If supply chain issues, rising costs, workforce shortages, wage increases, superannuation guarantee increases and rising inflation weren’t enough pressure for businesses to cope with, the RBA’s latest interest rate increase adds further pressure. And yes, in response businesses are looking at ways to cut costs and increase prices.
However, to navigate this perfect storm, business leaders need to consider the human impact, not just the operational impact, to steer through the next 12 months successfully because all of us are experiencing the impact of these rate increases, not just mortgage holders, as living costs rise and disposable incomes lessen. And that impacts businesses.
After two years of pandemic lockdowns, and continued uncertainty with the current environment, it’s not unreasonable to say people are tired and stressed. Your employees are under enormous pressure, and that inevitably impacts your bottom line. Your business impacts your people, and your people impact your business and more than ever, as a leader you need to have a greater focus on your people.
How can you create a psychologically safe place where people feel wanted and connected, where their work doesn’t add stress (in a bad way) or alienate people, but supports them?
The answer, as leaders, often lies in ourselves. How can we become better people and better leaders? Perhaps it’s time to dust off and reread your old copy of Daniel Goleman’s Emotional Intelligence to become more empathetic and human-focused. Perhaps it’s time to look after your own personal welfare or improve your communication and listening skills. Yes, businesses need to make money and it’s for that very reason that having a human focus and looking after your people is vital. Not just ticking boxes but really caring for your people is key, because they will look after your bottom line. And besides when you think about it, isn’t the right thing to do.
