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A toxic employee can have far-reaching negative effects on the workplace, impacting not just individual coworkers but the entire organizational culture and overall productivity.

Toxic behaviour may include persistent negativity, manipulation, bullying, gossip, insubordination, or a lack of accountability, all of which could damage the reputation of the business.

“If you’re a company that has high turnover rates, a lot of that often has to do with the environment,” says Stephen Mitchell, President of Innersee Initiatives Inc.,  a Cambridge-based consulting firm that focuses on group and leadership development and organizational transition. “Is it a toxic environment I’m working in? I don’t enjoy coming to work and that can be within what I do at work and within the people I work with. Are they creating the environment that I can’t fit in or assimilate into?”

Quite often, organizations may have employees who are quick to react and as a result, other employees or even those in leadership roles, feel intimidated to make practical suggestions or be more productive because they get drawn down.

“That’s kind of like bullying,” says Stephen, adding it can work the opposite for a more introverted employee. “Maybe you’re not as driven so you don’t work as hard if your work environment allows you to get away things, such as leaving early. You may not intentionally be creating a toxic environment, but other employees may resent it.”

One of the most immediate and visible effects of a toxic employee is the decline in team morale. Their behaviour often creates tension and mistrust among colleagues. 

Erosion of trust in management

For example, if an employee frequently gossips or undermines coworkers, it can lead to a toxic atmosphere where people feel the need to watch their backs instead of collaborating openly. This can reduce team cohesion, increase conflicts, and make it difficult for employees to work together effectively.

Toxic employees can also erode trust in management if their behaviour is allowed to continue unchecked. When coworkers see that bad behaviour is tolerated or ignored—especially if the employee is high-performing—it can lead to feelings of unfairness and resentment.

This perception of favouritism or negligence can further demoralize staff and lead to disengagement.

Stephen says leaders who do not react to situations like these and allow them to simmer could result in further complications.

“Not addressing it is the reason why you’re going to start to see higher turnover,” he says, adding speculation in the workplace can be even more harmful, especially surrounding the roles employees play in the organization. 

Stephen refers to workshops he has facilitated with clients in which employees with different duties are paired with each other to participate in a ‘fun exercise’ in effort to create an open dialogue and create a better understanding of each other’s roles.

Communication key for success

“Communication is key to everything,” he says. “I think that one of the biggest things leaders and managers forget is the importance of communication. It is important to communicate the health of the business and communicate the direction of the business.”

Stephen says the economic pressures many businesses are facing due to the geopolitical climate makes this even more imperative. 

“We have all these questions around what’s going to happen next. What’s going to happen with these tariffs? Are we going to have a job next year? What is our action plan for new markets and looking for new business?” he says, adding how easy it is for gossip to spread. “Make sure that as a leader you’re communicating where the direction of the business is taking everyone.”

Stephen also recommends the need for leaders to acknowledge the work of employees, which can be a boost to their mental health.

“As leaders we get focused on making sure the next job comes in or that paycheques are going to be there at the end of the week,” he says. “But we forget sometimes that recognition goes a long way to retaining associates.”

Organizations must take proactive steps—such as setting clear behavioural expectations, offering support, and being willing to take disciplinary action—to address toxic behaviour before it undermines the entire workplace. Addressing the issue early is essential not just for the health of individual employees, but for the long-term success of the organization.

Tips on how business leaders should handle toxic employees

Recognizing toxic behaviour

Toxicity may manifest in several ways: persistent negativity, gossiping, passive-aggressive communication, bullying, manipulation, resistance to teamwork, or undermining authority. These behaviours not only affect interpersonal dynamics but can also discourage high performers, create division, and reduce overall engagement. Leaders should differentiate between a difficult employee—who may be underperforming or struggling—and a toxic one, whose behaviour actively harms the team. This distinction is important because it determines the course of action: development versus discipline.

Direct and constructive feedback

Avoiding conflict is one of the most common leadership pitfalls when dealing with toxic employees. Instead, leaders should initiate a private, respectful, and direct conversation with the individual. Use specific examples of the toxic behaviour, its impact on the team or company, and explain why it is unacceptable.

Offer support but set boundaries

If the employee is open to change, leaders should provide support through coaching, training, or even professional counselling if appropriate. Sometimes toxic behaviour is a result of unresolved conflict, miscommunication, or a mismatch between job role and skill set. However, support must be balanced with accountability. Make it clear that change is non-negotiable, and that ongoing toxic behaviour will lead to further disciplinary actions.

Involve HR early

Human Resources should be involved as early as possible in handling toxic behaviour, especially if the issues are serious or recurring. HR can offer guidance on legal considerations, help with formal documentation and performance improvement plans (PIPs), and mediate between employees or between employee and leadership.

Take decisive action when needed

If a toxic employee fails to change despite feedback and support, leaders must take decisive action. This may include demotion or role reassignment, probation or a final warning, or t termination of employment.

Build a preventive culture

Beyond individual cases, leaders should foster a culture that discourages toxicity promote open communication and psychological safety and reinforce core values regularly. Also, it’s important to recognize and reward positive behaviours and conduct regular team check-ins and anonymous feedback surveys.

Hiring new immigrants can offer Canadian businesses a rich source of talent and diversity.

However, despite Canada's emphasis on immigration as a cornerstone of its economic strategy with immigration accounting for nearly 100% of our labour force growth, businesses often encounter several challenges when attempting to integrate newcomers into their workforce.

“Immigrants in mid-sized Canadian cities often face challenges in finding employment due to a combination of factors related to their qualifications, experience, and the local job market,” says Nora Whittington, Community Engagement Coordinator at Immigration Partnership. “These include difficulties with foreign credential recognition, a lack of Canadian work experience, limited professional networks, language barriers, and sometimes, even perceived or actual discrimination.”

One of the major challenges is the recognition of foreign credentials and professional experience. Many immigrants arrive in Canada with education and work experience from other countries that are not easily understood or accepted by Canadian regulatory bodies or employers.

This mismatch often leads to underemployment, where highly skilled newcomers are hired for roles well below their qualifications. Businesses may be hesitant to hire individuals if they are unsure whether the person's background aligns with Canadian standards, even if the candidate is capable and qualified.

While some professions in Canada are regulated and require local licensing (such as medicine or law), many others do not. Employers should become more familiar with international education systems and certifications or seek assistance from credential assessment services.

Creating internal systems or hiring HR personnel who understand international qualifications can also help business leaders and managers accurately evaluate candidates’ backgrounds and prevent the undervaluation of their skills.

As well, experts encourage businesses to adjust job postings to clarify what skills and competencies are actually necessary rather than requiring candidates to have prior ‘Canadian experience’, which has become a vague catch-all. They can also provide onboarding or mentorship programs that help immigrants acclimate to workplace norms, reducing any actual gaps in local knowledge.

