Managing Employees During a Crisis: HR Strategies

Introduction

The COVID-19 pandemic presented unique challenges for human resource professionals and business leaders alike. Such crises typically cause unpredictability and fear among employees, which can result in emotional disturbance, feelings of loss of control, and disorientation. Depending on the scale of the crisis, organizations may be forced to administer pay cuts, cancel bonus programs, adopt new modes of working such as teleworking, and freeze hiring (Aguinis & Burgi-Tian, 2021). For instance, at the height of the COVID-19 pandemic in March 2020, 42 percent of companies in Canada and the United States had frozen hiring (Aguinis & Burgi-Tian, 2021). In April 2020 alone, over 390,000 people in Europe and 7.7 million workers in the American hospitality industry lost their jobs (Aguinis & Burgi-Tian, 2021). Globally, 37 percent of companies in the US instituted bonus reductions, 42 percent administered salary freezes, and 29 percent administered pay cuts between March and May 2020 (Aguinis & Burgi-Tian, 2021).

Such measures, though necessary for a company's survival, may lead to fragmented team cohesion, declining morale, and reduced work performance (Zheng, 2020). This paper examines the employee-management challenges that organizations may have to address in a crisis and recommends strategies for addressing each challenge.

Unexpected Changes in Working Conditions

According to Hamouche (2021), employee management refers to the various efforts an organization undertakes to ensure that employees do their best every day to help the organization realize its objectives. During a crisis, one of the fundamental challenges that leaders face in achieving this is the alteration of working conditions, which leads to different modes of functioning (Hamouche, 2021). In the wake of the COVID-19 pandemic, for instance, organizations altered their working conditions to allow employees to work remotely. However, not all jobs can be carried out remotely — manufacturing jobs, for example, may require physical presence at the workplace. Thus, human resource personnel must determine which jobs are to be carried out remotely, what to do with those that require employees to report physically to the workplace, and which employees to lay off because of the crisis situation (Hamouche, 2021). All of these unexpected decisions pose significant challenges for managers and carry serious implications for employee mental health.

For jobs that can be carried out remotely, managers must devise ways of investing in technological tools that facilitate communication and help employees work effectively away from the office (Hamouche, 2021). They also need to consider possible realignments of compensation structures, differences in performance management, and adequate supervision support for remote employees. Altered working conditions can undermine employees' psychological health by creating misalignments between the person and the environment. According to Hamouche (2021), they can also cause job dissatisfaction as a result of altered socialization processes.

Available literature recommends that managers devise diverse activities to support their employees in handling the psychological challenges associated with altered work environments. For instance, managers could create virtual socialization activities for employees forced to work remotely — organizing virtual coffee or lunch breaks, for example, so employees can socialize with each other and share any challenges they may be facing. This ensures that all employees feel like part of the organizational culture despite being away from the physical office (Hamouche, 2021).

Further, managers need to invest in systems that enhance constant communication with employees to create feelings of normalcy despite the changes (Nguyen, 2020). One way to do this is by ensuring that employees are provided with the right technological resources — such as mobile devices — so they can work as effectively in their new environments as in their normal work environments (Hamouche, 2021). Tools such as Microsoft Teams, TeamViewer, Microsoft Remote Desktop, and Zoom can help ensure consistent communication between managers and remote employees. However, Hamouche (2021) cautions against overusing such systems, as doing so may make employees uncomfortable or create perceptions that their manager does not trust them. For example, policies requiring employees to keep their microphones and cameras on throughout the entire workday may be detrimental to the employment relationship.

Unplanned Staffing Challenges

Staffing involves recruiting and retaining competent employees to help an organization realize its goals (Hamouche, 2021). Crisis situations carry certain repercussions for staffing. Depending on the scale of the crisis, organizations typically experience shrinking revenues and financial challenges that may force them to lay off employees, freeze hiring, or cut down on high-skill positions as they seek to minimize costs (Hamouche, 2021). As part of cost-cutting, organizations may lay off contractual employees and opt for more flexible employment arrangements such as freelancers and subcontractors. Hamouche (2021) notes that all of these sudden staffing changes can damage employment relationships, leading to reduced morale and increased turnover. Furthermore, crisis situations may limit an organization's ability to attract competent employees, particularly in industries most affected by the crisis, as skilled individuals may opt for opportunities in less-affected sectors.

