{"id":13019,"date":"2022-09-30T10:00:00","date_gmt":"2022-09-30T09:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=13019"},"modified":"2025-05-07T14:55:20","modified_gmt":"2025-05-07T13:55:20","slug":"hr-support-economic-uncertainty","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/hr-support-economic-uncertainty\/","title":{"rendered":"Leading HR in times of economic uncertainty: How HR can support in times of change"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/people-leadership\/\" class=\"entry-header__link\">People &amp; Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tLeading HR in times of economic uncertainty: How HR can support in times of change\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-09-30T10:00:00+01:00\">30 September, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Leading HR in times of economic uncertainty: How HR can support in times of change\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/hr-support-economic-uncertainty\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/jessicafuhl\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2020\/10\/Jess-fuhl.jpg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Jessica Leyshon<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">Uncertainty is the only certainty.<\/p>\n\n\n\n<p class=\"\">This might sound bleak, but it\u2019s the current reality. <\/p>\n\n\n\n<p class=\"\">Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide, which is triggering tighter financial conditions, along with further negative impacts on supply chains from the war in Ukraine.<\/p>\n\n\n\n<p class=\"\">As the immediate future remains unknown, organisations are grappling with understanding the new normal.&nbsp;<\/p>\n\n\n\n<p class=\"\">With any downturn, business leaders are likely to be asked to shift focus away from growth towards profitability and cash flow, while keeping a strict control on costs.<\/p>\n\n\n\n<p class=\"\">Meanwhile, workers worldwide are dealing with the rising cost of living, soaring energy bills and the highest inflation rates for decades, which is having a direct impact on employee wellbeing. <\/p>\n\n\n\n<p class=\"\">In fact, <a href=\"https:\/\/www.peoplemanagement.co.uk\/article\/1796130\/money-worries-amid-cost-living-crisis-worse-pandemic-research-finds\">two-thirds (63%) of adults<\/a> are worried about their finances now, compared to one-third (36%) during the pandemic, and <a href=\"https:\/\/yulife.com\/blog\/money-and-mental-health\/\">57% expect their levels of financial worry<\/a> to continue to rise.<\/p>\n\n\n\n<p class=\"\">This worry translates into pressure on salary increases by employees seeking&nbsp;to offset the increasing cost of living. Yet at the same time, company bosses may be facing pressure to halt hiring and reduce headcount costs.<\/p>\n\n\n\n<p class=\"\">As organisations navigate ongoing uncertainty and&nbsp;unpredictability, business resilience really has never been more critical.<\/p>\n\n\n\n<p class=\"\">As caretakers of the organisation, there are multiple ways HR can support the business and its employees while building business resilience.  <\/p>\n\n\n\n<p class=\"\">In this article, we highlight five ways HR can respond during an economic downturn.<\/p>\n\n\n\n<p class=\"\">Here&#8217;s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"#manage\">1. Manage fixed costs tightly<\/a><\/li><li><a href=\"#increase\">2. Increase total compensation through variable cost incentives<\/a><\/li><li><a href=\"#offer\">3. Offer flexibility as a financial incentive<\/a><\/li><li><a href=\"#personalise\">4. Personalise employee experiences<\/a><\/li><li><a href=\"#implement\">5. Implement a financial wellbeing policy<\/a><\/li><li><a href=\"#behind\">Behind every downturn is the chance to innovate<\/a><\/li><li><a href=\"#better\">Better prepared and ready for changing priorities<\/a><\/li><\/ul>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-c02f527f-e767-45e4-bb44-cabb47548500\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-c02f527f-e767-45e4-bb44-cabb47548500\"\n\t>What does the future hold for HR leaders? We spoke to a range of experts to get their thoughts. Our HR in 2030 research report reveals what they think \u2013 and how HR leaders can prepare today. Download your free copy now.<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"manage\">1. Manage fixed costs tightly<\/h2>\n\n\n\n<p class=\"\">Your people are your biggest asset and therefore biggest cost \u2013 but keeping your top talent will pay dividends as they could be the linchpins that are needed to successfully ride out the economic storm. <\/p>\n\n\n\n<p class=\"\">Also, factor in the cost to rehire and retrain, and weigh up if you can really afford to lose your shining stars to competitors?<\/p>\n\n\n\n<p class=\"\">If you\u2019re fearful that valued employees might be at risk of being laid off, look at your data to see if you can create a strong business case for retaining them. <\/p>\n\n\n\n<p class=\"\">Any key performing indicators (KPIs) or productivity stats might be beneficial here. <\/p>\n\n\n\n<p class=\"\">Likewise, if their requests for a salary increase are going to cause them to leave, can you be smart and offer other incentives such as a <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/four-day-working-week-need-to-know\/\">four-day work week<\/a> or a training course or qualification if there\u2019s pressure on fixed costs?