“Business owners/managers can consider their job postings and that they are created in a way that attracts immigrants and using terms that can be understood, to ensure that they are known as an inclusive and welcoming employer (word of mouth is powerful) and to know that job postings can express a wish list and it can eliminate great talent because they may feel like they don’t have all the qualifications,” says Nora, adding there are many cultures that do not use resumes and cover letters and to be considerate of this difference. “Know that many immigrants are highly educated and to not eliminate them from the hiring process but rather look at their transferrable skills.”

Many job opportunities in Canada are filled through informal networks or referrals, putting immigrants at a disadvantage if they lack established professional connections.

To counter this, businesses should diversify their recruitment strategies by partnering with immigrant-serving organizations, attending job fairs targeted at newcomers, and posting openings on platforms that cater to internationally trained professionals.

“Employers should be engaged with organizations and services in the community who work closely with immigrant talent. There are several organizations in the region who prepare immigrants for employment in the Canadian workplace,” says Nora, noting the work Immigration Partnership does in Waterloo Region, describing the organization as a ‘bridge builder’. “Any topic that we believe will create success for employers and immigrant talent we will present so that the bridges can be built.”

While Canadian immigration policy aims to attract skilled talent from around the world, several structural and practical challenges still hinder businesses from effectively hiring and integrating newcomers. Addressing these issues requires collaboration between employers, government agencies, and community organizations, and some progress has been made. 

“While there can be challenges in integrating immigrants into the labor market, such as overqualification or language barriers, Canada has made efforts to address these issues and ensure that immigrants can fully utilize their skills and talents,” says Nora. 

Why immigration is important for Canada's talent pipeline

• Addressing Labor Shortages:

Immigration helps fill critical gaps in the Canadian labour market, particularly in sectors experiencing shortages of skilled workers. 

• Boosting Innovation and Economic Growth:

Immigrants bring diverse skills, perspectives, and experiences, which can foster innovation and drive economic growth. 

• Supporting Population Growth:

As Canada's population ages, immigration helps to maintain a healthy workforce and support economic development. 

• Enhancing Competitiveness:

Canada competes with other countries for skilled talent, and its immigration system helps it attract top talent from around the world. 

• Building a Diverse Workforce:

Immigration contributes to a more diverse and inclusive workforce, which can be beneficial for businesses and communities. 

• Filling Specific Needs:

Immigration policies are often targeted to address specific labor market needs, such as in healthcare or technology.

Some ways businesses can modify hiring practices 

Rethink the ‘Canadian experience’ requirement

Employers should focus on relevant international experience and transferable skills. They can also provide onboarding or mentorship programs that help immigrants acclimate to workplace norms, reducing any actual gaps in local knowledge.

Implement bias-reduction techniques in screening

Companies should consider using blind recruitment practices, where personal identifiers such as name, nationality, or even educational institutions are removed during the initial screening. Also, standardized interview questions and diverse hiring panels can help reduce individual bias and lead to more objective decision-making.

Promote inclusive workplace culture

For businesses to truly benefit from the skills of new immigrants, they must foster an inclusive and supportive work environment. This includes offering language support if needed, celebrating cultural diversity, and ensuring clear communication practices. Cross-cultural training for both management and staff can improve collaboration and team dynamics. Moreover, mentorship programs that pair newcomers with experienced employees can provide the guidance and networking opportunities that immigrants often lack upon arrival.

Canadian businesses are grappling with significant challenges stemming from U.S. President Donald Trump's imposition of tariffs.

These measures have introduced economic uncertainty, disrupted supply chains, and strained the historically robust trade relationship between Canada and the United States.

That uncertainty has been compared to what many businesses felt when the pandemic virtually shut down the economy, creating chaos and confusion.

To assist the local business community as they did then, the Cambridge Chamber of Commerce and Greater Kitchener Waterloo Chamber of Commerce have relaunched their Ask the Expert initiative to share information and resources.

Held online every Thursday from 9 a.m. to 10 a.m., Ask the Expert provides business operators the opportunity to discuss their concerns, as well as hear the latest news and insights from a variety of professionals surrounding the issues related to this escalating trade war, including federal aid programs.

Global growth slowdown

Among those who recently shared their knowledge was Automotive Parts Manufacturers’ Association (APMA) CEO Flavio Volpe who discussed, among other things, the impact tariffs will have on auto industry on both sides of the border. 

“It almost feels a little bit like we are in the early days of the pandemic when business owners we’re just trying to understand what was happening,” says Cambridge Chamber President and CEO Greg Durocher, describing the uncertainty currently being felt by business owners.

The Organization for Economic Co-operation and Development (OECD) has highlighted the detrimental impact of these tariffs on the global economy, with particular emphasis on Canada.

The OECD forecasts a slowdown in global growth to 3.1% in 2025 and 3.0% in 2026, attributing this deceleration partly to the trade tensions initiated by the U.S. Specifically, Canada's economic growth is projected to decline to 0.7% in 2025, a significant reduction that underscores the profound effect of the tariffs on the nation's economic trajectory.

Eroded business confidence

The unpredictability associated with the on-again, off-again nature of the tariffs has eroded business confidence.

The latest CEO Confidence Index from Chief Executive magazine indicates a significant drop, reaching the lowest level since November 2012. This decline is attributed to the fluctuating tariff policies between the U.S., Canada, and Mexico, which have made long-term planning and investment decisions increasingly challenging for businesses.

Executives from major financial institutions have voiced concerns about the negative impact of this uncertainty on business operations and economic stability. 

Greg says that uncertainty is clear, noting many of those logging on to Ask the Expert are smaller business owners who may not be directly impacted by tariffs but more from the trickle-down effects of a prolonged trade war.

“Nobody really knows yet what those impacts will be,” he says. “The people joining us really want to know more about timing and when things are going to happen. I think some of the concerns are morphing away from talk of annexation and are now touching on the realization that there is something really wrong in the U.S.”

To join an Ask the Expert conversation, visit www.chambercheck.ca (which offers resources and information to help businesses) and sign up. 

For those who can’t participate live, Ask the Expert videos are posted on  www.chambercheck.ca  and the Cambridge Chamber of Commerce YouTube channel. 

Federal aid package info

In response to U.S. tariff impositions that have disrupted trade and heightened economic uncertainty, the Canadian government has introduced a comprehensive aid package exceeding $6 billion to support affected businesses. The key components of this financial assistance include:

1. Trade Impact Program by Export Development Canada (EDC):

With its newly launched Trade Impact Program, EDC is prepared to facilitate an additional $5 billion over two years in support. This program aims to:

• Market Diversification: Assist exporters in identifying and penetrating new international markets, reducing reliance on the U.S. market.

