Economic uncertainty inevitably impacts employees within an organisation, leading to a ripple effect throughout the workforce and impacting organisational culture. Regrettably, in the current economic climate, some leaders have conveyed the belief that investing in organisational culture is not a critical area of financial investment or a strategic priority.
It is important to remember that organisational culture is not a peripheral concern that can be treated as a side hustle, nor should the investment in your people be considered a discretionary expense. Rather, it is a vital investment that impacts the wellbeing and performance of the workforce, ultimately contributing to organisational effectiveness.
Increasing interest rates, ongoing economic uncertainty and the prospect of organisational financial difficulties pose a threat for employment security. As a result, employees may feel heightened pressure, leading to increased stress, anxiety, and lower morale.
Investing in organisational culture can help mitigate some of these negative effects and cultivate a more positive work environment that serves as a buffer for employees. In particular, prioritising organisational culture during times of economic uncertainty can foster loyalty and commitment among employees, resulting in discretionary effort and stronger organisational outcomes.
Organisational culture goes beyond providing perks and benefits when the business is thriving and stable. Rather, it is reflected in the shared values, beliefs, and behaviours that define how a company treats its people and rallies together to weather a storm.
By recognising that organisational culture is a muscle that can be flexed in response to a challenge, and not considered discretionary spend during times of hardship and uncertainty, organisations can leverage the strengths of their people to build a stronger, more resilient workforce that can weather economic uncertainty and thrive into the future.
Partner with HENRY REED to assess your current culture, co-design your desired future state and upskill your internal leadership capability to turn the potential that lies within, into performance and deliver a measurable return on investment, even in times of economic hardship and uncertainty.
Connect with HENRY REED
P: 1300 266 995
E: info@henryreed.com.au