<\/p>\n\n\n\n<p class=\"\">Focus on productivity \u2013 ensure you\u2019re paying for performance \u2013 and look at ways to boost employee productivity in a sustainable manner.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"increase\">2. Increase total compensation through variable cost incentives<\/h2>\n\n\n\n<p class=\"\">During economic turbulence companies often put a freeze on pay increases, yet employees will be looking for ways to boost their income. <\/p>\n\n\n\n<p class=\"\">Use bonuses, stock grants and other incentives to offset lower base salaries, and offer gift cards or equivalent (company branded items, especially clothing) to help maintain motivation.<\/p>\n\n\n\n<p class=\"\">Be open and transparent about pay and benefits, communicating how the grading system works, and how wage levels and salary increases are decided. <\/p>\n\n\n\n<p class=\"\">If employees understand what\u2019s going on at the top, they are more likely to respond better than if they feel they are being kept in the dark.<\/p>\n\n\n\n<p class=\"\">Don\u2019t forget to remind employees of existing benefits your company offers \u2013 cycle to work schemes, for example, can offset the high cost of diesel and petrol \u2013 and any discount platforms your organisation is signed up to that offer reduced consumer goods.<\/p>\n\n\n\n<p class=\"\">Finally, consider wellbeing incentives, offer additional paid time off, and remember recognition and spot awards as additional ways of recognising successes in your workforce.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"offer\">3. Offer flexibility as a financial incentive<\/h2>\n\n\n\n<p class=\"\">It might feel like your hands are tied if the powers that be have put a clamp on costs and financial incentives, but think outside the box and remember that flexibility is a strong bargaining chip for most employees.<\/p>\n\n\n\n<p class=\"\">A shorter working week \u2013 condensing someone\u2019s hours into four days for example \u2013 or offering an employee the chance to work part time could hold a lot of weight with some employees. <\/p>\n\n\n\n<p class=\"\">Likewise, unpaid sabbaticals can be the perfect motivator for an employee who has been considering going travelling or taking some unpaid leave.<\/p>\n\n\n\n<p class=\"\">Although <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/hr-remote-employee-productivity-wellbeing\/\">remote working<\/a> and <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/hybrid-working-hr-guide\/\">hybrid working<\/a> feels like the norm, perhaps your company isn\u2019t offering it as freely as it could? Investigate to see if there\u2019s even more flexibility in the way employees work that could be offered as an incentive.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"personalise\">4. Personalise employee experiences<\/h2>\n\n\n\n<p class=\"\">Paying attention to how employees are affected by the significant increases in inflation, food, and fuel prices enables HR to understand the sentiment across the organisation. <\/p>\n\n\n\n<p class=\"\">You can then decide whether action should be taken at the organisational level or at a group or individual level to reduce stress and keep employees motivated, engaged and productive.<\/p>\n\n\n\n<p class=\"\">In fact, each employee may need to be managed slightly differently regarding the stress they are under, to keep them motivated and engaged, so creating personalised, tailored employee experiences is a smart move.<\/p>\n\n\n\n<p class=\"\">Adjust management styles and deploy situational leadership where necessary to suit individuals and teams or squads, and communicate early and often. <\/p>\n\n\n\n<p class=\"\">Being open and transparent in discussing company performance will make employees feel valued.<\/p>\n\n\n\n<p class=\"\">Providing employees with more autonomy in decision making where possible and creating a listening culture so you can act on feedback and communicate necessary actions or suggestions are all ways of generating personalised employee experiences.<\/p>\n\n\n\n<p class=\"\">Also look at offering stretch assignments, growth opportunities, and meaningful and worthwhile work, as well as automating low value or boring work.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"implement\">5. Implement a financial wellbeing policy<\/h2>\n\n\n\n<p class=\"\">Having a financial wellbeing policy that feeds into your wider wellbeing strategy will show your organisation\u2019s commitment to supporting employees with any money worries and concerns they might have. <\/p>\n\n\n\n<p class=\"\">It can be as simple as signposting your employees to independent money and debt guidance, making sure your staff are aware of all the benefits you currently offer, and normalising conversations about money worries at work.<\/p>\n\n\n\n<p class=\"\">Just under <a href=\"https:\/\/www.fincap.org.uk\/en\/articles\/key-statistics-on-uk-financial-capability\">40% of adults<\/a> (20.3 million) don\u2019t feel confident managing their money, and 11.5 million have less than \u00a3100 in savings. <\/p>\n\n\n\n<p class=\"\">Helping your workforce know where they can access free, confidential, and independent money advice could help some of them plan, save and make better long-term decisions.