• Risk Mitigation: Provide solutions to manage challenges such as non-payment risks, currency fluctuations, and cash flow constraints.

• Expansion Support: Offer financial backing to overcome barriers hindering business growth and international expansion.

These measures are designed to help companies navigate the economic challenges posed by the tariffs and adapt to the evolving trade environment. 

Government of Canada.

2. Business Development Bank of Canada (BDC) Financing:

To support businesses directly affected by the tariffs, the BDC is providing $500 million in favorably priced loans. Key features include:

• Loan Amounts: Businesses can access loans ranging from $100,000 to $2 million.

• Flexible Terms: Loans come with favorable interest rates and flexible repayment options, including the possibility of deferring principal payments for up to 12 months.

• Advisory Services: Beyond financing, BDC offers advisory services in areas such as financial management and market diversification to strengthen business resilience.

This initiative aims to provide immediate financial relief and support long-term strategic planning for affected businesses. 

3. Farm Credit Canada (FCC) Support for Agriculture and Food Industry:

Recognizing the unique challenges faced by the agriculture and food sectors, the government has allocated $1 billion in new financing through FCC. This support includes:

• Additional Credit Lines: Access to an additional credit line of up to $500,000 for eligible businesses.

• New Term Loans: Provision of new term loans to address specific financial needs arising from the tariffs.

• Payment Deferrals: Current FCC customers have the option to defer principal payments on existing loans for up to 12 months.

These measures are intended to alleviate cash flow challenges, allowing businesses to adjust to the new operating environment and continue supplying high-quality agricultural and food products. 

4. Enhancements to the Employment Insurance (EI) Work-Sharing Program:

To mitigate layoffs and retain skilled workers, the government has introduced temporary flexibilities to the EI Work-Sharing Program:

• Extended Duration: The maximum duration of work-sharing agreements has been extended from 38 weeks to 76 weeks.

• Increased Access: Adjustments have been made to make the program more accessible to businesses experiencing a downturn due to the tariffs.

This program allows employees to work reduced hours while receiving EI benefits, helping employers retain experienced staff and enabling workers to maintain their employment and skills during periods of reduced business activity. 

5. Strengthening Investment Protections:

To safeguard Canadian businesses from potentially harmful foreign takeovers during this period of economic vulnerability, the government has updated the Investment Canada Act Guidelines. While Canada continues to welcome foreign investment, these updates ensure that any investments posing risks to economic security can be thoroughly reviewed and addressed.

Click here to learn more.

While the recent 30-day postponement of U.S. President Donald Trump’s tariffs and Canada’s retaliatory measures came as welcomed news to businesses, the lingering presence of these threats remain prompting the Chamber network to act using a variety of tactics, including advocacy, negotiation, education and promoting partnerships.

Trump’s demand for 25 per cent blanket tariffs on all Canadian goods, with the exception of a 10 per cent tariff on Canadian energy, and Canada’s proposed retaliatory tariffs on $155 billion of U.S. goods, has sent economic shockwaves through both nations prompting calls for action on both sides of the border.

To clearly map out the vital importance of the trading relationship between the two countries and the risks businesses face, the Canadian Chamber of Commerce’s Business Data Lab has introduced the Canada-U.S. Trade Tracker —a new tool designed to illustrate the ties between the two economies. It notes that $3.6 billion in goods crosses the Canada-U.S. border daily, generating a $1.3 trillion annual trade relationship.

"A 30-day delay means more time for Canadian businesses and governments to drive home the point that tariffs make no sense between the two closest allies the world has ever known,” said Candace Laing, President and CEO, Canadian Chamber of Commerce, in a release. “The Canadian Chamber, our network and businesses across the country will spend every day of it fighting hard to secure this historic, robust trading relationship. Raising the cost of living for Americans and Canadians with these taxes is the wrong move. Canada and the U.S. make things together, and we should in fact be building on that.”

Call to dismantle interprovincial trade barriers

It is a sentiment echoed by her colleagues at the Ontario Chamber of Commerce who have rallied their members, which includes the Cambridge Chamber, in a show of unity and strength and targeted actions including supporting a unified call for Canadian premiers to quickly dismantle interprovincial trade barriers and the creation of a business and trade leadership coalition.

Called the Ontario Business & Trade Leadership Coalition (OBTLC), it aims to unit leaders from key trade-dependent sectors to champion business-driven solutions, advocate for effective government policies, and solidify Ontario’s position as a global leader in trade.

“President Trump has claimed the U.S. doesn’t need Canada – but we are here to show just how invaluable we are. Ontario businesses are stepping up to safeguard our economy and reinforce our global competitiveness,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce, in a release. “The Ontario Business & Trade Leadership Coalition represents a united response – a coalition of industry leaders committed to resilience, collaboration, and growth.”

BestWR brings business groups together

But the fight to ward off economic turmoil caused by these tariff threats has also been ramped up locally, says Cambridge Chamber of Commerce President and CEO Greg Durocher, through the revival of a unique partnership created during the pandemic to assist businesses.

“We created the Business Economic Support Team of Waterloo Region (BestWR) during COIVD-19 consisting of organizations that are fundamentally engaged in the economic activities through business in the region and have brought it back as a support mechanism for local businesses with respect to trade,” he explains. “It was created during the pandemic, but this is now really about a united force of business organizations helping local businesses navigate these turbulent trade waters.”

Besides the Cambridge and Greater Kitchener Waterloo Chambers, BestWR also includes Waterloo EDC, Communitech and Explore Waterloo Region.

“We are engaged right now with regional municipalities to create opportunities whereby we can offer a support role in helping local businesses find local or Canadian suppliers, or to expose local businesses to the products they currently manufacture or sell and may be able to find Canadian customers for,” says Greg, noting BestWR also has strong federal and provincial connections which they will use to assist businesses.

“We have the insight to be able to tap into key levers within provincial government and within the federal government to have input on what potential supports those governments may need to provide businesses to keep them moving through this turmoil.”

Ask the Expert returns

As a further measure to assist, both the Cambridge and KW Chambers have revived their online tool 'Ask the Expert'.

These weekly Zoom calls - created during the pandemic to provide business leaders with current information – will now provide an opportunity for manufacturers and businesses in the region who export to the U.S. to ask questions.

“We will invite various experts to take part in the one-hour call, and hopefully get some answers to their questions and help them keep their business humming along and doing the things they need to do to support their employees,” says Greg.

'Ask the Expert' will take place every Thursday, between 9-10 a.m.

“This all about businesses,” he says. “And how do we navigate the turbulent challenges ahead and make it a win for Canadian businesses.”

