Despite the strong job market, many people are still aren’t in better financial shape than they were a year ago. The rising cost of living and the lack of confidence in the economy are some factors that have affected the mood of Americans. It’s even expected that the unemployment rate will increase from 3.7% to 4.4% by the end of next year.
The pandemic and the return-to-work requirements imposed by employers have caused employees to feel the effects of stress. During inflation, leaders must speak to their employees in a way that will touch their hearts and minds. Here are some ways that can help you successfully lead during inflation.
Alleviate financial stress
Many employees are worried they might lose their jobs due to the economic situation. They also hope their employers will provide adequate resources to address their needs.
Although benefits and compensation are good starting points, they are not enough to address the needs of employees. Besides having adequate resources, businesses also need to think outside the box to support their workers. This can be done by establishing workplaces designed to encourage employees to do their best work and form meaningful connections.
Help them find a clear vision
The Great Resignation can serve as a wake-up call to leaders about the millions of people who give up on their search for work due to a lack of a clear vision. This can lead to organizations becoming bloated and unable to prioritize.
Many employees feel undervalued and insecure about their future because they don’t understand the organization’s direction or the value of their work. This can lead to them looking for opportunities elsewhere. To help keep their employees engaged and motivated, leaders and managers should regularly engage with them to align their work with the company’s priorities.
Pay attention to employees’ well-being
The report released by Microsoft revealed that personal well-being was the top reason employees left their jobs in 2021. A study conducted by the Gallup organization also revealed that people’s well-being could be categorized into five elements: career, financial, social, community, and physical. Unfortunately, only 7% of individuals thrive in all of these.
Leaders must pay attention to the needs of their employees to make them feel valued and responsive. Having a quick check-in can help keep track of the team’s progress.
Focusing on Wall Street, customers, and competitors is tempting during times of uncertainty. However, employees are the ones who develop and deliver innovative solutions that help keep your company running. With inflation rising, leaders must create environments encouraging employees to prioritize their well-being.
Employees are taking notes to evaluate the effectiveness of their leaders. They are also asking whether the company’s vision, culture, and purpose are being followed. Despite the tough times, organizations and leaders can still rely on their people’s experiences to weather the storm.