3 Ways HR Leaders Can Get Ahead of a Recession

Three-quarters of HR leaders are worried about the coming recession, according to the latest research from the Achievers Workforce Institute.?

Attracting, engaging, and retaining the right employees increases the likelihood of success. Preparing for this looming recession requires that HR leaders invest in their people and build an HR strategy that centers on employee engagement.??

The top 3 ways HR leaders are preparing for the possible recession are by focusing on the following:?

1. Initiatives that improve productivity?
2. Focusing on high priority hires?
3. Initiatives that improve retention?

However, 15% of HR leaders said they were doing nothing to prepare for a possible recession, meaning 1 in 6 companies could be left behind if the economic predictions come to pass.?

Luckily, HR can do a lot to move the needle on productivity, attraction and retention. ??

1. Improve productivity?

Organizations are getting leaner. When asked how they were preparing for a possible recession, the #1 answer from HR leaders was a focus on initiatives to improve productivity. There’s no question that enhancing productivity is top of mind for employers, who are looking for high-impact ways to do more with less.?

That said, productivity is difficult to measure, making it hard to meaningfully impact. In this research, the Achievers Workforce Institute asked individual respondents to rate their own productivity. One quarter say they are their most productive selves at work, with 66% rating themselves as moderately productive, and 9% saying they were unproductive at work.?

4 steps to improve workplace productivity?

1. Recognition. The more often someone is recognized the more likely they are to report being highly productive.?
2. Feedback. Employees who say their organization takes meaningful action on feedback are almost 3 times more likely to claim they're most productive at work.?
3. Connection. Employees whose company supports them in creating and maintaining friendships at work are 2.6 times more likely to report being the most productive at work.?
4. Manager effectiveness. People who would recommend their managers are 2.1 times more likely to report being highly productive.?

2. Attract high priority hires?

41% of respondents said they would job hunt this year, according to the 2022 Engagement and Retention report. Career progression is the main reason respondents listed why they’d consider leaving.??

Opportunities for growth and development are crucial to candidates. Ensure your employer brand emphasizes growth and has clear career paths for every job level.?

3. Improve retention of top talent?

According to the 2022 Engagement and Retention Report, the #1 reason employees choose to stay with a company is work-life balance.?

Flexibility is something employees are increasingly demanding — for both online and offline workers. In the 2022 Culture Report, offline workers were just as likely to prioritize flexibility.?

Work flexibility is about empowering employees to have fulfilling work and home lives. Flexible hours and location for online workers and set shifts and personal leave for offline workers are great ways for employers to offer a consistent experience of flexibility for all their employees.?

Productivity, attraction, retention?

HR must focus on operating with lean teams, driving results and attracting and retaining top talent. From tools such as recognition and feedback, to career opportunities and flexible work, employees are no longer willing to compromise on the things that matter most to them.?