<\/p>\n\n\n\n<p class=\"\">Look at ways your own organisation can increase financial support to staff. <\/p>\n\n\n\n<p class=\"\">Some employers are considering commuter subsidies, hardship loans, support on maintaining pension and insurance contributions and counselling.<\/p>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-c02f527f-e767-45e4-bb44-cabb47548500\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-c02f527f-e767-45e4-bb44-cabb47548500\"\n\t>What does the future hold for HR leaders? We spoke to a range of experts to get their thoughts. Our HR in 2030 research report reveals what they think \u2013 and how HR leaders can prepare today. Download your free copy now.<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"behind\">Behind every downturn is the chance to innovate<\/h2>\n\n\n\n<p class=\"\">If 2020 taught us anything, it was how to deal with uncertainty in a constantly changing landscape. <\/p>\n\n\n\n<p class=\"\">HR leaders rose to the challenge and successfully navigated their organisations through the pandemic, proving their ability to be leaders of change. <\/p>\n\n\n\n<p class=\"\">In fact, <a href=\"https:\/\/www.sage.com\/en-gb\/human-resources\/hr-agility\/\">72% of HR leaders told us in recent Sage research<\/a> that the global pandemic has helped them demonstrate their value and increase understanding of HR\u2019s role. <\/p>\n\n\n\n<p class=\"\">Smart new ways of working, adaptability, flexibility, and business resilience are all just some of the positives to have come out of the last two years as companies innovated to adjust to the new norm.<\/p>\n\n\n\n<p class=\"\">The current economic downturn is no different \u2013 it provides the opportunity for HR and business leaders to continue to innovate and make positive changes. <\/p>\n\n\n\n<p class=\"\">Some might look to make bold, strategic moves, while others might strip back and focus on simple, cost-effective solutions. <\/p>\n\n\n\n<p class=\"\">Whichever camp you\u2019re in, sitting still is not an option. Change agility is crucial and HR is perfectly positioned to lead the charge again.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"better\">Better prepared and ready for changing priorities<\/h2>\n\n\n\n<p class=\"\">As HR and People leaders, adapting your organisation\u2019s culture to this new reality is critical. <\/p>\n\n\n\n<p class=\"\">The ongoing economic turbulence will impact individuals differently, including their relationship with their employer and colleagues.&nbsp;<\/p>\n\n\n\n<p class=\"\">These things are just some of the tools are your disposal to enable you to not only support your employees, but create an adaptive organisation that\u2019s agile, flexible, and resilient, and one that can quickly respond to ongoing uncertainty and changing priorities. <\/p>\n\n\n\n<p class=\"\">Coupled with an agile, flexible <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/people\/\">cloud HR platform<\/a>, you can enable rapid, data-driven decision making, easily tailor employee experiences for individuals and teams, and support changing global policies and local compliance. <\/p>\n\n\n\n<p class=\"\">Being prepared is always a smart move in uncertain times. <\/p>\n\n\n\n<p class=\"\">That much is certain.<\/p>\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">HR in 2030<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Read this report to discover five trends progressive People leaders need to know to get ahead and help their organisations thrive.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-c02f527f-e767-45e4-bb44-cabb47548500\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download the report<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-561609507-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-561609507-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>With many employees worried about finances and what the future holds, we look at the role HR can play to support them.<\/p>\n","protected":false},"author":1118,"featured_media":13017,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[10],"tags":[240],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[69,71],"imagine_tag":[92,217,96,218],"coauthors":[397],"class_list":["post-13019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-leadership","tag-hr-processes-medium-businesses","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Jessica Leyshon","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/09\/Economic-downturn.jpg","imagine_tags":{"92":"HR and Payroll","217":"HR processes","96":"Medium businesses","218":"Top HR resources"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/13019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=13019"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/13019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/13017"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=13019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=13019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=13019"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=13019"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=13019"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=13019"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=13019"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=13019"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=13019"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=13019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}