You never know what the future brings. In a time of crises and disruptions, it is therefore necessary to prepare for multiple possible scenarios. We have gathered a number of strategies that you can make good use of so that you can retain your employees, dependent on whether the economy flourishes or is in a recession.
The daily life we know is disrupted, and that affects the economy. Two years of the pandemic with shutdowns of the society, the war in Ukraine, inflation, and towering energy prices have been hard for companies, and it has changed the conditions for how you run a business successfully.
It is a time of insecurity that not only affects companies and CEOs but also employees, who might worry about their employment down the line.
Crises set up new conditions for the future. But it is worth remembering that it can also be a stepping stone to new opportunities. “Never let a good crisis go to waste.” That is a phrase that the British prime minister, Winston Churchill, is said to have spoken on one of the the dark days during World War II. And there is truth to this statement, because it is during crises that new ideas and solutions are crafted. As is the case regarding finding natural leaders who can rise to the occasion.
We have gathered a number of useful strategies for retaining employees, so you can lead your company and your employees safely through times of economic booms and recessions.
When the economy is booming (or at least improving greatly), you can:
1. Focus on development of employees
When your company experiences positive economic progress, it is important that the employees feel it too. An obvious way to do this is by focusing on the development of the individual employee’s competences. This can e.g. be by offering courses and continuing education, new roles and responsibilities. Keep an eye on the future, and that goes for everyone in the company.
2. Be openminded and listen to your employees
As an addition to the point above, it is also important to listen and be openminded. It might be that the employee wants a raise, more work benefits, or just a bigger degree of flexibility in the daily working life. During economic booms there is a bigger surplus on the bottom line, and if the employees don’t experience the general upturn in terms of improved working conditions, there is a bigger incentive for them to look for a job at a different company. So listen, be honest and include the employee in the decision-making process. That gives a sense of ownership and increases commitment.
3. Strengthen the sharing of knowledge between employees and managers
To some employees it is associated with uncertainty to seek sparring or knowledge, and this is why they will most often talk to the colleague that they are most comfortable with, if they need professional input. In this case, it is your role as the manager/leader to create a safe space, where knowledge can be shared between managers and employees. Because, who knows, maybe the workflow and the routines can be more effective with professional sparring from the top or bottom?
4. Invite your employees to social gatherings
Events and gatherings outside of working hours make social bonds and create unity. It can have a positive effect on the job satisfaction and thereby also improve productivity.
Unfortunately, there are also many reasons to be prepared for changing times. When the economy generally is in recession, it is important that you can:
1. Retain your employees’ motivation
In times of financial insecurity, people often contemplate the future and worry about how they will get by. That also applies to your employees. It is then your job as the manager or leader to show your employees that you can still offer them a future, in spite of financial insecurity. This can be by offering alternative career paths or opportunities for personal and professional development, and you can focus on the positive aspects of the job that provide meaning in everyday life.
2. Strengthen the team spirit
One way that you can create sense of things is by strengthening the unity and team spirit at the place of work. This can be via teambuilding exercises, an increase in collaboration, or social gatherings. It is a proven fact that employees find joy and motivation in social communities and strong collegial relations. If the employees feel joy when showing up to work and being part of a community, they will also be less willing to seek out other job opportunities.
3. Communicate honestly
The team spirit can also span across various employment conditions and roles. By creating an open way of communicating between employees and managers, you can make frequent updates about the company’s economic situation and plans. Remember to be honest, openminded, and responsive in your communication. The communication channel will also give your employees the opportunity to speak their mind, just as it can be used for knowledge sharing, professional sparring and sharing all those ideas that can benefit the business. See to it that victories as well as concerns can be shared. This will also give you the opportunity to better lead your employees through hard times.
4. Give your employees employment security
Economic crises are never fun, and layoffs can be necessary when the budget is trimmed. What you can do as the leader or manager is to give your valuable employees safety through uncertain times, so they don’t fear getting fired without reason. This safety will also strengthen their loyalty.
Are you ready to improve the retainment of your employees? Then Talentech can help you!