Hamouche (2021) advises managers to increase employees' engagement and sense of belonging to minimize the effect of uncertainty brought about by staffing disruptions. First, managers should develop a culture of listening to their employees in order to understand their concerns and grievances. Burley-Allen (2007) identifies three levels of listening that differ based on the listener's behavior. Level one — the most effective — is when the listener views the speaker's message as a source of new, useful information and strives to understand things from the speaker's perspective, free from personal attitudes and biases. Level two listening is less effective: the listener hears what the speaker says but does not take time to understand the speaker's intent, which often leads to negative feelings, misinformed actions, and misunderstandings (Burley-Allen, 2007). The third level of listening is the least effective, as the listener is more interested in speaking and therefore focuses on finding fault in the speaker's message (Burley-Allen, 2007).

Based on these insights, it is important that managers practice level-one listening — focusing on understanding employees' fears, concerns, and grievances with respect and genuine intent (Burley-Allen, 2007). Beyond listening, it is advisable that managers tell their employees the truth about the situation so that employees can prepare adequately and any perceptions of unfairness can be eliminated (Mollica, 2007). For instance, if employees face possible salary cuts, the manager should explain the company's current financial situation, how the decision was reached, and the potential impact on the organization. At the same time, managers should demonstrate genuine interest in employees' success — for example, by informing them that conditions may improve if the organization secures alternative funding (Mollica, 2007). This approach helps build employees' trust and confidence in their manager.

Conclusion

This paper sought to identify the challenges that managers face in managing employees during a crisis and the measures they can take to address those challenges. The topic is crucial because it prepares managers for crisis situations and provides key insights on how to retain talent and minimize costs. The paper categorizes the challenges into four areas: changes in working conditions, uncertainties around staffing, difficulty in carrying out performance management, and inadequate compensation systems.

With regard to altered working conditions, managers face the challenge of determining which jobs can be carried out remotely, which require physical presence, and which positions must be eliminated as a result of the crisis. The paper recommends that managers devise diverse activities to support employees' psychological wellbeing in altered work environments, such as virtual socialization activities, and that they invest in systems that foster constant communication to create a sense of normalcy. With regard to staffing, declining revenues force managers to make difficult decisions around hiring freezes, salary cuts, and bonus reductions — all of which increase the risk of dissatisfaction and high turnover. The paper proposes that managers increase employee engagement and belonging by actively listening to employees' concerns and providing honest, accurate information about the organization's situation to build trust and confidence.

Thirdly, managers face difficulties carrying out performance management given unexpected changes in working conditions. Investing in digital predicting and flagging tools — tied to timekeeping, CCTV, and point-of-sale systems — can help monitor and maintain performance remotely. Finally, managers face the challenge of developing effective compensation structures that are commensurate with each job's risk level. They can address this by adopting intrinsic motivation strategies such as increasing employee autonomy and providing resources to control workplace hazards, thereby minimizing risk exposure and supporting long-term retention.

References

Aguinis, H., & Burgi-Tian, J. (2021). Talent management challenges during Covid-19 and beyond: Performance management to the rescue. Business Research Quarterly, 24(3), 233–240.

Burley-Allen, M. (2007). Learn how to listen effectively to enhance employee relationships. Society for Human Resource Management.

Hamouche, S. (2021). Human resource management and the Covid-19 crisis: Implications, challenges, opportunities, and future organizational directions. Journal of Management and Organization, 1–16. https://doi.org/10.1017/jmo.2021.15

Mollica, K. (2007). Seven strategies for being seen as a fair boss. Society for Human Resource Management. Retrieved from https://www.shrm.org/hr-today/news/hr-magazine/pages/0604mollica.aspx

Nguyen, A. (2020). On the clock and at home: Post-Covid-19 employee monitoring in the workplace. People Strategy, 43(3).

Zheng, W. (2020). 5 strategies to support your employees through a crisis. Harvard Business Review. Retrieved from https://hbr.org/2020/10/5-strategies-to-support-your-employees-through-a-crisis