Managing the workforce in economic uncertainty 

It is not often that there is such economic volatility as is happening now for the retail and consumer goods industry, and broader society. However, since the Spring of 2020, the uncertainty of events is increasingly having an impact on workforces and employers. In case it continues to happen, we may experience a regular whipsaw effect on wages and worker mental health.

Specifically happening today, based on supply and demand, if there is no product to put on trucks, in warehouses and store shelves, employers may not be open to hire or address worker compensation and health. Yet, when supply is restored, employers may look to re-hire or hire at higher wage rates to attract talent to work. The events cause a variability whipsaw in the workforce and to workers. In variability situations, the pressing nature of short-term issues often overshadows the ability to engage at work. For example, we know from Mercer’s 2023-2024 Inside Employees’ Minds Study that workers are expressing that meeting their daily expenses and other financial needs are contributing to stressors that negatively impact mental health.

We are sharing the following actions that employers can take to maintain workforce engagement and mitigate the variability whipsaw. While some of these actions directly address long-term financial actions, each one is a proposal to help employers and workers during economic uncertainty.