The whiplash-inducing cycles of record hiring and morale-lowering layoffs — more than 200,000 in the past year alone — show the contrast to the job boom, when the labor market was ripe with opportunity and business valuations were high.
What’s important now is how your organization nagivates in a recessionary environment. Examining your employer’s agility and ability to prioritize can give you a good picture of an organization’s stability and your own job security. Here’s what to look for:
1. Leadership is focusing on how to best restructure operations to save on costs and avoid being overtaken by more agile competitors: What does that look like? It can be as simple as taking action early to cut costs before cutting people or roles, or making small shifts to ensure funds are being strategically invested in the short- and long-term.
Many times, being conscientious of things like travel and wasteful spending is a sign of leadership’s ability to pivot in a down market to avoid a reduction in the workforce. This kind of foresight may involve a hiring freeze, with existing roles being streamlined to focus on key priorities – as opposed to resorting to layoffs. Or it could be small changes, like replacing fresh flowers at reception with natural or artificial plants that require little to no maintenance.
2. Intentional efforts to prevent cycles of hiring and firing: Are contractors or freelancers being used more often? That tends to be a good option for organizations to provide extra hands but in a scalable way. Depending on the financial situation and business needs, companies can add or reduce contract resources to respond to market realities, while keeping the core of the organization engaged.
For employees, there may also be more opportunities available as the organization looks to leverage existing talent to weather a storm. If there is an enhanced focus on learning and development, for example, take that as a key sign of investment in skills and creating versatile teams that can pivot and embrace different types of work.
With hiring freezes and shifts in the company, look at how different departments and teams are being staffed and measured. Clear priorities to focus on and the appropriate staffing and means to achieve them is a positive sign.
3. Communication. What are leaders saying? What are they not saying?: During a market environment like this, sharing updates makes the stronger, better-positioned employers stand out. If you’re noticing a lack of information or context, pay attention and try to avoid speculation. Ask questions to understand what is known and what may not yet be known. Test your assumptions and avoid creating a false narrative of what is “actually” happening. Clear communication and intentional sharing of information is a sign of stability, but in times of great uncertainty you cannot assume that leadership has all the answers.
4. A sense of ownership and communication throughout the organization: Are managers and supervisors facilitating discussions with their teams about priorities, resources, and what’s going on elsewhere in the organization? While email updates and town halls presented by senior leaders are helpful, creating multiple lines of defense against uncertainty promotes understanding confidence between leaders and employees and tells everyone that they’re fighting for the same cause.
“ As an employee, keeping track of what’s going on will enable you to feel informed through ups and downs. ”
Despite the obvious challenges, leaders and organizations can take this opportunity to show you your value and how they’re supporting you. As an employee, keeping track of what’s going on will enable you to feel informed through ups and downs. Continuing to monitor internal communication and tracking what is being shared with external stakeholders and the media also is helpful. Take note: Are the organization’s messages aligned, or are they mixed or vague?
While it’s hard to feel fully confident that you are “safe” or that your company would define itself as well-prepared for struggles, these signs are an initial indication that leadership is prioritizing the long-term health of the business and the value of its employees.
Deb Seidman is a principal at Kotter.
This post was originally published on Market Watch
