2025 has had an interesting start for Canadians. We’re on the brink of a trade war with the United States, and our economic future is uncertain. As the tariffs are implemented, many sectors and all Canadians will feel the impact.
This economic hardship will force many companies to make changes. The first thought many would have to cut costs would be downsizing and layoffs. In a recruiting market that is already notoriously difficult to find qualified candidates/top talent, terminating reliable and competent employees as a quick fix may not be the right move for you.
Current employees may decide to “jump ship” if they feel that the economic impacts from the tariffs decrease their sense of job security via potential layoffs or their perceived economic viability of the company in the future.
With that in mind, here are a few tips to help retain and improve your workforce.
Upskilling/Reskilling
Instead of laying off proven employees, upskilling or reskilling them is an attractive alternative.
Upskilling is the act of increasing and improving the skills that your employees possess to assist their performance in their current role or to prepare them for a promotion into a role that requires new skills in addition to those they currently possess.
Reskilling is the act of preparing your employees for a shift into a new role where their current skills won’t carry over.
Both of these tools will help retain your trusted employees by providing you with alternative options to termination. When deciding what is best for your company, keep in mind the difficulty and financial/time costs involved in recruiting when your economic situation improves.
Benefits/work-life balance
While the foreseeable economic future isn’t the brightest, there are many ways to make your business more attractive to work for that don’t break the bank. Offering flexible working conditions through remote work or hybridization, when possible, is an increasingly desired benefit that many employees have high on their priority list. Offering more paid time off compared to your competitors is another cost-efficient way to increase the desirability of working for your company.
Working conditions
When it comes to retaining employees in times of economic stress, maintaining the confidence of your employees is key. If rumours about financial struggles start to spread, many workers will start to lose a sense of job security and start looking elsewhere.
Keep your current working conditions in place when possible and ensure that any financial constraints you may be experiencing are kept from spreading as workplace rumours. If you make large, sweeping changes to existing working conditions, uncertainty in the company’s future will be at the front of your workers’ minds.
If you have work-life balance incentives, from firm lunches to fitness reimbursement plans, keeping those in place will go a long way to maintaining your employees’ satisfaction and confidence in your company.
In difficult economic times, cuts or layoffs may be a necessity; however, when possible, choosing to invest and believe in your employees may just be what gets your business through it.
Dylan Coffey
Human Resources