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Managing the Ripple Effects of Strike Action: Three Strategies for Businesses

Over the last few months, we’ve witnessed a rising wave of strike action and unrest not seen since the 1980s miners’ strikes. Action has been taken by people across several different industries including rail workers, teachers, academics, NHS staff, Royal Mail, Border Force, and the Civil Service staff, with more announced for the coming weeks.

Whilst companies with striking employees will be the most negatively affected, this action is causing concern and disruption across most businesses.

According to economists at the Centre for Business and Economic Research, the strike action is expected to cost the economy close to £100m, with absences among those who cannot work from home and rely on the train network to commute, costing an additional £26m.

With expected long-term disruptions the impact is not just being seen in financial turnovers, the loss of clients, and employee absences, but also in employee productivity, morale, and engagement. Just as businesses are suffering due to these strikes, employees are also struggling with potentially devastating disruptions to their commute, caring arrangements, healthcare appointments, emergency healthcare, and long-awaited holidays.

So, how can organisations support their employees and maintain productivity?

  1. Take a flexible approach

As a result of the Covid pandemic, businesses and individuals alike are generally better placed to cope with ongoing disruption. Moreover, for companies that have adopted flexible working, or are able to introduce some form of flexibility, the impact will be felt less. Enabling and helping your employees to work from home means they can avoid travel disruption, and as a company you can maintain productivity and performance.

Flexible working is not just about location. Providing flexibility in how, when, and where employees work will also lessen the impact of these strikes. With teachers and NHS staff striking some of your employees may be struggling with childcare, caring for loved ones, or navigating moving appointments. Enabling them to adjust their hours of work will show you care and want to support your colleagues, but again means the work still gets done.

Unfortunately, not all businesses can take a flexible approach, particularly those in the hospitality, leisure, and retail industries. In these instances, it’s important to understand the personal circumstances of your employees and find a solution that works for both of you. You may also consider:

Agreeing with employees to take a period of annual leave.

Agreeing with employees that they should use any banked time off in lieu.

Covering the cost of alternative accommodation or transport.

Re-arranging shifts, where possible.

Changing core hours employees need to be onsite.

Taking the time to understand the difficulties your people face and working to find a solution will build goodwill, loyalty, and commitment. Following this, your employees will want to support the business in return, and ultimately performance should not suffer.

  1. Keep listening and communicating

As with any period of uncertainty, disruption, challenge, or crisis, regular transparent communication is critical. Communicating effectively with your people will ensure they understand what is expected of them, what the needs of the business are, and what support is available to them. It’s also important to communicate frequently, as the strike action is a dynamic situation and things can change overnight.

At the same time, it’s just as important to listen and understand how the strikes will impact your people, and provide opportunities for two-way engagement and feedback.

It’s important to remember that for some – particularly in those sectors that can’t easily adopt a flexible approach and whose performance is heavily impacted – this environment can drive concerns around job security. Consequently, line managers have a key role to play in reassuring colleagues, understanding their personal circumstances, and discussing the most effective way the strikes can be navigated for both the individual and the business.

  1. Remember to check-in on your people

Employees may already be feeling stressed, burnt-out, and over-worked. This is only likely to be further exacerbated dealing with the fallout from strikes. Not only is the impact on all of our working lives, but for many it will also be impacting their lives outside of work – causing mental, physical, or financial distress. Parents will be managing childcare arrangements or concerned about how the university strikes are affecting their children far from home; people may be worried about their loved ones’ health with paramedics, doctors, and nurses standing at the picket line; or people may have long anticipated and expensive holidays delayed or even cancelled by the striking border force.

In addition, teams may be under greater pressure if they are having to cover the work of others, whilst leaders will be trying to juggle resources, ensuring client/customers’ needs are being met, and that the business can continue to perform.

Businesses should:

Encourage line managers and colleagues to check-in on each other.

Be empathetic and listen.

Remind colleagues of the well-being support available to them e.g., Employee Assistance Programmes, well-being apps, mental health or financial support.

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By helping your employees’ overall wellbeing, you are in turn protecting, as much as possible, their productivity and commitment to the organisation.

The ongoing strikes have created a difficult economic and social environment for businesses to work in and people to live in. By working together, understanding each other’s needs, and providing an element of flexibility where possible, businesses and individuals can navigate the disruption with limited damage to morale, engagement, and performance.

