Nearly half of people across the UK are worried about losing their job, a study shows - and a third are working unpaid overtime in a bid to improve the chances of staying employed. Research by employment experts Citation also found 78% of owners are worried about what could happen to their business.
Many business owners have seen a 22% drop in profits on average since the start of the cost-of-living crisis. One in four believes that their business will soon be smaller or struggling to survive thanks to the rising cost of power and fuel, rising wages, rising costs of services like broadband and the rising cost of rent and mortgage.
They are already turning off heating and lighting, letting staff work from home or looking for smaller premises.
Gill McAteer, director of employment law at Citation, said: "It’s important to be honest with employees, particularly in difficult times. When trading conditions are difficult, employers will often become so consumed with their own concerns that they forget to speak honestly and directly to their workforce, which leads to speculation, worry and demotivation.
“It’s easy to fall into a trap of thinking that employee engagement is something to consider when your ‘real’ problems have been tackled, but this strategy can ultimately lead to more problems further down the line.
“Businesses who communicate honestly, regularly and empathetically with their employees and who show they value their contribution and care about their welfare will be giving themselves a great advantage in navigating these difficult economic times.”
Top tips for employers navigating difficult times:
- Be direct and honest with employees, speak to everyone together
- Give them the truth of the situation and what steps you are taking/have taken to move the business onto a better path
- Be real about what the consequences may be but cushion this what steps you are taking to avoid them
- Agree regularly updates where you discuss the plan, where you’re at, issues you’ve experienced and successes you’ve achieved since the last meeting
- Your employees can be a great source of creative and innovative solutions and by showing them their opinions are respected and the importance of their role in achieving your business goals, you will increase their engagement.
- Celebrate wins, regardless of how small, as this will give hope and motivation to the team to continue driving the business forward.
- Rewarding people in the face of adversity shows that you, as an employer, have integrity. While rewards don’t need to be big, simple email recognitions can be enough. These small gestures will motivate employees and help with staff retention.
- Ensure your mangers are trained in how to spot employees who may be struggling with anxiety of mental health issues, and offer a designated person to have proactive and reactive conversations with everyone
