News Spotlight

DEI and MEI aren’t mutually exclusive. In response to DEI backlash, the idea of MEI – merit, efficiency, and intelligence – emerged to fill the gap, but business leaders need to get both right to hire and retain top talent (Fast Company).

Remote work in question. The incoming Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, has proposed ending remote work for federal employees (The Wall Street Journal).

Women are staying in the workforce. Since 2000, labor force participation has been steadily growing for women over 55, with studies suggesting that they’re putting off retirement not because they have to – but because they want to (The Washington Post).

Stat of the Week

According to a recent study, U.S. employees’ daily negative emotions remain elevated above pre-pandemic levels, an indication that things have not adequately improved for workers over the past several years. Today, 51% of employees experience daily stress, as well as worry (40%), sadness (22%), and anger (18%).

Especially concerning is that employees who are actively disengaged at work are significantly more likely to feel these negative emotions. For example, 69% of these employees experience daily stress while only 40% of their engaged peers feel this way — a 29 percentage point difference. With disengaged employees so much more susceptible to feelings of stress, worry, sadness, and anger, companies must make engagement a top priority. These negative emotions can compound, leading to burnout and, in turn, diminishing productivity, increased absenteeism, and rising turnover. While the acute impacts of the pandemic may be largely behind us, the workplace is continuing to evolve with hybrid work, technological advancements, and more, putting employees on uncertain footing. Employers must focus on employee engagement in the years to come to help their teams avoid the churn of negativity and ensure their business is not unduly impacted.

Deep Dive Article

8 Strategies for Investing in Your Workforce Amid Economic Uncertainty

As we look to the year ahead, there’s considerable uncertainty in what we can expect on economic, political, and societal fronts. With a new policy environment on the horizon, along with continued geopolitical tensions, some economists fear that aggressive tariffs and rising inflation could put our economy at risk for recession.

In addition, the workplace continues to rapidly evolve. Some businesses are embracing the hybrid working models while others are bringing their employees back to the office. At the same time, new technologies like AI reshape our day-to-day work while employees need to focus on upskilling to keep up.

Amid these trends, 40% of employees report feeling pressure to be more productive as they try to keep up with the pace of change, overall economic uncertainty, and shifts to business strategy. This pressure, and the anxiety and stress that come with it, can lead to burnout, something that a staggering eight in ten employees (79%) say they experienced in the last year, impacting both productivity and engagement. This has implications not only for employee well-being but also for broader business performance and resilience: workers who feel burned out are significantly less likely to go above and beyond what’s expected of them at work (40% vs. 56%).

New insights from isolved illustrate the gravity of the situation and provide a playbook for what employers can do to support their teams. Today, 84% of business owners believe that most of their employees live paycheck to paycheck, meaning that flexible financial support is more important than ever. 92% of employers are open to providing more flexible pay options, like earned-wage access or on-demand pay, to help employees manage their finances.

Employers acknowledge that transparency is crucial during economic downturns, but in many cases, communication with employees becomes deprioritized. According to 32% of HR leaders, failing to communicate openly is more damaging than cutting costs. In challenging times, retaining employees becomes even more essential, and transparency plays a key role in that.

“As inflation and the cost-of-living rise, HR teams will face an increasing number of requests from employees for financial support,” explained Amberly Dresser, isolved VP of Corporate Marketing. “In 2025, proactive employers will need a comprehensive communication and benefits plan that highlights available financial resources, offers lifestyle discounts and gives employees more flexibility to manage their deductions. Clear, proactive communication will be key to ensuring employees are fully aware of the benefits available to help them navigate these challenges.”

While economic realities may require many companies to pursue cost-saving measures in 2025, these measures must be balanced with strategies that retain talent and protect morale through difficult times.

Here are several strategies companies can adopt:

1. Transparent Communication

It’s important to keep employees in the loop with clear information about your company’s financial health, challenges, and steps being taken to navigate an economic downturn. And communication is not a one-way street. Any regular updates should be given with the opportunity for open dialogue, encouraging employees to ask questions and provide feedback to foster trust.

2. Financial Support and Flexibility

To support employees through individual economic hardship, companies can provide key solutions like employee assistance programs, which provide access to financial counseling, budgeting workshops, or debt management services. Flexible pay structures — such as earned-wage access, on-demand pay, and deferred bonuses — can help employees find a path through financial uncertainty.

3. Job Security Measures

Cost-cutting measures like layoffs can be inevitable in economic downturns, but it’s important to also consider any temporary adjustments that can help weather the storm, such as reduced work hours, job sharing, furloughs, or even temporary pay reductions with a clear plan for restoration. In more stable times, companies can also ensure their employees are well-positioned for these adjustments by investing in training programs to help them easily pivot between different roles.

4. Mental and Emotional Support

Stress and anxiety can go hand-in-hand with financial uncertainty, so HR leaders should invest in both mental and financial wellness programs for their employees, such as counseling, meditation apps, financial literacy platforms, and retirement planning tools. Additionally, flexible work arrangements that allow for remote working or adjusted schedules can reduce commuting costs and improve work-life balance.

5. Recognition and Morale Boosting

Also essential to employees’ mental health is knowing that they are genuinely valued for their contributions and hard work. Non-monetary rewards — including recognition programs, extra time off, or development opportunities — can bolster morale, while team-building activities can promote a sense of community through virtual or in-person events.

6. Support for Daily Living Costs

To help curb the day-to-day challenges of economic uncertainty, employers can also offer support for daily living costs, offering assistance for meals, transportation, or childcare. In addition, partnering with local businesses to provide discounts on essential goods and services can alleviate employees’ financial burdens in challenging times.

7. Focus on Career Growth

To help employees navigate career challenges and opportunities, consider introducing a mentorship program as well as upskilling opportunities that can serve employees in their professional development in the long term, as well as organizational resilience in the near term. Employers can encourage employees to apply for open roles within the organization, which serves the dual purpose of fostering career stability for employees while retaining talent and filling critical gaps.

8. Preparing for Future Stability

As part of creating open communication channels with employees, leaders should share their company’s long-term planning strategies, including their vision for recovery and growth to help instill confidence in the future. Leaders can also invite their teams to collaborate on cost-saving initiatives, such as identifying ways to cut costs without impacting jobs.

Lead with empathy

It’s impossible to know exactly what will happen in 2025, but change — economic, political, technological, environmental — is on the horizon. Extending grace and empathy to your employees is perhaps the most important thing to keep in mind, along with ensuring that they have what they need to successfully manage what’s to come. By demonstrating empathy and providing tangible support, companies can help employees weather economic downturns while fostering resilience in their companies and well-being in the workforce.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

“Someday is not a day of the week.”
​Janet Dailey