As the global economic slowdown continues to make waves, we decided to take a deeper look into actions that HR leaders are engaged with and should take into consideration.
During previous economic crises, some tech companies chose to pursue R&D efforts towards innovation-led growth rather than just focus on cost reduction. According to this McKinsey study, through-crisis innovators tend to outperform the market. In a survey conducted among Compete users, 6 out of every 10 believed that now is a fitting time to take such initiative.
Amit Rapaport, CEO and Co-founder of Compete stated, “I believe this can be a wise and even necessary course of action, bearing in mind your company type, business lifecycle, and budget. This does not mean making radical strategic shifts, but it requires allocating resources, focus, and efforts in order to have a competitive advantage at hand for when the market will be ready.”
In light of these and other difficult dilemmas, we gathered a few top tech leaders to share their thoughts and provide insights on how to “Navigate the Market Storm”. Panel speakers included Arnon Barzilay, Head of Sales at Stripe Israel, Michal Livny, SVP of People Operations at Innovid, Tomer Diari, General Partner at Aleph, and our own Amit Rapaport.
Here are the key takeaways from the event:
- Over correction as a reaction to the situation (layoffs, salary reductions etc.) can be risky and should be avoided. At this point in time, the balancing act between efficiency and growth should focus more on efficiency.
- The staff expects and requires continuous updates and transparent communication, especially in times of crisis. This will help reinforce collectiveness and motivation to keep the eye on the big picture.
- Invest in field managers and empower them to effectively lead their teams. Working with them closely can create long and short-term impacts that will be felt across the organization.
- Employees are intelligent and mature, and they expect their leaders to make tough, responsible decisions. Organizations that don’t take action can anticipate an insecure workforce.
- Contingency plans such as talent mapping for numerous different scenarios should be part of a well thought out strategy which the CEO and management will want to see.
Though we are currently not in a recession, there is a probability we are close to one. That being said, times of crisis also present a great opportunity for learning and increasing efficiency. Ensuring a strong organizational culture can serve as both the hull and the compass that help steer the ship and its passengers to safer shores.