By Arabella Kofi, Employee Communications & Engagement Executive

Posted in UncategorisedTagged in , , ,

Supporting your people during a recession

As the Bank of England warns that we could be facing our longest recession since records began, with the economic downturn expected to extend well into 2024, many businesses are facing rising costs, shrinking profits, and tough decisions. Similarly, employees are worried about soaring prices, a string of redundancies they’ve seen at high-profile companies, and uncertainty over what comes next.

Leading executives across high-growth businesses are telling us how concerned their employees are about the cost of living. In a study conducted for Hawthorn earlier this year, they told us that employees were worrying about the recession, a lack of job security, risk of redundancy, recruitment freeze, lack of pay increase, and employee retention.

The companies that will best weather this storm and come out the other side in the strongest position, are those that protect their greatest asset: their people. But what can a company do to support their employees during a recession?

  1. Talk to your people

At a time like this, it is critical to communicate regularly, consistently, and transparently with your employees. Talking openly and honestly about the company’s current situation, performance, market conditions, and plans for the future, on a regular basis, will keep employees engaged and make sure they’re in the right headspace to weather the current storm.

  1. Listen to your people

At all times, particularly during times of uncertainty and stress, employees need to feel heard. Company forums can be used to capture employee sentiment and employees should be involved in the decision-making process and co-creating solutions to the company’s problems. This is a great way in which a business could find some of the most innovative responses to the problems they are facing. co-create the solutions with them. When people feel trusted and needed and an integral part of the team, they become more committed to the organisation and its success.

  1. Avoid redundancies where possible

Don’t panic and rush to make redundancies. Some will say they are inevitable, but sometimes they can be a false economy. A string of lay-offs can have a wide and lasting impact on an organisation – not just those who are laid off. If not managed carefully and thoughtfully, redundancies negatively affect employees who are left behind. There are alternative options to be considered before landing on redundancies. You can read more in our article Definitely not the separation we would have wanted.

  1. ‘Working harder, with less’ is not the answer

If a company does have to make redundancies, introduce hiring freezes, or slim down resources, it’s important to adjust an employee’s expectations. Companies will need to communicate what the organisation is doing to ensure everyone can still do their job, at the same time as trying to save money by streamlining processes, systems, and driving a bigger programme of efficiencies. People will need to understand what these changes mean for their workload, priorities and how the organisation is going to adjust; a company can’t expect employees to continue working as hard as before on fewer resources.

  1. “Working harder, for less” isn’t the answer either

During an economic downturn, companies will inevitably need to make savings somewhere, however the best companies will ensure that their people are adequately rewarded for their work. Companies should take time to review their employee value proposition to ensure the benefits of working for their organisation are relevant for employees and are in line with their needs during this time. Even though money is tight, and businesses may not be able to offer employees a pay rise, companies must explore other routes to show financial support – such as benefits. Doing so will go a long way in boosting team spirit and showing people they are appreciated.

  1. Upskill your employees

Upskilling and reskilling your people will not only help to fill any experience or skills gaps as a result of turnover, redundancies, or hiring freezes, but it will also help support employee engagement and retention. This is because the company is showing their employees that even though the economy may have stalled, their careers have not. Ensure your employees know what opportunities are available for them to take on new roles or leadership positions, step-up, take on stretch assignments, and receive/provide mentorship.

  1. Empathetic leadership

Leaders – at all levels – are one of any company’s greatest assets when it comes to shaping the culture people and the organisation need to thrive. It is essential they are equipped to support, lead by example, and effectively communicate. People will be looking to their leaders for support and reassurance. Thoughtful leadership during challenging times builds the kind of loyalty that retains employees.

  1. Wellbeing

Employees may already be feeling stressed, burnt-out, and over-worked. In fact, according to the World Health Organisation, in the first year of the pandemic the global prevalence of anxiety and depression increased by 25%. This is only likely to be further exacerbated by entering the longest recession since records began.

Companies need to ensure they are clear about what support is available for their employees, who they can speak to, and what wellbeing initiatives are available to them. There are also small things that can be done like ensuring people take their holiday and creating time to take a break and connect as a team.

