Navigating volatility is essential in a world where the only constant is change. Managing amid uncertain times is a necessary skill that demands resilience, agile decision-making, and a shift in perspective.
This blog post provides the mindset, tools, and actionable strategies to help you face labor market challenges head-on and deliver results regardless of the circumstances. We’ll share a roadmap grounded in our years of experience serving clients across emerging markets, with insights you can apply to your organization. Equip yourself with a resource that helps you stay resilient and adapt to the rapid pace of change.
The nature of volatility
Volatility is often used in finance, but its application extends beyond stocks and bonds. In the broader sense, volatility refers to the degree of variation or instability. In the business continuity context, this could mean unforeseen circumstances that disrupt the normal dynamics of the labor market.
Examples of volatility include:
- Hyperinflation, devaluation, and other economic events
- Natural disasters, such as earthquakes
- Periods of unrest, civil war, or armed conflict
The key lies in understanding volatility and learning how to manage it. In this way, you can ensure your organization’s sustainability.
Remember, uncertainty is part of the world we live in. Accepting this is the first step to managing it effectively.
The need for strategic planning in HR
Human resources (HR) plays a crucial role in managing volatility. As the hub for workforce management, HR helps ensure the organization’s stability while adapting to changing circumstances. Your people are your greatest asset, and ensuring staff feel secure and supported is important.
Strategic planning in HR is, thus, essential. Planning involves identifying, managing, and mitigating risks and ensuring the organization has the right tools and policies to address them. Planning allows HR to anticipate and prepare for volatility rather than merely reacting. It’s about thinking ahead.
Strategic planning also fosters a proactive culture within the organization. By actively seeking out and addressing issues, HR can inspire employee confidence, encouraging a sense of security and stability even during uncertain times.
Key strategies and tools to manage volatility
Managing volatility effectively requires both strategic thinking and practical action. Here are a few key strategies and tools that can help you navigate uncertain times with resilience:
Stay updated on news and current events. Knowledge is power. Staying informed about current affairs around the world is essential, particularly during times of uncertainty. We recommend you begin by reading our headline articles, which provide the latest updates on local market conditions.
Monitor labor market movement. In a dynamic global economy, it is crucial to watch for changes in labor markets. This involves keeping a firm pulse using reliable resources, such as our bi-monthly Market Monitor report. Our report draws insights from our diligent monitoring of exchange rate movements of local currencies against the United States dollar, euro, and other major currencies.
We mainly focus on emerging markets, given their inherent volatility and susceptibility to unexpected events. This strategy allows us to provide relevant and insightful data, ensuring you can react to market trends.
Define your Compensation Policy. Another strategy is to define how your organization will remunerate its employees. The Compensation Policy includes the mechanics for paying base salary, cash and in-kind benefits, as well as non-salary and after-service benefits, providing a holistic view of the total compensation structure. The policy builds transparency, setting clear expectations for compensating staff.
Establish your Special Measures Policy. Staff want to rely on you to support them during a crisis. Managers want to be able to make decisions quickly in challenging times. A clear Special Measures Policy addresses these concerns. This policy, designed to supplement your existing Compensation Policy, outlines what the organization will do when certain uncontrollable events—like hyperinflation or a natural disaster—occur and monitoring the labor market is no longer sufficient.
Get in touch with consultants and other employers. No organization is an island. Reach out to consultants and other employers for insights and collaboration. It’s crucial to foster a shared understanding of labor market trends and devise responses to market volatility.
Additionally, engaging with an HR consultancy like Birches Group can help you gain valuable insights into the intricacies of HR management. Open dialogues with industry peers can offer a diverse perspective on handling workforce challenges, helping your organization thrive amidst uncertain times.
Case Study: Effective HR Management in Times of Volatility
To illustrate how you can apply these tools and strategies in a real-world context, let’s look at a case study: a global public health initiative operating in markets where economic conditions can become unsettled due to a range of factors. During such situations, the Initiative recognizes the need to support its staff in facing hardships related to volatility.
The Initiative has tapped the expertise of Birches Group in designing a Special Measures Policy to address the challenges posed by market instability and to ensure the continuity of its operations while upholding its core principles. The policy is driven by key objectives such as business continuity, staff assistance, and competitiveness.
Birches Group designed a Special Measures Policy that covers the following:
- The conditions that will trigger the start of the policy,
- The measures that will be applied, and
- The level of coordination involved in conducting the policy.
The policy provided the Initiative with a systematic approach to responding to instabilities in local markets. Establishing such a policy also allowed the Initiative to take the lead in helping staff amid uncertainty while being mindful of actions taken in the market.
The Initiative has taken a proactive approach to implementing special measures when necessary. The organization checks market conditions, assesses the impact on its staff, and considers the broader economic context.
Being proactive amidst uncertain times
In the face of volatility, be proactive rather than reactive. This involves anticipating changes, planning for various scenarios, and continually striving for improvement. It’s about taking charge of the situation rather than simply reacting.
Remember, being proactive means being ready for whatever comes your way. By applying our recommended tools and strategies, you can confidently navigate uncertain times and ensure your organization’s sustainability in the face of volatility.
How Birches Group can help you manage volatility
At Birches Group, we understand the challenges of managing volatility and are here to help. We offer various HR services and tools to help you navigate uncertain times effectively. Whether through sharing guides and resources or designing your organization’s Compensation or Special Measures policy, we can support you in navigating volatility successfully.
As a global HR consultancy, Birches Group offers tools and strategies to manage volatility effectively. Our team of experienced consultants can help you understand the nature of volatility and develop appropriate policies.
Does your organization need guidance in managing staff amid uncertain times? Contact us today.
Carla is a part-time copywriter in our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.
Follow us on LinkedIn for more content on pay management and HR solutions.