The current and projected state of the Canadian economy is a hot topic this summer. People are worried about inflation and recession. For your employees, these concerns are compounded with additional fears about job security. We can’t predict the future, but we can help you understand how the current economy is affecting your workplace and the steps you can take to minimize its negative impact.

Tip 1 – Create a staffing plan for employee success

Downsizing and attrition will affect workplaces across Canada this year. As employers look to save dollars by operating with lean staffing levels, an increased focus and investment must be directed toward the remaining staff. 

When positions are eliminated or departing staff members are not replaced, additional burdens are inevitably put on existing staff. Many organizations mistakenly assume that eliminating salaries is the best way to save money but that isn’t always true. By factoring in salary increases for remaining staff, companies can earn a significant return on that investment. When a fair and favourable total compensation strategy is in place, staff members will stay more engaged in their position, be more productive at work, and be less likely to leave. The recruitment process can be extremely time-consuming and expensive, with no guaranteed return on that investment. 

Our recommendations for employee success include allocating budget money to help retain current employees and looking for additional no or low-cost incentives. Examples include flexible work schedules, remote work, extra time off, and employee-driven training and development plans. 

Tip 2 – Focus on employee wellness

Employee wellness is one of the first things to be overlooked when organizations navigate challenging times. This can be a very costly mistake. Anxiety, fear, and uncertainty affect all of your employees to some degree. For many, this will escalate into more serious mental health and physical conditions. 

There are a few things you can do to support employees. First, connect with your benefits and Employee Assistance Plan (EAP) providers to find out how they are adjusting products and offerings to reflect the impact of the current economic climate. Second, ensure your employees know about the resources available to them through their benefits plans. We can’t stress this enough; you must regularly make the information available in various formats. Use email, the company website, social media, posters, and verbal communication to inform employees about what is available and how to access it.

Tip 3 – Check in with your Human Resources department     

Even though the word human is right in the department title, we often forget that human resources employees also struggle and need support. During economic downturns and recessions, this department bears the brunt of the burdens related to complex and emotional staffing and compensation issues. There is often an increase in interpersonal problems between employees, workplace investigations, and performance issues at times like this. Human resources staff spend all their time and energy taking care of everyone else before addressing their fatigue, burnout, and mental health. 

The management team can help the human resources department by removing some of their workload. Temporarily outsourcing tasks like investigations, policy and procedure manual updates, salary reviews, and recruiting can free up time and energy for them to deal with more pressing matters.

If we have learned anything since 2020, it is that workplaces that evolve alongside societal circumstances are more likely to thrive. What worked for your organization during boom times might not be effective in uncertain economic times. By addressing the impacts of what is affecting your employees, you can create a better workplace with plenty of opportunities for success!