The CHRO mandate: Maintaining morale in times of crisis
3 min read
As part of our CHRO series, Kate McCormack, Head of Assessment and development explains why HR leaders are now central in maintaining employee morale during difficult periods.
The pandemic propelled CHROs and other HR leaders into strategically critical roles. They were tasked with the abrupt shift to remote work, safeguarding employee health, and managing communication in an entirely novel scenario. It is unsurprising then, that LinkedIn research from late 2023 found 82% of global leaders view the HR function as more critical now than ever.
HR’s achievements during the pandemic placed a spotlight on the function’s leaders – particularly, their ability to simultaneously maintain operational continuity and employee morale during an unprecedented health crisis. As a result, HR leadership’s ascent to the executive table has been accelerated.
This is well-earned recognition, yet it comes with greater responsibilities. 93% of CEOs are faced with a dozen or more ongoing challenges – many of which threaten employee morale, impacting productivity, wellbeing, and engagement. Having proven themselves during the global pandemic, CHROs will find their CEOs increasingly turning to them as essential partners in navigating employees through these complex challenges.
Employee morale faces an uncertain future
The frequency and impact of disruptions affecting employees is increasing, driven by global and national trends that exacerbate one another. Mental health, the cost of living, and artificial intelligence fuel a worsening crisis undermining employee morale.
Six in 10 employees in medium-to-large companies in Ireland report feeling depressed or down, with work itself found to negatively impact the mental health of nearly a third of employees. Almost all (nine in 10), believe that employers have a responsibility to protect the mental health of their staff.
The cost of living crisis has much to answer for here. 85% of Irish employees admitted to experiencing anxiety in the past six months over money worries. In addition to hampering productively and engagement, it directly impacts retention – over half of employees are looking to change jobs for a higher salary (56%).
This is a crisis only made worse by the prevailing anxiety surrounding artificial intelligence. One in four Irish workers believe AI will impact or replace their job in the future with 83% of those over 40 believing they will need to retrain as the Gen AI boom accelerates. Other surveys reveal a similar sentiment, with 60% of employees now worried about the impact of AI on their jobs.
Resilience: The strategy for sustaining employee morale
Companies often implement a variety of initiatives aimed at improving employee morale, from health and wellness programmes to support networks and flexible working arrangements. While these measures are beneficial, they often serve as temporary fixes to deeper organisational challenges.
Instead, we now see many CHROs implementing a more robust, long-term strategy focused on embedding resilience within the fabric of their organisations. This approach not only addresses immediate employee needs but also builds a foundation for sustained employee engagement and productivity. In short, it prepares the workforce to handle future crises more effectively.
While methods may differ, embedding resilience often centres around a three-step process, focusing on the organisation’s purpose, values, and goals. This begins by defining a clear purpose and setting a clear mandate. These goals should meet current and future stakeholder needs, and is about being clear on the organisation’s ‘what’ and its ‘why.’
From this position, CHROs can define what the organisation stands for. These values should reflect the type of culture that will ensure the organisation can deliver on its purpose. With a clear strategic direction, and a set of values, HR can then help align the organisation toward future goals aimed at delivering on the business strategy.
Many CHROs we work with are focused on this kind of organisational alignment where they bring employees together around common values and goals. This strategy fosters unity, adaptability, self-sufficiency, empowerment, and ownership among their workforces. Employees develop goal-oriented mindsets, embrace continuous learning in order to adapt to new technologies, and are less likely to leave or experience burnout. Critically, McKinsey found resilient organisations that possessed these attributes were able to withstand the major disruptions during 2020 and 2021.
The right HR leader can make all the difference
The challenges facing organisations and their surrounding ecosystems are escalating in both regularity and complexity. Organisations are grappling with labour shortages, escalating workplace stress, growing political division, and the imperative to swiftly adapt to AI. To thrive amidst these ongoing crises, organisations must cultivate profound resilience – and this begins with HR.
Odgers Berndtson is a global executive search firm with local offices in over 30 countries. This enables us to identify, assess, and appoint leading CHROs and other HR leaders from an expansive network of national and international leadership talent. It means organisations can hire the best HR leader for their needs.
For more information or help with your next HR leadership appointment, get in touch: kate.mccormack@odgersberndtson.com