Navigating tariff challenges: Strengthening employee engagement amid uncertainty 

The fluctuating global tariff environment is creating uncertainty throughout the economy and within organizations across Canada. As unpredictability rises, so does employee anxiety and stress. Organizations are now rethinking all facets of their businesses, including production locations, pricing strategies, supply chain management and, of course, people strategies. These shifts necessitate a more resilient and adaptive workforce. Organizations that proactively communicate with transparency and empathy can build employee trust, drive engagement and be better positioned to attract and retain key talent during these unprecedented times.

Hard times can lead to hard decisions. Whether implementing cost-saving measures through cuts to employee programs or restructuring the workforce, taking an empathetic approach during announcements demonstrates that leaders understand and value the human impact of these decisions.

Due to the complex administrative and emotional challenges associated with these decisions, businesses can face additional disruptions and even public relations backlash if they are not handled properly. Leading with empathy can minimize these risks. 

Employees will naturally turn to their managers if they have questions, concerns or need additional support. Managers must be prepared to deliver top-down messaging and provide consistent communication. Empowering leaders at all levels to convey the same messages helps create a cohesive leadership presence throughout the organization, fostering clarity, trust and alignment.

Equipping managers with a comprehensive toolkit, including talking points and FAQs, can help them navigate sensitive conversations effectively and avoid conflicting messaging that may lead to unnecessary stress and anxiety.

There is a fine line between keeping employees informed and overwhelming them with excessive information. Messaging should be transparent and thoughtful, clearly explaining the reasons behind decisions and ensuring employees understand the context and what it means for them. This approach helps organizations affirm their point of view, minimize rumours and remain open and honest with employees.

During volatile times, it is paramount to keep employees informed about changes affecting their roles. Providing a single source of truth ensures that communications are timely, accessible and relevant, helping to alleviate anxiety and prevent misinformation from spreading throughout the workforce. 

Consider implementing a one-stop digital portal that consolidates company messaging and thought leadership on tariffs, internal policy changes and additional resources for financial and mental wellbeing. 

This is an opportune time to educate employees about the existing benefits and resources available through the company, such as a retirement and savings plan or an employee and family assistance program. Assist employees in navigating these programs and consider hosting educational sessions on budgeting and financial planning to equip them with the tools they need to make informed financial choices.

During periods of uncertainty, it is important to check in on your employees’ wellbeing. Conducting pulse surveys or hosting Town Halls with Q&A sessions can provide insights on how employees are coping with the ongoing situation and how you can better support them. These measures can also help ensure that you are investing your time, money and energy in the right areas by identifying what’s working and what’s not.

The new tariff environment presents both challenges and opportunities for organizations to revisit and refine their employee engagement strategy. Effective communications can lead employees through this journey, no matter what direction it takes. Taking these steps can help influence and shape employee behaviour, and help you maintain efficiency and productivity throughout this time of uncertainty.

With communication and change management experts in six Canadian cities, Mercer Canada has extensive experience guiding clients through uncertainty and is uniquely equipped to help you address employee anxieties and stay ahead of evolving economic and political changes. Reach out to learn more.