In times of economic uncertainty, investing in your employees is a win-win

Some of the world’s largest economies are experiencing uncertainty at the moment. Brexit. Labour reform in France. A jittery stock market in the US. The political climate in some of South America’s largest economies.

Uncertainty is a business’s greatest concern because what they look for above anything is a stable political and economic environment in which to invest.

Regardless of the cause of the uncertainty, those nerves in the market manifest themselves in a pretty similar way: companies slow or stop their hiring, expenditure is trimmed, and investment put on hold.

I see a similarity in the way economic uncertainty affects the housing market. Rather than moving house – an undertaking with a litany of costs – people stay put and wait it out. Instead, they might look into an extension of their existing property or pay off some of the mortgage if possible. In the rental market, one might choose to extend the rental period and save more money to see what happens to property prices before taking the plunge to buy. Either way, the result is the same: Investment stalls, impacting economic growth.

For companies out there thinking about investing in employee development: now is the perfect time to build that extension or pay down that mortgage!

What do I mean by this, you ask? Hiring talented people to grow your business is already a challenge given the low unemployment rate in many developed economies. Coupled to that, when the economic outlook is uncertain, people take the same decision as businesses do: they stay where they are, reduce their risk, and see what unfolds.

 So - a difficult hiring market, and economic uncertainty. Precisely the time for doubling down and investing in your existing employees.

 What are the areas you should be looking at?

Speak with the department heads/line managers and prioritise the employees you want to invest in. Review the policies you have in place for the continuous development and internal promotion of talent. Identify those who, with the right support, are capable of taking on new responsibilities and growing the business.

A 1-to-1 coaching course will help your business assess which employees are willing and able to take on additional responsibility, and equip them with the skills they need to flourish. For those with leadership potential, investing in a leadership training program will give them tools to learn how to manage others for the first time or put a clear structure in place before stepping up to manage a larger team.

Turn the economic conditions to your advantage, stay ahead of the competition, and invest in your existing employees in 2019.