Failure to resolve conflict can damage employee trust
Economic crisis can bring about tension in the workplace. When a business falls on hard times, it’s important to remember that employers and employees are also only human, dealing with complex problems at work or at home, a lawyer points out. In these challenging times, how can businesses maintain harmony in their employment relations?
“There is no magic line which separates home life from the workplace,” said John Farrow, a partner at Anderson Lloyd, who specialises in labour and employment law. In light of the COVID-19 crisis, “employees and employers alike may be experiencing very real stress in their personal lives. Their partners and their family may be suffering economic hardship and issues with their health.”
Read more: COVID layoffs: How to terminate workers in crisis
Initiatives for teams to be more efficient, cut costs and provide better service will thus “create additional pressure,” Farrow said. “Employers need to be aware of pressures in the workplace but also genuinely enquire about issues their employees may be experiencing at home as these might impact on their performance at work.”
It’s a give-and-take situation. “Employers will be focused on the survival of their business, their own livelihood and on the well-being of their employees. Ideally, employers and employees will be working together to ensure that the business not only survives but also thrives. This requires consistent and genuine communication,” Farrow said.
Read more: Can you fire a worker for medical incapacity?
One challenge employers typically notice in a crisis is low morale. “Employees and employers alike will be experiencing stress outside of the workplace, and there will likely be a significant increase in mental and physical health issues,” the lawyer said. “These may well impact not only on productivity but on workplace behaviour.
“Conflict amongst workers and conflict between workers and management are also likely to increase. Based on past experience, such as the Christchurch earthquake, traumatic events can cause people to reassess their priorities,” he said. “This can lead to restlessness, disengagement and decrease in motivation.”
Overall, people’s experiences of the crisis will differ. “Even though these [work-from-home] arrangements may not have been ideal for the employer, employees may want to maintain them. Again, communication will be the key to resolving such issues,” Farrow said.
Eager to learn more about employment and labour laws? Sign up for the HRD Employment Law Masterclass now.
