In times of economic uncertainty, like the one Nigeria is going through at the time of writing this article, employees face unprecedented financial difficulties. This significantly impacts employees negatively, affecting their financial stability, health, job security, mental health, and overall quality of life. Essentially, your employees are getting poorer, and their lives are getting tougher, due to no fault of their own.
Not like it’s your fault either, but HR professionals sure have a role to play to find a balance between ameliorating employees’ suffering and keeping the business afloat during an economic crisis. In other words, you have the responsibility to be ‘human’ – to focus on the human needs of your employees. This means that you need to help employees manage stress, maintain well-being, and provide them with opportunities for development. Also, you play an important role in helping the business survive during this time by focusing on employee retention efforts as well as helping companies ensure they remain profitable during downturns in the economy.
In this article, we will delve into the impact of economic crises, hikes in fuel prices, and how HR managers can support employees in an economic crisis.
As fuel prices surge, employees who work on site and rely on personal or public vehicles for their daily commute face a serious burden. The sudden 200% increase in fuel prices more than doubles their transportation expenses, forcing many to take long walks to survive. Today, the streets are filled with people trekking several kilometres to get to work. This is because some employees already struggle to make ends meet, so this additional financial strain is simply overwhelming for them.
And no, getting a bicycle or electric bike is not option for obvious reasons.
Economic crises tend to cause a decline in employee morale and motivation. On one hand, the fear of layoffs and financial insecurity can cause employees to feel undervalued and unappreciated, which, in turn, affects their dedication to their work. When organisations have financial issues, HR tends to look for ways to cut costs, and the employees are usually the first to bear the brunt. This leaves employees with four possible scenarios:
Each day becomes a darker struggle as they pour their energy and time, but get even less in return. Inevitably, it all takes a toll on their motivation and enthusiasm. As morale decreases, so does productivity. The result is a deep, unsettling sense of anxiety.
This should be front and centre of your strategies when dealing with economic crises. Conduct a comprehensive review of the organization’s salary structure and benefits packages to ensure they remain competitive and fair. In some cases, it may be necessary to implement temporary salary reductions or freezes to mitigate the financial impact. Consider offering alternative benefits or perks to compensate for the adjustments and maintain employee morale.
As established earlier, economic crises lead to increased stress and anxiety among employees. HR professionals should demonstrate empathy and offer emotional support to employees during these challenging times. Providing staff bus arrangements can ease financial burdens and commuting stress, helping employees to reach work without worrying about transportation expenses.
You can greatly improve the lives of your employees and the efficiency of your organisation by implementing flexible work arrangements. Work systems such as full remote work or hybrid work schedules empower your employees to strike a balance between their personal and professional lives. This leads to heightened job satisfaction and productivity levels as they manage their work lives more efficiently. This approach helps employees save on commuting expenses, such as fuel prices and transportation fees, which further contributes to their overall well-being and motivation. Embracing such HR policies fosters a positive work culture and strengthens employee loyalty, resulting in a more resilient and successful organisation overall.
Read more on 7 Benefits of Flexible Work Arrangements for Employees
It is important to recognise and appreciate the employees for their hard work and dedication, particularly during challenging times. This will significantly boost morale and job satisfaction. HR departments should implement recognition programmes that acknowledge outstanding performance and contributions. As an HR professional, your role in recognising and appreciating employee efforts goes beyond simple gestures. By taking a proactive approach, you can create a robust employee recognition programme that encompasses various aspects of appreciation. Consider organising monthly or quarterly awards ceremonies to publicly acknowledge outstanding achievement.
Implement a peer-to-peer recognition system where employees can nominate their colleagues for exceptional contributions. You can also introduce smaller daily or weekly gestures like personalised thank-you notes, shout-outs during team meetings, or even surprise treats to show your appreciation for their hard work. This does not only foster a collaborative spirit but also reinforces a culture of support and encouragement, thus inspiring a sense of healthy competition among employees.
Promoting health and wellness initiatives can help employees cope with stress and improve their overall well-being. Consider offering ergonomic assessments to ensure that workspaces are optimised for comfort and productivity. Small adjustments to chairs, desks, or computer setups can have a big impact on employees’ physical wellbeing and reduce the risk of potential health issues. Another aspect of supporting employees’ wellbeing is through comprehensive health insurance policies. As HR, you should ensure that employees understand the benefits available to them and can access necessary medical care without unnecessary stress or financial burden. By focusing on their needs and concerns, you create an environment where individuals can thrive personally and professionally.
As established earlier, economic crises lead to increased stress and anxiety among employees. HR professionals should demonstrate empathy and offer emotional support to those who may be experiencing difficult times. Acknowledging their stress and anxiety can go a long way towards making them feel valued and supported within the organisation. As a thoughtful HR manager, remember that sometimes a kind word or a listening ear can make a difference. Take the time to have open conversations with your employees, allowing them to express their concerns and fears without judgement. Letting them know that their feelings are understood and valid will create a sense of trust in your work environment.
Also, encouraging team-building activities or simply creating spaces where employees can come together and share their experiences can offer a sense of understanding. This sense of belonging can act as a powerful buffer against the negative effects of stress, promoting resilience and boosting morale throughout the organisation.
Conducting regular surveys to garner feedback enables you to effectively gauge the satisfaction and concerns of your valued employees. By actively seeking their input, you foster an environment of open communication and mutual respect, strengthening the bond between the organisation and its workforce. This valuable insight empowers you to address any issues or challenges promptly, demonstrating that you genuinely care about your employees’ well-being and job satisfaction. You can tailor personalised support strategies to boost productivity and overall employee morale with the reports from the survey.
In conclusion, HRs role during economic crises is to the employees and company. It’s not just about managing resources, but also about being a compassionate and proactive support system for employees. One powerful tool that can ease the burden on HR processes and foster a positive work environment during these times of economic crisis is NotchHR.
NotchHR simplifies HR processes with streamlined payroll computation, secure storage of data for informed decisions, and easy access to payslips and salary advances for employees. It also facilitates employee requisitions, attendance, and leave management, making it a comprehensive and efficient HR software solution.
With so much to do, NotchHR helps you ease work life so you can focus on what really matters: employees.