An HR Response to Tariffs

As significant tariffs are imposed on international trading partners and supply chains, more and more U.S. businesses and organizations will experience higher costs and economic challenges that will put pressure on their bottom line. They may have to impose hiring freezes, and scale back on incentives like raises and bonuses. And everyday people (i.e., employees) will feel the impact of tariffs outside of work too, as they pay higher prices for everything from basics like food, clothing, and housing to big-ticket extras like new cars and vacations.

So how does HR figure amid the current economic uncertainty? Now is the time for HR professionals to think about how to attract and retain the best people for their organizations in ways other than financial. Let’s talk about some of the things we value at work other than the money. The following are also ways to add value to your organization and the experience of being a part of it:

• Respect: We all want to work in a civil, inclusive, and friendly environment. One in which we feel physically and psychologically safe. One where everyone is treated with respect. Make sure that you convey your organization’s commitment to a respectful workplace.
• Good Communication: Respectful, effective communication among employees and between management, administration, and staff is essential to maintaining a well-oiled machine. One in which everyone is invited to politely express their opinions, disagree without being disagreeable, and contribute their ideas.
• Engagement: Engaging employees by communicating the goals and aspirations of their organization through social activities, newsletters, and programs helps to keep people interested and motivated. Encouraging participation increases engagement.
• Flexibility: Today’s employees value flexible schedules, and the opportunity to work onsite, offsite, or a combination of both. There is increasing evidence that flexibility offers the best chance of achieving a healthy work/life balance.
• Opportunity for Growth: Employees who are offered opportunities to learn and enhance existing skills or develop new ones are growing for themselves and their organizations. Conversely, a feeling of stagnation is often cited as motivation to look for other employment.
• Recognition: Everyone wants to be appreciated. Regularly recognizing and thanking employees for their contributions is part of a healthy workplace culture.

So if your organization needs to reduce bonuses or postpone or reduce raises in an uncertain economic climate, just remember that there are ways to compensate and increase the happiness and well-being of your organization and the people who make it work.