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HR In a Time of Change: Managing Wellbeing, Trends, and Layoffs
The human resources landscape is rapidly evolving, shaped by economic shifts, changing employee expectations, job market trends, and technological advancements.
As companies navigate these changes, HR leaders balance strategic business goals with employee well-being and engagement.
To understand how these factors interplay and what the future holds for HR, we turn to insights from Tanya Jarrett, chief people officer at Alida, who shares her thoughts on managing economic changes, promoting employee wellbeing, understanding job market trends, and adopting best practices for layoffs.
Economic Change and Its Effect on HR
Economic fluctuations have a profound effect on HR strategies. From the Great Recession of 2008-2009 to the recent challenges posed by the COVID-19 pandemic, HR leaders have had to adapt swiftly to maintain business continuity while supporting their workforce.
Tanya Jarrett points out that economic downturns often force HR leaders to make tough decisions around layoffs, budget cuts, and restructuring. Still, they also present opportunities to rethink workforce strategies and enhance organizational resilience.
“Navigating economic change requires agility and a willingness to adapt,” Jarrett says. “It’s not just about cutting costs; it’s about finding creative ways to optimize resources while continuing to invest in your people. This might mean reallocating budgets, upskilling employees, or redesigning work processes to improve efficiency.”
Employee Wellbeing: A Strategic Imperative
Employee well-being has emerged as a critical focus for HR leaders. The pandemic underscored the importance of mental and physical health, leading many organizations to prioritize holistic well-being programs. According to a recent survey by the World Economic Forum, 80% of HR leaders plan to increase their investment in employee well-being initiatives over the next three years.
Jarrett emphasizes that fostering a culture of well-being goes beyond offering traditional health benefits. “Wellbeing is about creating an environment where employees feel valued, supported, and empowered,” she notes. “It’s important to provide access to mental health resources, flexible work arrangements, and opportunities for professional growth. These elements are crucial for maintaining engagement and reducing burnout.”
Research from Deloitte supports this view, showing that companies with strong well-being programs experience 20% higher employee engagement and 10% lower turnover rates. Jarrett also stresses the importance of leadership involvement in wellbeing initiatives. “When leaders model healthy behaviors and openly support wellbeing programs, it sends a powerful message to employees about the organization’s commitment to their health and happiness.”
Job Market Trends: A Shift in Power
The job market has undergone significant changes in recent years, with a noticeable shift in power from employers to employees. Factors such as the Great Resignation and the rise of remote work have given employees more leverage in negotiating salaries, benefits, and work conditions.
Jarrett observes that this shift has compelled companies to rethink their employer value proposition. “Organizations need to be more transparent, flexible, and responsive to the needs of their workforce,” she says. “This means offering competitive compensation packages, prioritizing diversity and inclusion, and creating a culture where employees feel heard and appreciated.”
Moreover, job market trends are increasingly favoring skills over experience. A report by LinkedIn notes that 76% of companies now prioritize skills over degrees when hiring. “This shift toward skills-based hiring is an opportunity for organizations to tap into a more diverse talent pool,” Jarrett explains. “It also encourages continuous learning and development, essential for staying competitive in a rapidly changing market.”
The Future of HR: Embracing Technology and Human-Centric Approaches
HR’s role is expected to become even more strategic and technology-driven. Artificial intelligence (AI) and automation transform HR processes, from recruitment and onboarding to performance management and employee engagement. However, Jarrett cautions that technology should not replace the human touch, which is critical to effective HR management.
“AI can help us streamline processes and make data-driven decisions, but it cannot replace the empathy and intuition essential in managing people,” she says. “HR leaders must balance leveraging technology and maintaining a human-centric approach.”
For example, AI can analyze employee sentiment and predict turnover, but it is up to HR leaders to interpret this data in context and develop strategies to address the underlying issues.
Jarrett also sees technology as a tool to enhance, rather than replace, human interactions. “Virtual collaboration tools, for instance, can help maintain a sense of connection and community in a remote or hybrid work environment,” she notes.
Best Practices for Layoffs: A Compassionate Approach
Layoffs are among HR leaders’ most challenging decisions, particularly during economic uncertainty. Jarrett believes that while layoffs are sometimes necessary, they should always be handled with compassion and transparency.
“Layoffs are never easy, but they should never be conducted in a way that leaves employees feeling disrespected or undervalued,” she advises. “Clear communication, empathy, and support are key to minimizing the negative impact on departing and remaining employees.”
Experts recommend several best practices for conducting layoffs:
- Plan Ahead: Develop a clear strategy and timeline for layoffs, considering the business’s long-term goals and the potential impact on employee morale and brand reputation.
- Communicate Transparently: Provide employees with as much information as possible about the reasons for the layoffs, the process, and the support available. Transparency helps build trust and reduces anxiety.
- Offer Support: Provide severance packages, outplacement services, and emotional support to affected employees. Offering resources to help them transition to new opportunities demonstrates empathy and maintains the company’s reputation.
- Focus on Remaining Employees: Recognize that layoffs can create a sense of insecurity among remaining employees. Address their concerns, reaffirm their value to the organization, and outline the company’s plans for the future.
Research by Harvard Business Review suggests that companies that handle layoffs poorly often experience a decline in productivity and morale. At the same time, those who manage the process thoughtfully are more likely to retain employee trust and loyalty.
Actionable Advice for HR Leaders
For HR leaders, building a strong partnership with senior leadership and other departments is the key to navigating economic change, fostering employee well-being, adapting to job market trends, and managing layoffs. Jarrett emphasizes the importance of being a strategic partner, not just a functionary role within the organization.
“HR leaders must position themselves as strategic advisors who bring unique insights into people management,” she says. “This involves working closely with the CFO to align HR strategies with financial goals and collaborating with the CEO to shape the company’s culture and vision.”
She also highlights the need for continuous learning and adaptability. “HR is no longer just about managing personnel; it’s about driving organizational success through people. To remain effective, HR leaders must stay informed about market trends, technological advancements, and best practices.”
The Road Ahead: A Balanced Approach
As the workplace evolves, HR leaders must adopt a balanced approach that leverages technology while prioritizing human connections. This involves fostering a culture of well-being, staying attuned to job market trends, and handling layoffs with empathy and transparency.
Jarrett concludes, “The future of HR will be defined by our ability to adapt to change, support our people, and drive meaningful organizational outcomes. By staying focused on these core principles, HR leaders can help their organizations thrive, regardless of the economic climate.”