The Chambers have also revamped the chambercheck website (which offered timely resources for businesses during the pandemic) to provide a growing list of trade-related resources to inform and assist businesses.

Reasons for businesses to remain confident and optimistic:

Economic Resilience

Canadian businesses have demonstrated remarkable resilience in the face of past economic challenges. Our diverse economy and strong trade relationships beyond the United States provide a buffer against potential disruptions.

United Response

The Canadian government, provincial leaders, and business organizations like your local Chamber of Commerce are presenting a united front in response to this threat. This co-ordinated approach strengthens our negotiating position and demonstrates our commitment to protecting Canadian interests.

Potential for Internal Growth

For years the Chamber network has been encouraging the government of Canada to remove interprovincial trade barriers and unlock the economic prosperity lying dormant in these archaic policies. This situation presents an opportunity to address long-standing interprovincial trade barriers and by removing them boost Canada's economy by up to $200 billion per year, potentially offsetting the impact of U.S. tariffs.

Mutual Economic Interests

It's important to remember that the proposed tariffs would also significantly harm the U.S. economy. American businesses and consumers would face higher costs and reduced competitiveness, which could lead to pressure on the U.S. administration to reconsider this approach. 

Time for Preparation

With the proposed tariffs not set to take effect until at least March 1, there is time for diplomatic efforts and for businesses to prepare contingency plans as we work our business contacts and channels to influence key stakeholders in the U.S.

Leveraging Canadian Assets

Canada continues to highlight its valuable assets that are strategically important to the U.S., including:

• Energy resources
• Critical minerals
• Nuclear power capabilities
• AI research excellence
• Lumber and building materials
• Automotive
• Agriculture

By emphasizing these assets, Canada is demonstrating that doing business with us is not just beneficial but strategically smarter than alternatives.

Government Support

The Canadian government has a track record of supporting businesses during trade disputes. We can expect measures to be put in place to assist affected industries if the tariffs are implemented.

As businesses navigate an era of rapid technological evolution, shifting workplace dynamics, and global interconnectedness, preparing your workforce for 2025 demands strategic foresight. 

The key to success lies in fostering adaptability, embracing technological advancements, cultivating a culture of continuous learning, and prioritizing employee well-being.

“Whether it's the benefits program, whether it's salaries, the expectations of employees have gone up and I think also to the expectation of the business culture,” says Frank Newman, owner of Newman Human Resources Consulting. “I think people are making more and more decisions based on workplace culture.”

He says since the pandemic, the continuing trend of creating a strong workplace will become even more apparent in 2025 and beyond as potential employees look for reasons why they should work for a particular company.

Strong communication

“If a business owner can't answer positively what it's like to work there, then that’s going to be a problem,” says Frank. “As an employer, you have to look at your internal culture and determine what is it like. Are we behaving as we say we are? What are our values? And because it's still a competitive world out there, how do we differentiate ourselves?”

Ensuring your company brand is on target is key when it comes to navigating the current hiring environment, which he believes has become less civil since the pandemic in terms of the way some potential employees disrespect a company’s time, in some cases by not even showing up for a scheduled interview.

“I think as people we've got used to a little bit lower standard. So, as an organization, if you want to be the preferred employer or even the preferred partner to work with as a business partner, you need to up your game a bit because that's going to put you in good stead for the long run,” says Frank, adding sending a ‘thank you’ response to potential candidates just for applying is one way to make a positive impression.

“You want to make sure you increase your communication standards because everything is now subject to online reviews. The whole review concept is important - whether it's employee reviews or whether it's customer reviews – and to be aware and make sure you check them monthly because you don't know what people are going to say about your business.”

Safe environment needed

Good communication with employees also remains key, he says, noting in wake of the pandemic mental health issues continue to be an ongoing issue for many companies.

“The latest trend now is to make sure you have an employee assistance plan that can help with mental health and other counseling needs people have,” says Frank. “We live in an age of stress. It’s about having some tools for people to access, such as mental health professionals, or even just making sure that employees feel comfortable sharing.”

Creating a psychologically safe environment is a big part of developing a mental health strategy that works, taking into consideration the various pressures employees are under at work and at home.

Frank recommends conducting a pulse survey as a way to quickly collect feedback from employees to gauge their impressions of where the company stands at the moment. Depending on the size of your workforce, he says sitting down for a coffee and an informal chat can also be just as effective. 

“It’s about keeping an ear to the ground in terms of what your employees are feeling and facing,” he says. “We don’t want tone deaf business owners; that’s not going to cut it these days and I think people are looking for more humanity from their business leaders.”

A continued trends towards hybrid work situations could also play into that sense of humanity as employers look for ways to engage with their online workforce.

“You’ve got to make sure you are finding ways to leverage that and build those connections when people are isolated at home,” says Frank, noting that many employers continue to see a surge in potential applicants when it comes to offering hybrid work. “Managers must think about that and what it does to their recruiting.”

Investing in leaders

He says trusting your employees promotes growth and productivity, and that mistrust erodes confidence.

“What companies should be thinking of now is really investing in leaders. So, it’s important to make sure your leaders are connecting with their people and being authentic,” says Frank. “Most people leave an organization not because of work, but because of the boss.”

He says trust also works in both directions, especially when it comes to companies maneuvering through the current economic and political turmoil facing businesses in North America.

“It’s really about planning ahead and also letting your employees know that you’re taking things seriously and have plans in place to deal with these issues, because sometimes they are not aware of what management is doing and that may create some uncertainty,” says Frank, noting when it comes to the future, a strong AI strategy to assist employees boost their productivity is also a key consideration. “Companies should be leveraging that as much as possible.”

How businesses can prepare their workforce for the challenges of the near future:

1. Embrace Technological Integration

The workforce of 2025 will operate in a tech-driven environment. Businesses should:

• Invest in Training: Equip employees with skills in artificial intelligence (AI), data analytics, and automation to remain competitive.
• Encourage Digital Literacy: Ensure that all employees, regardless of their role, are comfortable using digital tools.
• Leverage Collaboration Platforms: Utilize tools like Slack, Microsoft Teams, and project management software to streamline communication and project execution.

2.  Prioritize Employee Well-Being

The pandemic highlighted the importance of mental health and well-being. A healthy workforce is a productive workforce. Companies should:

• Implement Flexible Work Models: Offer remote, hybrid, or flexible hours to enhance work-life balance.
• Provide Mental Health Resources: Offer counseling services, wellness programs, and stress management workshops.
• Encourage Inclusion: Build a diverse and inclusive culture where employees feel valued and respected.

