Even During Uncertain Times, Companies Are Investing In People, Research Shows

When demand for talent was booming during the first half of 2022, employers resorted to various perks and incentives to win over candidates. Liberal remote working arrangements, generous vacation policies and gourmet meals in the office were just some of the offerings. Giving skilled workers anything and everything became a common practice.

Now that the economy is softening, have companies abandoned their talent-first mentality as budget constraints have set in? Are workers facing a different reality in the workplace as layoffs and hiring freezes ramp up?

The power balance between employers and workers has moderated since 2022. With many businesses now downsizing due to weakening demand or in anticipation of it, employees can no longer do as they please, such as thumbing their nose at return-to-work mandates or roam freely to work wherever they see fit. Even so, the need for in-demand skills has hardly gone away. Even hourly workers remain in short supply in some industries as these businesses struggle to fill roles.

Employers remain sensitive to how all workers experience their time on the job and throughout the entire talent life cycle. Whether it’s making work more meaningful, ensuring access to learning and development opportunities, or lessening the sting of a layoff, companies are committed to providing the best experience to their people.

This was one of the conclusions of the Randstad Enterprise 2023 Talent Trends Report, which captured the perspectives of more than 900 C-suite and human capital leaders in 18 markets. The new research, which was conducted at the end of 2022, shows that employers continue to invest in talent strategies that demonstrate care for their talent. Even as many downsize their workforce, they are taking steps to make sure offboarded employees have resources to help them land on their feet.

For instance, about half of those surveyed (49%) say they are increasing budgets for career transition and outplacement services. A majority (53%) say they are already spending at moderate to significant levels to support transitioning employees, and 11% wish their organizations would spend even more on this service.

While some recent mass layoffs have garnered negative headlines for the way they wereconducted — whether by group calls or locking employees out of their systems before giving them notification — most employers have made cuts with care, clarity and compassion. Through generous layoff benefits, clear communications and even apologies from the C-suite, businesses have been sensitive to the stress people feel.

Sustaining employee care

Research conducted by Randstad at the beginning of the pandemic found that most workers around the world felt supported by their employers during this tumultuous time. Three years later, the Talent Trends data shows most companies continue to offer considerable amounts of help for their workforce. For instance, a majority (54%) are spending more on well-being and safety programs, despite rising concerns about costs. This is also reflected in the proliferation of wellness officers at many corporations as executives look to enhance the physical, mental and even financial wellbeing of their workers.

Although some workplace stressors have moderated since 2020, macro forces are cause for concern for people everywhere. An uncertain economy, unyielding inflation and geopolitical uncertainty are leading to sleepless nights for many. These factors are universally cited by about one-third of corporate leaders as negatively affecting their businesses, Randstad Enterprises survey finds.

Executive burnout is on the rise too, especially among women leaders. High-profile departures from the workforce at companies such as Google and Facebook indicate many female executives are taking a step back to rebalance their lives. It’s no surprise, then, companies are earmarking more to make sure their employees at all levels are more fit to contend with a convergence of pressures they feel every day.

A healthier and more engaged workforce is certainly key to improving productivity and retention, but so are professional development and growth. In an era of accelerated digital transformation, workers are keenly aware of becoming obsolete due to technological advances. They urgently want to stay relevant through reskilling and upskilling initiatives provided by employers. Companies are obliging with more investments in learning and development, Randstad Enterprise’s research shows.

More than three-quarters (76%) are placing greater emphasis on employee skill development and career engagement. Just over half (51%) say skilling and coaching are effective ways to address talent scarcity. Additionally, 57% are investing more in career coaching technology, and 63% report investing in training and development platforms.

By helping their people constantly grow, companies provide employees a path to greater opportunities while addressing internal talent scarcity challenges. In fact, a majority of leaders polled say this is an effective way to help fill critical roles.

_{Employer brand still matters}

There are many other examples in the research that show company leaders remain committed to the well-being of their workforces. The reason is clear: after encountering incredible difficulties in filling roles during the last economic recovery, organizations realize their reputation as an employer matters a lot — to both talent and consumers. Both have long memories about how people are treated before, during and after joining an organization, and they are loath to rejoin, advocate for or buy from companies that fall short of expectations. And in today’s highly connected economy, stories about bad workplaces are quickly shared and amplified.

So while workers face a lot of stress in the workplace, at least they can be sure that businesses are still interested in delivering the best workplace experience possible. That means being more attuned and responsive to workforce needs — now and in the future. To be effective, corporate leaders should focus on these three key areas to maintain a healthy relationship with talent:

1. Strive for organizational transparency and clarity. In today’s uncertain economy, workers understandably are uneasy about job security, especially as more businesses announce headcount reductions. Employers can ease their anxiety by candidly communicating the challenges they face and how workforce decisions are made. This doesn’t mean reductions in force aren’t painful, but being forthright and providing outplacement support can lessen the sting for those affected. Clear communications also help protect the employer brand.
2. Stay vigilant about workforce needs. Budgets may be constrained, but companies should remain connected to their people through surveying, feedback and recognition. The need for engagement has never been greater because economic uncertainty distracts employees from their objectives. Being attuned to how they feel and how to meet their priorities enable employers to plan in a proactive and impactful way.
3. Don’t retreat from learning and development. The future of work is a responsibility companies shouldn’t take on lightly. It’s in the best interest of the workforce and the organization to close the skills gap through continuous learning, even during times of attrition. This is a strategy that will not only help people feel valued but also offer long-term payoffs.

The days of non-stop hiring and free-flowing benefits may be over, but the social contract people have with their companies have not changed significantly. Employers must still demonstrate they have a talent-centric culture and value their workers above all other resources. After all, without a motivated and engaged workforce, businesses simply won’t be able to overcome today’s challenging and more competitive environment.