Follow Katherine Linkedin Facebook
Email Katherine Email
Human Resources
Aug 2, 2022

As a Recession Looms, Here’s How to Comfort Your Team

Sponsored Content provided by Katherine Daniel - Principal & Founder , Montani Consulting

One leading indicator of a recession is back-to-back quarters of a decline in GDP. Government data last week confirmed a decrease in the second quarter after we already saw a decline in Q1 of 2022. As shared in a recent New York Times article, Harvard economist Jeffrey Frankel said, “A month ago, I was writing that it was very unlikely that we are in a recession. If I had to write that now, I would take out the ‘very.’”

Recession or not, we’re living through economic uncertainty.

And people are understandably feeling anxious.

Have you considered what you, as a business leader, can do to help ease the concerns of your team members? What your HR team can be doing? After all, Human Resources work is about being a resource for the humans on your payroll – beyond simply being the ones to hire and fire. Leaders and HR professionals can take action right now to help prepare employees for what could be a tough financial road ahead. You are responsible for paying your people, but great employers do more than that. They make an effort to provide team members with tools, benefits, and education so they are well-equipped to make wise financial choices.

It doesn’t take a personal finance expert to realize that right now – before a potential full-blown recession – is the time to get serious about budgeting and saving money. This is a message businesses can begin sharing with their team members immediately, along with advice on how to do so. Encourage employees to support each other in their budgeting and saving journeys. Celebrate personal finance “wins” with the team. Create a sense of togetherness and support during this time of economic uncertainty. Start today.

There are also things leaders and HR professionals can do if and when a recession officially hits. When the alarm is sounded, employees who were in the workforce during the 2008 financial crisis may be hit hardest by fears of the worst: namely, massive layoffs. No matter the economic health of your business, this is a time to communicate, communicate, communicate.

Being laid off is terrible. Being laid off unexpectedly is even worse.

Transparency from leadership matters at a time like this. What will the recession likely mean for your business? For your bottom line? How much or how little you share with your team is up to you, but don’t be silent. Your company is your people, and they deserve to understand what the future likely holds.

Economic downturns are scary – especially for workers who depend on someone else for a paycheck. How leaders react and communicate during financial uncertainty tells the true story of your mission, values, and employer brand. Times are tough for companies across industries and sizes, but a looming recession is an opportunity to step up for your people and show them yours is a company that cares.

Ico insights

INSIGHTS

SPONSORS' CONTENT
Untitleddesign14 3325110041

Key Data To Look For In The Property Revaluation Appeal Process

Larry Shaheen - The McIntosh Law Firm
Jenniferadams

Refreshing Water (and Sewer) in Wrightsville Beach

Jennifer Adams - Cape Fear Public Utility Authority
Untitleddesign12

A Partnership for Success

Trending News

Avelo To Offer Nonstop Flight To Miami At ILM

Staff Reports - Apr 15, 2025

CAP3 Promotes Shannon Short To Chief Operating Officer

Staff Reports - Apr 15, 2025

Downtown Building Changes Hands For $2.25M

Emma Dill - Apr 16, 2025

Four County EMC Honors Retirement Of East Pender District Director

Staff Reports - Apr 15, 2025

Weldon Joins Eldercare And AssistedCare At Home

Staff Reports - Apr 15, 2025

In The Current Issue

District Attorney Lays Down The Law

Since being elected, he said, he has been working to address three main priorities: domestic violence and homicide; the drug epidemic spanni...


Costs Build To Build A Home

Just for residential construction, the U.S. spends $11.2 billion on imports, a national economist told the audience of real estate industry...


Law Firm, Others Tackle Trafficking

In recent years, a Wilmington law firm and others in the area have worked on hundreds of T visa cases for men, women and children who have b...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season