Canadian employers in sectors that have been hardest hit by the U.S. trade war can support employees’ mental and financial wellness by communicating clearly about the potential impact and available benefits and resources.
A recent survey of 400 Canadian employers by Mercer Canada found while half (48 per cent) of all respondents are still determining the financial impact of U.S. tariffs on their businesses, among manufacturing companies, a third (33 per cent) expect a high impact from tariffs on their financial performance and half (50 per cent) reported their employees are worried about the potential impacts on their jobs.
This week, the U.S. Court of International Trade blocked most of President Donald Trump’s tariffs on U.S. trading partners, including those levied against Canada on the basis of stopping fentanyl from crossing the border. However, the 25 per cent tariffs on Canadian aluminum and steel imports remain in place.
At a time of uncertainty, communication allows companies to share their understanding of the key issues and then inform employees of the actions that are being taken, says Elizabeth English, a senior principal at Mercer Canada.
“Industries have taken a different level of employee communications [amid the trade war], with manufacturing companies leading the way. These employee communications range from town halls, preparing FAQs for people managers and reminding employees of their wellness programs, especially [employee assistance programs], during a time of stress and anxiety for a lot of Canadians.”
She notes employers’ benefits communications strategies will vary depending on whether companies are adding new benefits or reminding employees of existing resources during a stressful time.
It’s also important for companies to consider supporting employees in the event of a job loss, says English, adding it’s helpful to plan out short-, medium- and long-term supports for workers.
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“When we think about the geopolitical landscape we’re all facing . . . at the moment, [many employers] are making sure their core programs are sound — their job evaluation strategy is in place, the career path is clear and going back to basics and communicating that with employees to help navigate and hopefully quell some of this anxiety.
“Long term is about 18 months out, when we’re starting to think about employee upskilling and re-skilling opportunities,” she adds.
And with the trade war taking place roughly five years since the start of the coronavirus pandemic, there are plenty of lessons from the health crisis that employers can put to use during these turbulent economic times.
“A lot of companies have been dusting off their pandemic playbook and a lot of it came down to communication, giving updates to employees, listening to the employees to understand their concerns and [managers] bringing an emotional vulnerability and checking in on employees’ mental health,” says English.
“I think communication has really emerged as a critical factor in maintaining employee engagement levels in this world of uncertainty. Employers need to look at everything, from their suppliers to their pricing, but they also need to think about their employees, which are often their most valuable resource.”