Leading has never been so complicated, especially in the midst of an impending recession. Today’s leaders face a variety of challenges, from figuring out how to retain talent to training employees to meet the ever-changing demands of the marketplace to finding new ways to reduce costs.
The current global economic situation is causing companies to reduce their budgets, which creates three main challenges: talent retention, skills gaps and limited resources. The answer to these problems is a well thought out learning strategy.
Leadership in a recession
When the economy suffers, leaders are forced to rethink their strategies, cut budgets, and reexamine their workforce. For the Learning and Development sector, more often than not, that means doing more with less. And while this may seem like a terrible threat to the positive learning culture created by companies in Latin America and around the world, it is still possible to turn adversity into opportunity.
Learning is a key component of the plan for any company that wants to prepare for a recession. So while other companies are struggling to stay afloat, a company that invests in upskilling its workforce can not only survive, but thrive.
Leaders are finding ways to keep learning relevant and help their organizations retain employees despite tough times — one study showed a payback period of less than six months for companies that prioritize learning.
Of course, this is easier said than done, but learning technology is a great place to start. Companies can use it to assess skill gaps within their workforce, provide mentorship opportunities, and focus on employee growth.
doing more with less
There are some things leaders can do in stressful times, like scout their own employees for new talent. Retaining is cheaper than hiring new professionals. Managers can find out which employees have the transferable skills the company needs to keep all critical positions filled.
Another important action is to identify the skills gaps of the employees and help them in the areas that need improvement. This will give the organization better visibility into the skills that need to be developed across teams and departments.
It is important that throughout this process companies create a detailed communication plan. Double down on communication with all employees, especially with messages celebrating available learning opportunities. When employees feel empowered and informed, they are more likely to stay engaged.
The importance of feedback
When people have a safe space to connect, they are more likely to feel comfortable sharing their real-world experiences, admitting their failures, and listening to their peers.
Offering training and mentoring opportunities is another thing leaders can do to boost employee morale. By allowing them to connect with leaders from across the organization, employees will feel empowered to overcome obstacles and grow their careers.
Promoting team building is also crucial in this context. Empower managers with the tools, strategies, and activities that help them make their teams more united, inclusive, and resilient, which can boost morale and well-being.
Pay special attention to Diversity and Inclusion so you don’t lose sight of your company values. It is especially important to maintain and promote initiatives that encourage inclusion and belonging. By ensuring that everyone is heard, you also maintain your culture and your people.
And don’t forget: Recognize your team’s efforts often. Recession times are hard on everyone, so celebrate even small victories and people’s achievements in learning and performance. By doing so, the job satisfaction of the employees will increase, so that the morale of the staff will be high.
Debora Mioranzza Débora Mioranzza is the Vice President for Latin America and the Caribbean of Degreed, the platform for the improvement and requalification of the workforce.