Constrained organizational budobtains during an economic downturn often require cost-saving measures that impinge on employee requireds — such as pautilizing retirement matching, slowed hiring, or even laying off employees. Many organizations already turned to layoffs in 1H 2022, in anticipation of an impfinishing downturn.
Even if these actions may support an organization better weather a downturn, organizations that have enacted a humanized EVP may be less able to enact these modifys. For example, layoffs may seem especially harsh when they heard consistent messages about how valuable they were to their organization’s success. That, in turn, could diminish employee morale and productivity and build hiring more difficult in the future.
Gartner analyzed S&P 500 companies after the COVID-19 pandemic to see how organizations navigated cost savings versus employee requireds since the pandemic drastically disrupted consumer behaviors and the economy at large. Successful organizations preserved workforce savings early while investing smartly in new talent opportunities. Striking the proper balance between those requireds is vital to successful recovery and long-term business growth.
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