Investing in the Employee Experience During Uncertain Times

Organizations face constant challenges and uncertainty: economic shifts, layoffs and hiring freezes, regulatory changes, supply chain disruptions, new technologies and business models, leadership transitions, and mergers and acquisitions.

In uncertain or difficult times, you might be tempted to scale back and spend less on your employees. But such decisions carry significant consequences. The question is not whether to invest in your people, but how.

In challenging times, it's more important than ever to appreciate your people

When the future appears less positive and predictable, it’s even more important for companies to step up for their employees. Seemingly small declines in the employee experience can not only have a big impact on a company’s ability to recruit, engage, and retain its people, but also on innovation and performance.

The best companies always take care of their people and show appreciation. In challenging times, employees want to know where they stand, and they look to their companies to provide support, purpose, and community.

Uncertain times are the best times to appreciate employees

Employee recognition clearly communicates that your company values its people. Show you appreciate them and their efforts, and they’ll work hard to help weather any storm that may come your way.

Here are 3 great reasons to always prioritize recognition:

1. Appreciation strengthens connection and community

When things feel uncertain, it’s crucial to have a strong community that keeps employees connected to your purpose, accomplishments, and one another.  

Recognition fosters inclusion, belonging, and team unity, which helps employees feel they can tackle challenges and changes together. Employees at organizations with highly integrated recognition are significantly more likely to:

• Feel they have adequate support to deal with changes (9x)
• Trust the organization (10x)
• Believe the organization cares about employees (9x)
• Believe changes made are positive (8x)
• Want to stay at their organization another year (18x)

IAG used recognition to strengthen belonging and inclusion when it introduced new company values and embarked on a major cultural transformation.

Culture Cloud® offers tools to amplify the connecting and community-building power of recognition including peer-to-peer recognition, team initiatives, and shared recognition through Post a Win, Broadcast, and Boost.

2. Continual investment in your culture shows you care

‍Recognition shows employees they are seen and valued for their efforts and accomplishments, and also that the organization is invested in their long-term growth and success. It demonstrates the organization cares about employees, which pays off in increased employee loyalty, great work, and better customer care.

Providing recognition also demonstrates you care about your employees’ wellbeing. Giving and receiving recognition is tied to 57% lower odds of burnout and 24% lower odds of anxiety, saving organizations over $8,000 annually in absenteeism costs.

Norton Healthcare uses recognition to build community and combat healthcare worker burnout.

Recognize efforts, careers, milestones, accomplishments, and life events all in one platform with Culture Cloud.

3. Your people are the key to overcoming current challenges

‍Appreciate your people for keeping the ship moving forward when the outcome is unclear. Your people know your company well and will steer it to success.

Recognition encourages a practice of hope, where employees see a path forward and believe they can follow that path. It encourages employees to overcome obstacles, inspires them to innovate, and propels them forward.  

When leaders recognize employees, there are 7x higher odds that employees feel validated and motivated. When peers recognize one another, employees are 8x more likely to feel validated and 9x more likely to be encouraged to reach goals.

3M’s centralized, unified recognition solution fosters inclusion and encourages innovation as they transition to more global, complex ways of working.

You can stretch your recognition budget by using smaller, more frequent moments of appreciation, and then celebrate big when the hard times are over.

When uncertainty rises, employee recognition is not a luxury—it’s a strategic advantage. Organizations that continue investing in their people build stronger cultures, greater resilience, and better performance, both during the storm and long after it passes. See how O.C. Tanner’s Culture Cloud can help.