With three-quarters of HR leaders concerned about a potential recession, according to data from the Achievers Workforce Institute HR Preparedness Report, organisations must focus on two key areas to survive and thrive through the challenging times ahead.
Jump straight to infographic: Recession preparedness infographic
This infographic outlines the data connecting the dots between recognition, productivity and resilience. Improving these areas is critical for HR leaders preparing for a recession in 2023. Organisations are likely to be operating with lean teams and facing unexpected challenges, requiring renewed effort from HR leaders, many of whom are still recovering from the pandemic and Great Resignation.
HR focus for recession preparedness
- 1. Resilience
Resilience is the ability to adapt to and manage unexpected challenges. It has proven especially crucial during the COVID-19 pandemic and will continue to be vital as companies and communities navigate the predicted recession. Achievers Workforce Institute looked at both individual and organisational resilience to determine what the key drivers were, so organisations can help foster resilience in their employees and culture. - 2. Productivity
Organisations are getting leaner. Asked how they were preparing for a possible recession, the number one 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.
Top drivers of resilience and productivity
The HR Preparedness Report found five action areas for HR to focus on in 2023 to prepare for the recession by improving resilience and productivity.
- 1. Recognition
Employee recognition is the low hanging fruit for driving engagement, resilience, and productivity. The data clearly demonstrates the connection between recognition frequency and positive business outcomes. - 2. Feedback
In a culture of data-driven decision making, employee feedback is a crucial tool for guiding HR initiatives. However, just gathering the data isn’t enough. AWI research shows that the true power lies in taking action on feedback, which triples belonging and more than doubles productivity and resilience. - 3. Connection
Having strong relationships at work is one of the best predictors of resilience and productivity. People who say their company supports them in building relationships at work are more than twice as likely to report high individual resilience and almost three times more likely to report high resilience at the organisational level. They are also almost three times more likely to report being their most productive selves at work. - 4. Manager effectiveness
An effective manager is a game changer for an employee or team. The right manager can inspire, support, and develop employees, driving incredible results for the organisation. However, one great manager isn’t sufficient. Organisations must solve the puzzle of scaling manager effectiveness. - 5. Culture alignment
Culture alignment exists when the decisions an organisation makes is aligned with its values. HR leaders who said their company has strong culture alignment were twice as likely to report high organisational resilience as well as high individual and team productivity.
Read more:
HR Preparedness Report
HR leaders: 3 steps to recession-proof your teams
CHROs: Learn 4 ways to boost productivity today
VP of Total Rewards: The top outcomes of a robust recognition program