Despite the optimism that comes with a new year, we can’t escape the fact that 2023 is going to be another time of uncertainty with a recession looming. Post-pandemic there are new challenges for our organisations and their leaders to contend with. With all the effort that’s gone into just keeping afloat, it could be that many organisations may not be ready for what’s to come. That’s where we can help.
Monkey Puzzle has always been about making organisational learning and development practical so, when it comes to helping organisations get the best ROI in turbulent times, we see the way forward in the same pragmatic light. This is our take on what we see as the big people issues, with some pointers to respond.
Challenges and solutions for L&D
Pressure on budgets / backlog in development
Challenge: Just as government budgets are cut in a recession, it’s no different in organisations. Even if your L&D budget is fortunate enough to remain the same, it’s still effectively a cut in a climate of higher inflation. And this on top of the reality that, for many organisations, development work is already in backlog due to the pandemic. Expect to have to do more with less – so how do you determine where to invest – and what to scale back on?
Solution: Do an L&D audit and prioritise your spend to get the best ROI. Being smart with your budget means focusing on where development is most needed. Review every development programme and planned expenditure and ask what is going to meet those needs and what could be diverted elsewhere. For example, are there high performers whose further development will be crucial in leading through the recession? Studies consistently report a high ROI on coaching – up to 500% in some studies, so whilst one to one coaching is more expensive on the surface, with a targeted approach it could provide a high pay off in the future.
Impact of the cost-of-living crisis
Challenge: Just as the pandemic put the focus on mental health and wellbeing – so will the pressures many are already facing each month, heating their homes and putting food on the table. Anything that impacts people outside of work is highly likely to do the same inside work. Employee wellbeing and the sensitivity of line management will continue to be a priority.
Solution: Prioritise the skills to help line managers support mental health and wellbeing. For example, you might develop empathy and listening skills, perhaps placing greater awareness on how to put people at ease, making difficult conversations easier. As a wider initiative, what learning is in place to give employees the knowledge to manage their financial wellbeing? For example, investing in health and wellbeing has long been reckoned to produce £5 in productivity benefits for every £1 invested.
For further guidance read: How to embed a culture of wellbeing in your organisation.
Retaining and engaging your talent
Challenge: Following the pandemic, many people are evaluating what they want from their work and career. In many cases this isn’t the organisation they are currently working for. The most striking stat to emerge from the ‘Great Resignation’ coverage in recent months is that an estimated 40% of the global workforce are contemplating leaving their employer. Many that remain are finding themselves disengaged to the extent that they do the bare minimum required – the so-called ‘Quiet Quitting’ phenomena. And the cost-of-living crisis may force more to seek higher rates of pay through a job change.
Solution: Focus on the leadership skill sets needed to support a positive culture and employee experience. It plays a big part in why your people decide to engage with what you do and remain productive, or disengage and look for alternatives. People are looking for greater purpose, more authentic and ethical leadership and support for wellbeing.
Being swayed by short-term focus
Challenge: A recession can throw up all sorts of issues that require immediate attention. It can be easy for leaders to find themselves focused on solutions that may fix the burning issue – but at the expense of the longer-term strategy. Do they risk seeing levels of burnout rise as a consequence?
Solution: Develop leaders committed to continuous development and long-term sustainable practices. Assess how your organisation is developing leaders with long-term vision and focus. What additional development do they need? For example, a coaching approach to line management and leadership may help bring longer term consistency and retain talent that will contribute to a sustainable future. What’s more, organisations who train their leaders and managers have a clear competitive advantage as studies consistently find that those trained in coaching skills increase employee empowerment, sustainable performance and health and wellbeing.
For further guidance read Building sustainable behaviours in organisations – the roles leaders and HR can play
Embedding the right leadership capabilities
Challenge: Leaders have a lot on their plate even at the best of times. So, what capabilities do they need to lead in challenging times? What will enable them to pilot through uncertainty, engage and develop talent, make difficult decisions and stay on course with the focus on the long-term? And in particular, what do they need to understand to be the best leadership versions of themselves?
Solution: Invest in leadership development focused on emotional regulation. Emotionally regulated leaders are able to listen carefully, appreciate multiple points of view and move ideas forward – and they make better decisions as a result. It helps them behave in a consistent way by being themselves and more consistency brings more consistent results. They understand their emotions and know why they are reacting to something and are more likely to react appropriately. They speak with more clarity too so people can engage more easily
For further reading: How to develop a Leadership Development programme
The pressure to be perfect
Challenge: Leaders have competing priorities in a climate of constant change and often feel they have to conform to a vision of perfection, with all the answers. It can take its toll and become a fast track to burnout. When the health of a leader is at risk, so is the rest of the organisation.
Solution: We see this a lot with leaders – but we also don’t know anyone who is perfect. So stop trying to be. Leaders can’t have all the answers and nor should they feel they have to. The leaders who will thrive will bring their authenticity and humanness to work. It’ll help them work out what’s really going on, build stronger relationships and better manage challenges.
In conclusion
We hope this will help organisations be more ready for what is coming their way this year. With every challenge, there is an opportunity to bring a different kind of energy, with a little more reality. No one person can possibly have all the answers, but the more organisations focus L&D on helping us work better as human beings, mindful of the real lives behind who we bring to work, the stronger we will all be 12 months from now.
Further reading: Real Leaders
If you want to explore the leadership issues raised by this article in more depth, you may find our new book of help. Real Leaders: A Practical Guide to the Essential Qualities of Effective Leadership unpacks and examines all the psychological and behavioural traits that characterise many great leaders. We demonstrate how to adopt and adapt these common attributes and develop your own authentic leadership style.
Download the first chapter here – no need to give any details.
https://monkeypuzzletraining.co.uk/free-resources/free-1st-chapter-of-real-leaders
