Leaders should react to the looming recession by zeroing in on their workforce, not just their workplace, according to a recent article from the employee experience platform Great Place to Work.
Businesses tend to "recession-proof" by reducing expenses, but maintaining employee morale can keep performance up through financially turbulent times. It is important to understand the workplace's climate to ensure people do not leave once circumstances become challenging, according to the article.
Here are six ways employers can motivate employees through a recession, according to Great Place to Work.
1. Prioritize diversity, equity and inclusion. A study from Great Place to Work found that the experience of marginalized workers — including women, people of color, front-line workers, male hourly workers and long-tenured employees — can predict how a workplace will perform under strenuous conditions. Marginalized groups are usually first to see wage cuts and layoffs, according to the study. Paying attention to what is not working for these employees can illuminate areas that require improvement before those issues reach the wider company.
2. Begin listening to employees. Organizations can use surveys, town hall meetings, company intranet and chat tools and feedback forms to build trust and engagement before a recession. Leaders should then work to identify and close gaps, according to the article.
3. Allow employees to innovate. Innovation is key to surviving a recession, but it rarely takes precedence, according to the article. Listening to ideas at all levels, not just in the C-suite, can generate more ideas and 5.5 times the revenue growth, Great Place to Work found.
4. Follow through on promises. When the market is unpredictable, employees crave leadership that can deliver stability. Even if news is not positive, remaining transparent improves employee loyalty, the article said.
5. Reconsider your layoff approach. Laying off the most recent hire and promoting quickly to fill gaps tends to erase progress toward diversity, and can stifle essential voices according to Great Place to Work.
6. Allow employees to play a role in restructuring. Recessions tend to put teams in flux: Allowing workers to have a say in where they go can improve their psychological safety, according to the article.