The first 100 days of Donald Trump’s second term as US president were marked by controversial policies, including sweeping trade tariffs that sent shockwaves through the global economy. Countries were hit by Trump’s ‘liberation day’ tariffs, which led to global market volatility and an escalating trade war between the US and China.
The UK government has welcomed a new trade deal with the US, easing initial tariffs which included a 25% tax on aluminium, steel and cars. But the reality of an unpredictable global market remains. UK businesses are expected to exercise greater caution and lower investment, amid ongoing risk of job losses, hiring freezes and continued supply chain disruption.
Read more: CIPD warns of rising redundancies
In times of rapid economic change and uncertainty, HR professionals should build a workforce culture that can not only withstand disruption but come out stronger because of it, according to Clare Burns, group HR director for currency exchange business Travelex. “This means anticipating challenges and aligning talent strategies with business objectives that can quickly adapt to shifting market conditions,” she explains.
“HR teams must champion initiatives that promote agility, continuous learning and employee wellbeing. As HR leaders, we must empower our teams to embrace change with confidence and clarity.”
Suki Kaur, senior people business partner for the Health Foundation charity via talent consultancy The Maine Group, emphasises the importance of remaining alert to future changes, highlighting the unique position of HR leaders in bolstering business resilience. “Considering the challenges ahead, characterised by fluctuating labour laws and changes in government policy, it is imperative to remain agile and well-informed,” says Kaur.
“Engaging with industry trends, and participating in professional networks, enhances our understanding of legislative developments that affect our workforce. By prioritising employee development, fostering open communication, and establishing a robust support system, HR leaders can enhance organisational stability and morale, ensuring the business thrives even amidst external economic challenges,” she adds.
Face the challenges
Industries directly affected by the tariffs, such as UK car makers, have faced the most uncertainty. The Institute For Public Policy Research think tank warned in early April that 25,000 UK jobs could be at risk due to Trump’s initial car import tariffs.
Uncertainty can be highly disruptive, says Krisztina Nemeth, HR director for asset management firm Dominus, as it impacts stakeholders at every level. HR professionals are frequently on the frontline of the impact, she adds.
An adaptable organisational structure is essential, according to Nemeth. “Strategic workforce planning, is key as well as identifying areas that are likely to be impacted and swiftly responding with reskilling,” she explains. “Change is constant, so innovation, a proactive mindset, clear communication, and the responsible integration of technology are essential to staying ahead of the curve.”
When it comes to bolstering business resilience, “HR has the advantage of workforce data, which can help identify potential skill gaps early,” Nemeth adds. “Proactively addressing these through strategies such as reskilling, investing in technology, and driving digital transformation can help to prepare the business for the future.”
Catering to the evolving needs of the workforce with targeted support programmes can also help combat fears over job cuts and reduced business investment, says Kaur, while creating a sense of stability and work/life balance. HR leaders can also promote upskilling initiatives, to enhance employee career prospects within the organisation.
“Cultivating a culture of innovation encourages employees to contribute ideas and solutions that enable the business to pivot in response to economic shifts,” says Kaur.
For Burns, it’s equally important “to ensure teams are agile, and our skill set and workload can be reallocated across the business if required”, in order to address future challenges.
Transparency is key
HR professionals carry the mantle when it comes to supporting employees through times of stress or change. As Karl Bennett, chair of the UK Employee Assistance Professionals Association, put it, “when the world feels uncertain, HR’s job is to help people feel steady.”
This means “recognising that economic stress doesn’t stay at the door, it follows people into work,” says Bennett. HR must be “visible, calm and, most importantly, human.”
Prioritising transparent, clear communication during times of uncertainty is widely advised. Leaders should “allow colleagues to raise concerns in an open forum. Never leave a question unanswered,” advises Burns.
Colleagues look to leaders for reassurance, says Joanne Wright, people and culture director for insurance broker Specialist Risk Group, so leaders “need to be brave, clear, and transparent. They should be open about what impact the economic uncertainty brings to the business: where you can be creative about cost, how this will impact future recruitment and investment, and what you can do to manage this together.”
This article was published in the May/June 2025 edition of HR magazine.
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