Overcoming Economic Uncertainty in 2023
Overcoming Economic Uncertainty in 2023
Continued economic uncertainty continues to dominate the business landscape in Australia. However, as businesses begin to recover from the challenges faced over the last three years, they now need to prepare for a potential recession in 2023.
A recent survey by GoTo and OnePoll found 79 per cent of Australian business owners believe one will occur in the next 6 months. Amongst this chaos, businesses need to ensure employees feel unified with the business through economic challenges.
Honesty through uncertainty
The consequences of the last three years have led to a series of supply chain disruptions and labour shortages, spiking the cost of living and disturbing the economy. This has had a significant impact on the way we work.
GoTo’s survey found that 56 per cent of business leaders felt COVID-19 has impacted the way employees now work and act in 2022. Furthermore, 41 per cent cited inflation and the rising cost of living as affecting employee choices with working.
Ensuring employees are connected to the organisation during economic uncertainty can be difficult so there needs to be a focus on transparency and strategy in how budgets are utilised. Businesses that remain open and honest with employees during economic instability will reduce insecurity and instability among staff.
Communicating effectively and clearly across a range of channels about business updates, regularly checking in with employees about their well-being, and seeking feedback will build a united workplace.
Build a barricade against challenging business conditions
Demonstrating to employees that the business is taking the right steps to future-proof and unify against economic instability brings peace of mind to employees.
Many businesses are taking actions such as creating business continuity plans (47%), having a product that is cost-effective to produce (46%) and improving employee morale (46%) to prepare for economic uncertainty.
To add further stability, businesses can look to save 3 months' worth of profits as an emergency buffer, diversify business cash flow and consolidate their technology stack.
The right technology is integral
Technology is pivotal for businesses to future-proof employees during economic instability.
Eighty-four per cent of Australian business owners believe ensuring employee devices are working properly is vital to be prepared for future issues, which coincides with the fact 71 per cent of employees are now updating employee devices annually.
When businesses utilise the correct technology for employees, it builds a higher quality work environment, and brings ease to work operations, reducing stress and further futureproofing the workplace.
A variety of factors will continue to impact the economy. As businesses prepare for an economic downturn, it is critical that business decisions relate back to unifying employees with the business.
Transparency is vital, and by effectively utilising the business budget to implement the right technology, improve morale and be future-proof against recession, businesses can ensure their employees and organisation is united through economic uncertainty in the new year.
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Tags: covid-19 coaching small business 2023 success
