Worried about a recession? Here are some strategies to engage, retain and attract talent
There’s a 50/50 chance of Australia going into a recession later this year or early next year, according to AMP Chief Economist Shane Oliver. ‘Even if we don’t go into recession,’ said Oliver, ‘we will likely come close to it.’
Recessions can create significant challenges for businesses. The fear of a potential recession can see organisations losing clients and customers, leading them to cut costs or even let go of employees. Creating a resilient workforce is important in preparation for a possible recession so that you can continue to engage, retain and attract talent.
Here are a few strategies that can help you ride the economic downturn.
Offer transparency
According to LinkedIn research, People working at organisations with transparent communication are 77% more likely to perform better than their peers. Communication with your team is essential at any point in time, even more so when the economy is struggling.
The benefits of transparency:
increases collaboration
builds trust
encourages innovation
allows people to communicate openly
provides a safe space to share ideas
ensures that the whole team is kept up to date and properly informed.
Sharing the challenges faced by your organisation and the steps you’re taking to address possible issues will help build trust and reduce anxiety. It can also help maintain engagement levels because your people will feel they are a part of the wider organisation.
Invest in your people
During economic uncertainty, it’s important to make your workforce feel secure, so invest in their future.
Deloitte research found that a disengaged employee can cost their employer up to 34% of their salary.
You can help improve employee engagement by building a sense of community. Achievers have highlighted 5 pillars of belonging:
feeling welcomed
feeling known
feeling included
feeling supported
feeling connected.
Creating a community will help you build connections with your people, as well as with each other. A community will help form the foundations of a robust workforce that sticks together in the hard times as well as the good.
Another way to strengthen engagement is to prioritise employee development and training. Career development has been found to be a top factor in retention. A LinkedIn report found that 94% of employees would stay longer at an organisation if their employer invested in their career development.
Employee development will broaden the skills and capabilities of your team and help the organisation adapt to the changing needs of the business. If you commit to supporting your people’s careers, they will feel valued and want to stay with the organisation.
Promote wellbeing initiatives
A caring leader is a successful leader. Supporting employee wellbeing helps to alleviate stress and demonstrates a commitment to their overall welfare. In fact, a survey by MetLife found that 61% of employees said that better benefits and perks would increase their loyalty to their employer during a recession.
There are many ways you can offer support to your people to help them not just in economic uncertainty but at any stage. This can help alleviate increased pressure and stress your people might be experiencing.
Consider options such as flexible work arrangements, healthcare and wellbeing allowances, access to mental health resources and financial counselling services.
Strengthen your employer brand
Consumers are more likely to buy products from brands they trust. In a study by Edelman, 67% of people agreed that a good reputation may convince them to try a product. This relates to attracting and retaining talent. Recruitment is marketing. People are more interested in working for an organisation with a brand they trust. They’ll also stick around if they know they can depend on you.
To build a reputation that talent can trust, you need to create a positive employer brand. To do this, you must focus on highlighting your organisation’s values, culture and opportunities for growth. Demonstrate the strength of your workforce by showcasing the work people have done. Acknowledge your team, and make people feel valued. This morale boost will not only bring a sense of belonging but will also help to create a better employee experience.
Wrapping up
Preparing for a recession requires a proactive strategy. To engage, retain and attract talent, you need open communication, investment in your employees development and a strong employer brand.
If your organisation is struggling, don't forget your people. Your people are your business. Supporting your people will benefit you during challenging times and help you build a stronger workforce.
For more information about how to engage, retain and attract talent during challenging times, get in touch with the Heart Talent team.