 3. Focus on Reskilling and Upskilling

As technology advances, certain skills will become obsolete while others gain prominence. To stay ahead:

• Identify Skill Gaps: Use skills assessments and workforce analytics to pinpoint areas for improvement.
• Offer Continuous Learning: Provide access to online courses, certifications, and on-the-job training. 
• Promote Leadership Development: Groom employees for future leadership roles through mentorship and coaching.

 4. Foster Agility and Innovation

The ability to adapt to change and innovate will be critical in 2025. Encourage:

• Agile Mindsets: Train employees to thrive in uncertain and dynamic environments.
• Collaborative Problem-Solving: Create cross-functional teams to foster diverse perspectives and solutions. 
• Employee Empowerment: Give employees autonomy and a voice in decision-making processes.

 5. Leverage Workforce Analytics

Data-driven decisions can significantly enhance workforce management. Businesses should:

• Monitor Performance Metrics: Use analytics to track productivity, engagement, and retention.
• Predict Trends: Anticipate future workforce needs based on current data. 
• Customize Experiences: Tailor learning and development initiatives to individual employee needs.

 6. Commit to Sustainability

The workforce increasingly values companies that prioritize environmental and social responsibility. Businesses should:

• Integrate ESG Goals: Align corporate strategies with environmental, social, and governance (ESG) principles.
• Engage Employees: Involve the workforce in sustainability initiatives and green practices.

As 2025 kicks off businesses must adjust to an economic landscape shaped by technological advancements, inflation, shifting consumer expectations, and global challenges. 

Therefore, preparing a business for the future requires strategic foresight, innovation, and a commitment to meeting emerging demands, something Peter Wright, President of The Planning Group, is very familiar.

“In my view, businesses this year should be focused much more on margins and pricing gains,” he says. “If they haven't already made big pricing gains post COVID, they should be saying where can we increase prices?”

Peter says whether the business is B2B or B2C, operators should be pondering how they can increase that component of profitability. 

“Most of the focus for a lot of businesses should be on trying to make those gains at the margin level partly through pricing, but partly through reducing the cost of goods rather than trying to make a bunch of cost cutting exercises in overheads because a lot of businesses have done that,” he says, noting the urge to reduce staffing costs is often very tempting. “They might say, ‘We’ve got this open position, so let’s just not hire someone for it’. But that position could be the thing that’s actually tied to an incredible value proposition the business is trying to achieve.”

Cutting staff can hurt business

Reducing staff can also lead to increased workloads for remaining employees, causing stress and burnout. Often, when employees feel overburdened and undervalued, their productivity declines, and engagement wanes.

Also, customer expectations are set to rise in 2025, with consumers demanding faster service, personalized interactions, and consistent quality and cutting staff can often compromise a company's ability to meet these demands. Longer response times, lower service quality, and limited innovation can erode customer loyalty, driving them to competitors.

As well, cutting back on staffing and spending often leads to a reduction in resources allocated to research and development (R&D) and other innovation-focused initiatives. Without investment in new ideas and technologies, companies risk falling behind competitors who are better equipped to adapt to changing market conditions.

Peter refers to the philosophy of author and business guru Tom Peters, and his book The Circle of Innovation: You Can’t Shrink Your Way to Greatness. “You can’t cut and cut and become a great enterprise,” he says.

Avoid being opportunistic

“I think for all businesses, not just small businesses, should be saying how can we differentiate? How can we set ourselves apart and how can we then not turn around and sell that?” says Peter, adding having everybody in the organization develop a strong a belief in the value of what it is they are selling is key to making that a reality.

He warns businesses not to be too opportunistic when it comes to mapping out their growth plans for 2025 and beyond.

“To me, the big misstep is being opportunistic and not actually clearly articulating where you're going to get your growth from,” says Peter, adding that ‘chasing rabbits’ - coining a phrase from an old Russian proverb – will not be good for business. “It goes, ‘If you chase two rabbits, you will not catch either one’; it teaches us that trying to achieve two things at once will be unfruitful.”

Strategies to ensure your business remains competitive and aligned with the needs of 2025:

1. Embrace Digital Transformation

Companies should invest in cutting-edge technologies such as artificial intelligence, machine learning, and automation to optimize operations, improve customer experiences, and streamline workflows. Additionally, businesses must adopt cloud computing to enhance scalability and flexibility, ensuring they can quickly adapt to market changes.

2. Focus on Sustainability

Businesses should adopt eco-friendly practices, such as reducing carbon footprints, sourcing sustainable materials, and implementing circular economy models. Transparency in environmental, social, and governance (ESG) efforts will not only improve brand reputation but also ensure compliance with stricter regulations expected in the coming years.

3. Leverage Data-Driven Decision Making

Companies must invest in analytics tools to gain actionable insights into customer preferences, market trends, and operational inefficiencies. By using predictive analytics, businesses can anticipate customer needs and stay ahead of competitors. Data privacy and security should also be top priorities to build trust with customers and comply with stringent data protection laws.

4. Prioritize Employee Development

Businesses should prioritize reskilling and upskilling their employees to keep pace with technological advancements and market demands. Offering flexible work arrangements, fostering inclusivity, and creating a supportive workplace culture will also help attract and retain top talent in 2025.

5. Enhance Customer-Centricity

Businesses should leverage omnichannel strategies to provide seamless and personalized customer experiences across digital and physical touchpoints. Incorporating AI-driven chatbots and virtual assistants can enhance customer support, while loyalty programs can help retain existing customers.

6. Adapt to Global and Local Trends

Companies must stay informed about global market trends while tailoring their offerings to meet the unique needs of local consumers. Geopolitical shifts, supply chain disruptions, and economic volatility also require businesses to maintain agility and resilience.

7. Foster Innovation and Agility

Encouraging creativity, experimenting with new ideas, and learning from failures are essential for staying relevant. Additionally, adopting agile methodologies can help organizations respond swiftly to changes in the market and customer demands.

The end to the recent Canada Post strike came as welcomed news to many businesses but it has inevitably raised concerns about the reliability of one of Canada’s primary delivery services.

While strikes are not uncommon, the disruption they cause can have lasting effects on stakeholder confidence. For many businesses, especially small and medium enterprises (SMEs), this disruption may have eroded trust in Canada Post as the overall impacts continue to be tallied. 

“This has been totally devastating to us and our 900 customers,” says Frank Mosey, owner of Tstone Mailing Inc., a Cambridge-based direct mailing business. “Currently, we have lost about 250K in revenue and that pales in comparison to what our customers are experiencing.”

He is not alone. According to Canadian Federation of Independent Business (CFIB) President Dan Kelly, smaller firms had been losing $100 million per day with a total damage of $1.6 billion since the month-long strike started Nov. 16.