It will be critical for companies to really focus down on these areas to retain a strong workplace culture and avoid low morale, poor engagement, and to retain their people. Employees need reassurance, a supportive environment, and to know that you are all in it together.

By Sarah-Jane Wakefield, Head of Employee Communication and Engagement, and Arabella Kofi, Employee Communication and Engagement Executive

Posted in UncategorisedTagged in , , ,

Definitely not the separation we would have wanted

Those were the words of Stripe’s CEO Patrick Collison as he announced a 14% reduction in the size of his team. Redundancies are becoming a daily feature in our news, particularly amongst the tech industry and fast-growth businesses. With the likes of Twitter, Meta, Lyft, Netflix, Microsoft, Tesla, Amazon, and Salesforce, (the list goes on…) all making a string of layoffs in the face of uncertain economic conditions, some will say that redundancies are inevitable, but are they wise?

It’s not uncommon for fast-growth businesses like these to fall into the trap of hiring too many people, too quickly in periods of boom only to find themselves overstaffed in periods of stagnation or decline. But with a looming recession all companies are going to need to make difficult decisions. According to new research from ACAS, one in five employers are considering making employee redundancies in the next year.

However, even though redundancies have always been a reality of the economy, the effects are far-reaching – so they should only be the last resort!

Are redundancies a false economy?

According to the CIPD and KPMG, making a person redundant costs on average £10,000 and for some businesses even more than that. It’s not a short-term cost saving.

More importantly though, when the economy rebounds, businesses find they have a huge problem: a reduced workforce lacks the manpower and skills to effectively take advantage of the improving economy and can hamper a business’s ability to recover. It’s also not uncommon for businesses to hire back many of the people they fired – Twitter found this out earlier than most – and it can be quite an expensive endeavour!

Furthermore, the UK’s current skills shortage means it’s taking longer to fill critical positions, and this will only be made more difficult by the damage a large redundancy exercise can have on a businesses’ reputation and employer brand. Current and future employees will be watching closely, and many will think twice before working for an organisation they perceive doesn’t seem to care about its people and will make sweeping layoffs at the first sign of trouble.

…and what about those left behind?

Whilst redundancies negatively impact those who have been laid off, if not managed carefully and thoughtfully they also affect employees who are left behind. This has the potential to damage their trust in the organisation, lead to low morale, poor employee wellbeing, and a lack of engagement.

If handled badly, a wave of redundancies can also result in a leadership vacuum, inappropriate behaviour, a lack of transparency or sense of empowerment and no clear purpose. After a while, this can create fertile ground for a toxic culture to develop, stunting creativity, collaboration, and connectedness. Altogether, this reduces productivity and profitability at the worst time for the company.

What are the alternatives to redundancies?

Where possible, companies should exhaust all alternative options before landing on redundancies. It’s important to safeguard practices to ensure minimal damage and disruption for employees and the business.

One of the more common alternatives is the introduction of a hiring freeze and in recent months we’ve seen companies including Apple and Google announcing hiring slowdowns or freezes and those in turbulent industries such as cryptocurrency drawing back after a collective hiring binge.

Other options include:

  • Looking early for efficiencies and evaluating core processes and roles needed.
  • Identifying activities that are less essential or can be done more efficiently and effectively another way.
  • Reallocating people to new roles or tasks.
  • Introducing budget constraints.
  • Reducing hours of overtime.
  • Asking colleagues to take unpaid leave – for some this would be a more welcome option than losing their jobs.
  • Flexible working requests – reduced hours / days worked
  • Voluntary career breaks
  • Early retirement
  • Communication is key!

Regardless of whether a company decides to pursue redundancies or alternative cost-saving measures, dynamic leadership and communicating effectively is always important, especially amid uncertainty over the future. Being transparent about the challenges the company is facing and how it intends to overcome them will ensure workers are in the right headspace to weather the storm.

Make time to engage with people, explain the context and the vision, allow them time to process what is happening, and ensure there are processes in place to safeguard the emotional wellbeing of employees.

While such conversations are never easy, offering transparency lets employees know where they stand and what they need to do to maintain their roles and help the company through this period. These are challenging times for employers and employees alike.

But remember the decisions a business makes now will be remembered when the good times return.

By Sarah-Jane Wakefield, Head of Employee Communication and Engagement, and Arabella Kofi, Employee Communication and Engagement Executive

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