Attraction and Retention in Times of Social Uncertainty

I recently had the opportunity to listen to a wise 92-year-old man share his thoughts on the current situation. He reflected on his experiences during a time marked by significant chaos, threats to humanity, and uncertainty – much like today. The key difference, he noted, is the easy access to information that we have today. Back then, people focused on day-to-day challenges and did their best. Each day was simply a new opportunity to start fresh.

In contrast, this gentleman’s younger generations are now confronted with a very different reality, one characterized by similar challenges, but with an overwhelming amount of information which influences their decisions about whether to stay in a job and do their best, pursue a career with a company they admire, or to do the bare minimum to avoid termination. This situation represents a social phenomenon that has significant implications for attracting and retaining talent, as well as overall performance in the workforce.

What is happening today that has such a significant impact on employees?

We are living in a time of rapid social changes that create chaos and trigger feelings of anxiety and instability. Many of these changes test organizations’ strategies and resilience.

• Large layoffs have become increasingly common in both the private and public sectors, carried out by well-known, highly successful, and profitable companies. Unfortunately, many of these processes reveal a concerning lack of empathy for the employees affected, highlighting the human cost behind corporate decisions.
• There is uncertainty surrounding the future of many employee programs, particularly in Diversity, Equity, and Inclusion (DEI). Just 12 months ago, CEOs would have assured employees that these programs were essential, unaware that they could be dismantled so quickly.
• Prominent leaders are requiring employees to return to the office or leave, stating that it is better for the organization. Korn Ferry’s research suggests that 58% of employees perceive they are more productive working from home, but more importantly, they are finding a better work-life balance. These leaders assume that the cost of leaving would be more challenging for employees than staying.
• Governments are implementing swift restructuring processes to cut costs, often without thorough process redesigns, impact analyses, or change plans. The ripple effects of these changes directly or indirectly affect many organizations.
• Rapid technological advancements, such as AI, are challenging to keep up with. There is also a lack of suitable strategies and relevant training. According to Gartner for HR, 47% of employees using AI lack the knowledge needed to achieve expected productivity gains, and 77% claim these tools reduce productivity and increase their workload.

The question remains: Which companies will be desirable to employees, and which will be able to retain engaged and committed employees, regardless of their position, in the face of these challenges?

What is the impact on employees?

External factors such as political changes, global instability, economic uncertainty, the rapid introduction of AI, and relatable situations such as mass layoffs can create uncertainty and chaos, directly affecting employees’ anxiety levels, mental health, and focus on tasks.

Conversely, how an organization responds to these situations significantly influences employee perceptions. Decisions that are perceived as adverse, poorly managed change, or inconsistencies between leadership’s stated values and their actual actions can lead to a lack of trust, increased disengagement, diminished commitment, and even feelings of betrayal.

Research indicates a strong correlation between low commitment and engagement with retention rates, reduced discretionary effort, and decreased productivity and performance. Ultimately, how organizations navigate this new reality will shape their employer brand.

Are organizations ready to face this?

Even if you spend a significant amount of time during your strategic planning process trying to visualize potential threats and engaging in high-level planning, the rapid pace of change, the abundance of new information each day, and the overall uncertainty can leave us feeling unprepared. While most companies may not go bankrupt for failing to adapt promptly to this new reality, not all will thrive and excel; many will encounter attraction, retention, and performance challenges sooner or later.

Is there a formula for success?

Unfortunately, there is no straightforward formula. However, now is an excellent time to start if your organization has not yet invested in creating a strong culture built on shared values, developing effective leaders, and investing in employees. It is never too late.

Though there’s no definitive formula to follow, you can take some essential steps to ensure your organization avoids negative consequences and, more importantly, thrives.

1. Responsibility for providing clarity: It is essential to recognize that this is not just an HR responsibility; it is a leadership responsibility. I recommend formally involving leadership in this initiative, allowing them sufficient time to focus on the project. Creating clarity out of chaos is a crucial task for leaders. In a recent post, Dave Ulrich reminds us that research shows “that strategic clarity” positively impacts stakeholder values and business results.
2. Awareness: Identify and recognize both external and internal threats and assess how they may affect your organization and employees. Consider whether these impact employees’ desire to stay with the organization or make it a less attractive workplace.
3. Manage the Change: Have you evaluated the potential impact of these variables? It’s important not to underestimate their effect on your stakeholders and, ultimately, the company’s performance. Changes can range from implementing AI to altering employee practices and managing necessary business transformations. The level of change will define the level of complexity you will face. This should not be taken lightly; leadership must take ownership of the plan and ensure its execution. How you manage these changes is crucial for retaining key talent and enhancing your EVP.
4. Information: You should have systems in place to capture, fact-check, analyze, and disseminate new information that may be relevant. Misinformation can be detrimental to organizational health. The best way to counter misinformation is by promptly providing reliable information. I’ve seen firsthand how rumors of layoffs led our most valuable employees to leave first.
5. Define the Direction: There is considerable uncertainty regarding the future of employee-related programs. Regardless of your organization’s approach to these practices, it is essential to establish a clear direction promptly while ensuring you do your due diligence process. Gather information, involve stakeholders, and develop a solid change plan highlighting employee impact. Clear and honest communication will pay off.
6. Listen to Employees: Create channels for employees to express their concerns, ideas, or thoughts. Equip leadership with essential tools to demonstrate empathy and foster meaningful conversations with their teams.
7. Skills Development: All employees, from the CEO down, must develop specific knowledge and skills to navigate a changing environment. This includes understanding new legal requirements, leveraging AI tools, adapting to new ways of working, managing inclusion, teaching empathy, and coping with change.
8. Strategic Roadmap: Pressure test your business strategy against these challenges and be ready to adjust it. Please don’t wait until the next planning cycle to make changes; act now and ensure employees understand how they fit into the new framework.
9. Values: This is a crucial moment for your core values. Whether your top value is profit or employee well-being, the key is to have shared values among all stakeholders that align with your actions. Any contradiction between stated values and actual actions will harm the organization.
10. Business decisions: If the business requires implementing changes impacting employees (e.g., layoffs, shifts in work practices, or adjustments to employee programs), handle these changes correctly. Be honest, maintain open communication, and provide employees with the tools and resources they need to cope with the transitions. Managing this process with transparency and empathy will yield positive results.

Change is constant, and we are currently experiencing a period of rapid transformation. How you manage this change will determine whether your employees choose to stay out of loyalty, whether your organization attracts new talent due to its positive reputation, and whether your organization can thrive and stand out from the competition.