“Nearly three-quarters of small firms report they will reduce their dependence on Canada Post going forward, making it even more challenging for the corporation to operate in the future,” he was quoted by the Financial Post.

Reliability an issue

To restore confidence, Canada Post will need to demonstrate its reliability in the months ahead. Proactive measures, such as transparent communication, operational improvements, and compensatory programs for affected businesses, could help mitigate lingering concerns.

“There’s no question about it, there is a lot of Canadian businesses that aren’t going to have faith in the Canadian postal system any longer and they are going to try and find alternative solutions; whether it’s through technology or whether it’s through other services that are available,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “I think the message to Canada Post is ‘you’d better fix what’s wrong’. Canada Post can't keep losing $750 million dollars a year and continue to operate and really needs to figure out how to do things better.”

While he believes Canada Post workers deserve a wage increase and to participate in a fair negotiation, he says the impact of this labour dispute reached the critical stage very quickly and that support for the 55,000 striking Canada Post workers rapidly waned as the strike dragged on. 

Key bargaining issues have centred around potential expansion into weekend deliveries, with the two sides at odds over how to staff the expansion, plus wage increases, a cost-of-living allowance, and more job protections. Canadian Union of Postal Workers (CUPW) members resumed operations Dec. 17 under the terms of the current collective agreements until May 22, 2025.

Businesses need predictability

During the strike, the Canadian Chamber of Commerce network sent two letters to Labour and Seniors Minister Steven MacKinnon and Public Services and Procurement Minister Jean-Yves Duclos, calling for intervention from the Federal Government to end the walkout. The letters were signed by Chambers and Boards of Trade nationwide, including the Cambridge Chamber.

“According to Statistics Canada’s Canadian Survey on Business Conditions, 90 percent of businesses that recently experienced supply chain obstacles expect those difficulties to either persist or worsen over the coming three months,” the second letter dated Dec. 11 stated. “Businesses need predictability in our supply chains, and yet another labour disruption has unfortunately continued the alarming trend of work stoppages limiting Canada’s ability to deliver goods. This issue extends far beyond gifts and holiday cards; it affects the viability of small businesses and families’ livelihoods.”

Greg agrees and says Canadian businesses should not be held responsible for Canada Post, especially if talk of a potential bailout surfaces if the Crown corporation can’t make the necessary repairs to its financial house.

Shipments continue to shrink

“I think Canada Post has to be responsible for itself. Canadian businesses will support it if it takes that responsibility and does the things it needs to do in order to become profitable, or at least break even,” he says.

In terms of finances, according to its 2023 Annual Report Canada Post recorded a loss before tax of $748 million, compared to a loss before tax of $548 million in 2022 and predicts larger unsustainable losses in the future unless structural challenges with its operating model are addressed.

Also, the postal service’s share of the parcel market has fallen to 29 per cent from 62 per cent before the COVID-19 pandemic, as Amazon and other competitors seized on skyrocketing demand for next-day doorstep deliveries. Canada Post’s shipments have shrunk by nearly a quarter since 2020 to 296 million parcels in 2023.

“Businesses are fed up with government agencies and institutions who leave them in a lurch at a very difficult time and they’re going to try find solutions that will give them a permanent fix to the problem,” says Greg. “I’m sure there are many Canadian businesses that have already done that.”

The following piece was submitted by Katrina Burch, Lead, Mental Health Promotion and Education CMHA Waterloo Wellington, who co-hosted a Chamber two-part ‘Mental Health in the Workplace’ seminar

October is Healthy Workplace Month and in today’s fast-paced, highly connected world, mental health has become a top priority for workplaces and with good reason, mental well-being directly impacts employee performance, satisfaction, and overall organizational success. 

Employers are recognizing that supporting mental health is not just the right thing to do but is essential for building a resilient and sustainable workforce. Studies consistently show that employees with good mental health are more productive, engaged, and loyal. In contrast, poor mental health can lead to absenteeism, high turnover, and decreased morale. But the question often remains what elements create a healthy workplace? 

Businesses at the beginning of their journey to support mental health can often feel overwhelmed with understanding of what to do and where to start. There are some simply ways to start changing the culture and understanding of mental health.

This could include sharing the resources available to employees whether that is an Employee and Family Assistance Program or the local mental health support and crisis numbers, such as Here 24/7 in Waterloo Wellington.

The inclusion of mental health training for managers and staff into onboarding or regular skill development helps to decrease stigma, while fostering an environment where employees feel safe to discuss their mental health and leaders are comfortable offering the proper assistance.

Assessing the current psychological health and safety of your workplace can also be helpful as a guide to develop an action plan, while also celebrating your successes.

Leaders must set boundaries

Understanding the signs that someone may be struggling with their mental health is key. These signs could include a change in performance, withdrawal from social interactions or team activities, increased absenteeism, difficulty concentrating, irritability or feelings of hopelessness.

It's crucial that leaders approach these situations with empathy and provide a supportive space for employees to share their experiences.  Additionally, leaders are not immune to mental health struggles. Business leaders should prioritize their own well-being by practising self-care and seeking help when needed.

It’s important to set boundaries, delegate tasks, and take breaks to recharge. Leaders should also make use of the same mental health resources available to employees, such as employee assistance programs (EAPs), therapy, or coaching.

By openly addressing their own mental health needs, leaders set a powerful example for their team, demonstrating that it’s okay to seek help when needed.

There are many resources out there to support this work for businesses of all sizes. Investing in mental health training for managers, such as workshops or webinars, can equip them with the tools to recognize and address mental health concerns.

For smaller businesses, Employee Assistance Programs are often more affordable compared to benefits and can provide confidential counseling and support services. Additionally, wellness apps or virtual therapy platforms can offer accessible mental health support at lower costs. 

Small businesses can also foster mental well-being by creating a work culture that emphasizes flexibility, work-life balance, and regular check-ins to gauge employee satisfaction and stress levels.

Open communication important

Businesses should embed mental health into the core of their company culture. This means maintaining open communication about mental health, regularly updating, and improving mental health policies, and ensuring leaders and employees receive ongoing training. Implementing regular assessments, anonymous surveys, and focus groups can help you stay attuned to employee needs.

Finally, recognize that mental health support should be continuous. Mental well-being isn’t something that can be addressed once and forgotten. By investing in long-term solutions, such as building a supportive and inclusive workplace culture and providing resources that evolve with the needs of your employees, you’ll ensure that both employees and leaders can thrive mentally, emotionally, and professionally.

By prioritizing mental health, businesses not only improve their employees' well-being but also foster a stronger, more engaged, and productive workforce.  Looking for assistance in developing your Psychological Health and Safety or Mental Well-Being programs?  

Share your information to connect and learn how we can support your organization's mental health initiatives.

