31.01.2023Author: intentional practice
As a specialist inCareerAndOutplacement, I've been asked a lot lately if layoffs are on the horizon as world events, inflation, supply chain issues, energy prices and economic uncertainty push the global economy into recession. That's not a question I can answer, but maybe it's just a matter of perspective anyway.
Amid uncertainty about the local and global economic outlook for the coming year, Goldman Sachs recently upgraded its growth forecast for the economy this year, buoyed by slightly improving global economic prospects and the end of China's COVID-zero policy. Her upgrade was in stark contrast to Treasurer Jim Chalmers' somber tone, who believed the surprise abandonment of his COVID-zero strategy was a cause for further concern. The Australian Bureau of Statistics said last week that the unemployment rate held steady in December as the economy shed 14,640 jobs and the number of unemployed rose slightly. Some saw this as a sign the job market could be cooling, but even if the jobless rate held steady at 3.5 percent in December, the result was still a nearly 48-year low - a strong economic buffer. According to JP Morgan's 2023 Business Leaders Outlook Survey, business leaders across Australia are cautiously optimistic about the economy. More than half have a positive outlook on the global (59%) and national (59%) economy. Still, 46% of Australian business leaders said they expect a recession in 2023, although sentiment regarding the likelihood of a recession is lower in Australia than in other parts of the world such as the US, India, Germany and France. Rising costs in general are weighing on Australian businesses, with their main challenges being energy prices, increased capital costs and supply chain issues. Nevertheless, the expectation is high that sales will increase or remain the same in 2023. So much uncertainty!
Coping with recessions is part of leadership responsibility. What you say and do matters, especially when coming back from a dramatic change related to the pandemic. Covid has shifted things, accelerated automation and this is putting some low-skilled workers out of the job. In this post-Covid environment, companies are reorganizing, changing the way they work, becoming more efficient and employing better qualified employees. The tech industry has seen several widespread layoffs of late as companies rebalance their workforces after growing too quickly during the pandemic and misjudging the duration of this surge in demand.
The past few years have thrown up many obstacles and many of us feel burned out in more than one facet of our lives, so creating a culture of psychological safety and positivity is imperative. Inflation and a gloomy economic outlook are undoubtedly taking their toll on the workforce, creating anxiety and prompting professionals to consider career changes or seek higher-paying jobs. Recession fears and fears have prompted concerns or job insecurity and many are already actively changing careers or planning to do so. So we need to step up and help people channel their emotions towards a more positive attitude.
Thoughtful and empathetic leadership fosters engagement
Talk of recession and inflation inherently impacts our stress levels, health and well-being, however, in this uncertainty, companies can boost morale or prepare for a recession. It's important to encourage employees to maintain a healthy work-life balance and have sound strategies in place to help them stay motivated and determined. Even without a recession, economic downturns overwhelm us and create anxiety. As such, there is a high probability that employees are not engaged because they are too busy worrying about finances or job security, or are distracted by looking for work elsewhere. They may feel overwhelmed by day-to-day tasks, disappointed when raises and bonuses are suspended, or uncomfortable asking for a raise despite their financial strain. The cloak and dagger of uncertainty tests our resilience to cope with everyday stresses and demands.
thoughtful leadershipbuilds the loyalty that keeps employees and helps keep them engaged, productive and often even inspired during difficult times. The empathetic manager encourages autonomy and flexibility, giving employees challenging goals and assignments, training, access to a career coach, and resources to excel, all of which boost self-efficacy. Growth opportunities and team building activities help to form meaningful connections, just as helping individuals to feel valued, valued and developed fuels their motivation and inspiration as they achieve their goals.
Soften the blow with outplacement - a competitive branding strategy
Preparing for the inevitable downsizing is critical, especially as layoffs can occur during a recession or expansion. With economic change inevitable, companies and their managers must adapt to change, and investments in outplacement should be made ahead of upcoming downsizing. Outplacement can cushion the blow and provide security and support for the remaining employees who may be destabilized from seeing others lose their jobs. You may look over your shoulder and ask, "Am I next?" Helping employees through another challenging time is the right thing to do and will reflect well on your business when the economy recovers and you need to re-hire.
A culture preservation priority includes providing outplacement for those who lose their role and supporting those who remain, often referred to as survivors. These strategies play a key role in resolving any negative effects of job loss and making the transition process far less painful. This can improve competitiveness and add value to your employees, which is especially important as we still find ourselves in a very competitive recruitment market that requires a good corporate culture and brand to attract and retain talent. Instilling a sense of hope makes present moments and difficulties less difficult to bear. Offering outplacement is socially responsible and right, and it contributes to a positive exit from the business and alleviates anxiety among survivors. Losing a job can be a very destabilizing event as it involves loss of income, loss of work social network and loss of purpose. This is especially challenging if you've been with a company for a long time, and gets worse when a recession cuts job opportunities and entire industries are impacted.
Outplacement helps with accelerationprofessional transitions, with pragmatic support to help individuals find a new job, learn about the latest career trends and effectively structure their approach. It can provide a longer-term solution by closing one door and opening another, giving individuals a greater platform to transition smoothly into another role and advance their careers or skills where appropriate. The coaching helps individuals develop a plan, vision and focus where they can match their skillset to market demand and navigate the job search process in an empowered manner. Roles include strategic networking, building a quality marketing pitch and resume, social professional media presence, personal branding, and interview preparation and practice. When you invest in outplacement, you show your commitment to the well-being and future success of the departing employees. This demonstrates your organizational values and commitment to corporate social responsibility.
So whether it's about boosting morale or providing development opportunities through career coaching or executive coaching or supporting employees with outplacement, conscious careers,OutplacementAndcoaching servicesOffer tailored transition solutions to ensure your employees feel valued and recognized at all stages of the career lifecycle. To chat about this callDiana Kane, director careers on0418119975ordiane.kane@deliberatepractice.com.au