicate openly and transparently with leaders and teams, so you don’t lose credibility with them. Be sure to get their buy-in for the changes and optimisations you will have to make and ensure they understand all strategic decisions.Keeping your people engaged and feeling connected to decisions being made, especially if you have staff working hybrid or remotely, is key to any healthy culture.If an organisation has a culture that promotes two-way communication, conversation, feedback and honesty, employees are much more likely to stick around. Aside from their income, they also value their time, respect and happiness. If you don’t authentically engage with your valued employees, an economic downturn might be the catalyst for them to start looking for a new job.A good approach would be to put yourselves in the position of your employees and be clear about what you are planning and why. Navigating such situations is what makes leadership difficult, but moments of hardship can also help shape the future of a company. Ultimately, when combined with strategy and purpose, a strong culture can be the foundation that underpins retention and protects against future trials.Have three minutes to meet Bob?Originally published on Business Reporter