A large majority of Canadian businesses are sluggish when it comes to the adoption of Generative Artificial Intelligence (Gen AI), according to the results of a recent report by the Canadian Chamber of Commerce’s Business Data Lab (BDL).

The 38-page report details how a multitude of barriers, along with a lack of trust in the new technology, could impede the adoption levels needed to improve Canada’s economic growth.

Locally, the report shows that 11% of businesses in Kitchener-Waterloo and Cambridge are "using", or "planning to use" Gen AI, compared to 18% in Toronto or 15% in Ottawa. 

The report, Prompting Productivity: Generative AI Adoption by Canadian Businesses, underscores how Gen AI (referring to Large Language Models bases and the practical applications built on top of them) can help tackle one of the most significant economic challenges facing Canadian prosperity and standard of life — low productivity — while also exploring what is holding Canadian businesses back from adopting AI technologies.

The results detailed in the report, compiled from a survey of 13,327 businesses in January and February of this year, shows that larger businesses are nearly twice as likely to adopt Gen AI compared to smaller businesses. Overall, the data shows that one in seven businesses (roughly 14%) – mostly larger businesses and industries with highly educated workers – are Gen AI adopters. 

Patrick Gill, BDL's Senior Director of Operations and Partnerships, and the report's lead author, says he's surprised more small businesses haven't been embracing this new technology. 

“I’ve never run into a small business owner who wasn’t run off their feet and wearing multiple hats or wish they could replicate themselves,” he says. “But that’s the nice thing about this tool. With little or at no cost a small business owner or team can leverage this to fill in some of their existing skills gaps.”

According to the report, the top three industries adopting AI includes information & culture (31%), professional services (28%), and finance and insurance (23%). The two lowest to adopt are agriculture, forestry, and fishing (8%) and construction (7%).

Building trust an issue

Patrick says historically, larger businesses usually face more barriers adopting new technologies due to the fact their operations are more complicated and often have technology ‘stacked’ on top of each other.

“Smaller businesses usually face less of a challenge,” he says. “Their biggest challenge has usually been ‘Do I have the money right now to invest in a new technology?.”

Besides potential costs, trust is also a key issue.

“Public trust and the perception of AI will definitely play a crucial role in the adoption of the technology going forward,” says Patrick, noting a survey released last year indicated that Canada was the third most pessimistic country in the world and that only 38% of Canadians view AI in a positive light, slightly ahead of those in the U.S. and France.

Patrick says the Business Data Lab report also indicates that people are nervous about what the adoption of Gen AI will mean for their jobs and notes most agree change will come in the way they conduct their jobs, versus losing them outright.

“Right now, the technology is predominantly being used to augment workers’ abilities and not to replace them entirely,” he says, adding many are looking at Gen AI as a tool that can accelerate production and improve quality and services in effort to reduce costs. “That’s incredibly important during this time of a high-cost operating environment.”

From a global perspective as interest in Gen AI continues to grow, the report indicates that Canadian businesses need to move fast to gain a competitive advantage over global competitors. Low productivity and business investment puts Canadians’ prosperity and living standards at risk and its GDP per capita is now significantly below the U.S. and the OECD (Organisation for Economic Co-operation and Development) average.

Businesses must ‘innovate or die’

“Gen AI is a generational opportunity to boost Canadian productivity at a time when our performance is steadily headed in the wrong direction. The time to prompt productivity and act is now. Canadian businesses must innovate or die, and that means embracing Gen AI,” says Patrick. “While adoption has begun in every industry, it’s likely not fast enough for Canada to be competitive on the global stage, especially since three in four Canadian businesses still haven’t tried Gen AI yet.”

Based on two adoption scenarios (“fast” and “slow”), the Canadian Chamber of Commerce’s BDL projects that Gen AI adoption by Canadian businesses will reach a tipping point of 50% in the next three to six years.  This may seem fast but is probably not fast enough to keep pace with global leaders. Businesses in the U.S., China and several European countries are investing heavily in AI, likely outpacing Canadian investment.

“Those who move first basically set the standards and capture the largest market share,” says Patrick. “And everyone else is perennially playing catch up.”

He hopes the findings in the BDL report may gently ‘nudge’ businesses into more experimentation when it comes to adopting Gen AI. 

“There are so many low costs and no cost options available, so experiment and give it a try,” says Patrick, explaining how AI can assist with creating emails, marketing, and promotional content, and well as new visuals. “Use and test it and eventually you’ll find a way.”

Click here to the read the report.

Key findings from the report

• Roughly 1 in 7 Canadian businesses (14%) are early Gen AI adopters. They are found within every Canadian industry and region, but are more likely to be exporters, larger businesses, industries with highly educated workers or emerging enterprises.
• Larger businesses are nearly twice as likely to use Gen AI than small businesses.
• 18% of Ontario businesses are ‘already using’ or ‘plan to use’ Gen AI (Toronto rate was 18%, while KW-Cambridge was 11%).
• On its current trajectory, Gen AI adoption by Canadian businesses could reach a tipping in the next 3 to 6 years — likely too slow to keep pace with global competitors.
• Depending on the rate of adoption, Gen AI could grow Canada’s productivity between 1% and 6% over the next decade.
• The factor of “trust” will be important for future adoption, with public interest and acceptance of AI likely being positively correlated with countries’ business adoption rates. Global IPSOS surveys reveal that Canadians are less knowledgeable and more nervous about AI than citizens of most other countries.
• Most businesses using Gen AI are predominately looking to accelerate content creation (69%) and automate work without job cuts (46%).
• Interestingly, replacing workers is not the primary driver of adoption, with only 1 in 8 businesses (13%) that use Gen AI cite its value for replacing employees. 
• Roughly 3 in 10 businesses cite hiring skilled employees and access to finance as top challenges to adopting new technologies.
• Almost 3 in 4 Canadian businesses (73%) have not even considered using Gen AI yet.
• Public interest and perception of the technology are likely additional major barriers to adoption by businesses. 
• It is recommended that Canadian businesses move fast to adopt Gen AI to gain a competitive advantage over global competitors. This means starting with small-scale pilot projects to validate the feasibility and impact of Gen AI before gradually expand to larger initiatives based on successful proofs of concept, all while training and preparing employees for its adoption.
• For its part, government can support Gen AI adoption by upskilling workers, setting adoption targets, tapping the private sector, and among other actions, ensuring regulation is proportionate and risk based.

Recommendations for business

Innovate or die: Canadian businesses need to move fast to gain a competitive advantage over global competitors. With Gen AI so accessible and applicable for every type of business, there is little excuse for Canadian businesses to sit on the sidelines. 

