According to a survey of 2,000 businesses conducted by the Chartered Institute of Personnel and Development (CIPD), just over a third are planning redundancies or reducing recruitment ahead of the National Insurance and Minimum Wage increases this April.

42% of those surveyed stated they will raise prices to offset the increased costs, while 25% are considering cancelling or scaling down plans for investment or expansion.

The chief executive of the CIPD, Peter Cheese, described these findings as the “most significant downward changes in employer sentiment we’ve seen in the last 10 years, outside of the pandemic.”

Separately, research conducted by the Federation of Small Businesses also found that confidence among small businesses has dropped to its lowest level in a decade, excluding the Covid pandemic period.

These surveys contribute to a growing chorus of concern from businesses. The British Chambers of Commerce reported last month that a survey of almost 5,000 members suggested confidence is at its lowest level in two years.

Amid such pessimistic sentiment, how can you and your team maintain confidence? Here are five suggestions:

  1. Foster a resilient mindset – Remind yourself and your team that challenges like these are temporary and part of business cycles. Reflecting on past difficulties you’ve overcome can help build confidence in your ability to adapt.
  2. Focus on strengths – Identify and highlight what is working well in your business. Celebrating small wins can help keep your team motivated and engaged.
  3. Transparent communication – Openly share challenges and opportunities with your team. Transparency fosters trust, collaboration, and maintains morale.
  4. Embrace innovation – View challenges as opportunities for growth. Shifting perspectives from survival mode to innovation mode can lead to new ideas and solutions.
  5. Long-term vision – Keep the bigger picture in mind. Remember that tough economic conditions are often temporary, and businesses that remain positive and forward-thinking tend to emerge stronger.

By prioritising optimism, resilience, and adaptability, you can sustain confidence and inspire your team to thrive even during uncertain times.

See: https://www.bbc.co.uk/news/articles/ckg7gewqevqo