Pilot projects that measure uplift: Start with small pilot projects to validate the feasibility and impact of Gen AI. Compare metrics (e.g., efficiency, costs savings and revenue generation) before and after its implementation.

Change management and employee training: Prepare employees for the adoption of Gen AI. Provide training sessions, workshops, and resources to help them understand the technology and develop new workflows. 

Strategic alignment: Align Gen AI adoption with overall strategic goals. Identify where Gen AI can enhance existing processes, improve customer experience, or drive innovation. 

Data infrastructure and governance: Invest in robust data infrastructure and governance practices. High-quality data is essential for training Gen AI models. Ensure data privacy, security, and compliance. 

Talent acquisition and retention: Attract and retain talent skilled in Gen AI. Recruit data scientists, machine learning engineers and domain experts who can develop and deploy Gen AI solutions. 

Investment in cloud infrastructure: Leverage cloud platforms for scalable computing power. Cloud services facilitate model training, deployment, and maintenance, allowing businesses to experiment and iterate efficiently. 

Leverage public resources: Move faster by basing policies on the federal government’s Guide on the use of Gen AI or tapping available funding, such as the NRC’s (National Research Council of Canada) IRAP AI Assist Program.

In the dynamic landscape of modern business, where competition is fierce and innovation is paramount, the role of effective leadership cannot be overstated. Among the many responsibilities of business leaders, one crucial aspect often stands out: conducting performance management reviews. These periodic evaluations of employee performance are not merely administrative tasks but essential components of a thriving organizational culture.

“People really need to have those conversations because quite often they’re operating in a vacuum,” says Debra Burke, Head of Client Success at HR2 Business Solutions, adding most people believe they are doing a good job and take pride in their work. "And in the absence of any feedback to the contrary, they go about their merry way with that. But you just can’t come around and surprise people afterwards if you haven’t had those conversation with them.”

Performance management reviews provide a structured mechanism for evaluating employee contributions and aligning them with organizational goals. By assessing individual performance against predefined objectives, leaders can gauge the effectiveness of their workforce in driving the company's mission forward.

This evaluation helps identify high performers who deserve recognition and rewards, as well as areas where improvement or additional support may be needed. Such insights enable leaders to make informed decisions regarding talent development, resource allocation, and strategic planning.

But how a manager or leader initiates the process should be done in a positive way, says Debra.

“When you say, ‘performance review’, sometimes I feel we can go down a negative road,” she says. “It has mixed messages for people, especially those who have had really bad experiences with those kinds of things. I prefer performance conversations.”

Setting clear expectations vital

Debra believes that employees want a clear understanding of how their performance is being viewed, especially when it may relate to compensation or promotions, and when they know that their work will be evaluated regularly and objectively, they are more likely to stay focused, motivated, and committed to achieving excellence.

By setting clear expectations and providing constructive feedback, leaders empower their teams to take ownership of their roles and strive for continuous improvement. This culture of accountability not only enhances individual performance but also cultivates a sense of trust and camaraderie among colleagues.

“Having those conversations is absolutely critical and managers and leaders need to get better at them because to be honest, many are not,” says Debra, adding some may lack the necessary training. “When you become a manager or move into a leadership role, it’s certainly not everyone’s forte to be very adept at having those difficult conversations.”

She says it’s easy to offer praise, but that performance conversations can be much more nuanced when it comes to outlining potential strengths and weaknesses. 

“At a minimum, the conversation should be about growth and where you want the role to grow and how do you help guide and mentor them, and what path they should be on,” says Debra. “A lot of times, the problem with people who don’t have performance conversations at all is that they don’t know what the expectations are, so there is a big gap or void, and they may not find out until it’s too late and a termination may be involved.”

Managers and leaders too busy

She recommends ongoing performance conversations can be far more effective and beneficial – especially for managers - rather than scheduling annual or even quarterly meetings.

“The No. 1 reason performance conversations are avoided is because managers and leaders are just too busy, especially if they take this on as a once-a-year project. Even half year or quarterly meetings can suddenly become a time management issue,” she says. “If you’re giving feedback on performance on a regular basis, where people are being guided and informed, it’s not a big scary thing. Even when there might be poor performance involved, you can accomplish it in ways where people are really receptive to it.”

Debra says a conversational approach can take a lot of the problematic parts out of the process for the leaders as well as the individuals, providing it’s done in a compassionate and empathetic manner.

“There should be some element of careful language and the potential for opportunities to help because sometimes you might have to provide feedback to someone who won’t have the skills set to make those changes unless you actually help put those things in place for them,” she says, adding there are tools available to help leaders who may not have the natural ability to have those difficult conversations. “I feel like conversations don’t happen as easily and as compassionately, or maybe as kind as they used to.”

Tips for business leaders to enhance their performance management practices:

Set Clear Expectations: Clearly define performance expectations for each role within the organization. This includes outlining key responsibilities, goals, and performance indicators. When expectations are transparent, employees understand what is expected of them, leading to better performance outcomes.

Regular Feedback: Provide regular and constructive feedback to employees regarding their performance. Feedback should be specific, timely, and focused on both strengths and areas for improvement. Encourage open communication and dialogue to address any concerns and provide support for development.

Goal Setting: Collaboratively set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals with employees to align individual objectives with organizational goals. Regularly review progress towards these goals and adjust as necessary to ensure they remain relevant and achievable.

Performance Reviews: Conduct periodic performance reviews to assess employee progress, provide feedback, and identify development opportunities. Performance reviews should be conducted in a supportive and objective manner, focusing on accomplishments, challenges, and future goals.

Recognition and Rewards: Recognize and reward employees for their contributions and achievements. This can take the form of monetary incentives, promotions, or simply verbal recognition. Acknowledging employee efforts boosts morale and motivation, leading to increased engagement and productivity.

Training and Development: Provide opportunities for continuous learning and growth to empower employees to reach their full potential. Development initiatives should be aligned with both individual and organizational goals.

Performance Improvement Plans: When performance falls below expectations, work collaboratively with employees to develop performance improvement plans. Clearly outline areas for improvement, set measurable goals, and provide support and resources to facilitate progress. Monitor performance closely and provide ongoing feedback and coaching throughout the improvement process.

Data-Driven Insights: Utilize data and analytics to gain insights into employee performance trends and patterns. Analyzing performance metrics can help identify areas of strength and weakness, inform decision-making, and drive continuous improvement efforts.

Employee Engagement: Foster a culture of employee engagement and empowerment by involving employees in decision-making processes, soliciting feedback, and recognizing their contributions. Engaged employees are more committed, motivated, and likely to perform at their best.

Continuous Monitoring and Adaptation: Regularly review and refine performance management strategies based on feedback, evolving business needs, and industry trends to ensure effectiveness and relevance.