Becoming Irresistible: Now Is The Time
This week we launch our Irresistible Conference at the same time the stock market has plunged, interest and mortgage rates are rising, and economists are worried about a recession. It reminds me of our first Impact conference in 2008, which we launched the month the financial meltdown began.
Whether the economy goes down or up, we know there’s economic uncertainty ahead. Inflation in the developed economies is now at 6.2%, US food prices rose by 10.8% last month, and the International Monetary Fund expects global GDP growth to drop by half. China’s economy is now growing slower than the US and the IMF projects US economic growth will drop from 5.7% in 2021 to 3.7% this year and 2.1% in 2023.
What does all this mean? As Larry Summers pointed out today, we’ve never had inflation over 4% and unemployment below 4% at the same time. In other words, the labor market is really under stress. It’s hard to hire, employers are piling on benefits, and wages keep going up. Yet at the same time, employers need to hire and jobs continue to be created.
Why is there job growth during this slowdown? Because demand for new services, new products, and new industries has skyrocketed. Not only are people excited to travel and have fun, we’re witnessing the reinvention of every industry. Banks are becoming fintech companies; retailers are becoming healthcare providers; telcos are becoming IT services and media companies; and energy companies and auto manufacturers are becoming electrified. (Read our GWI overview for more.)
This is a unique time. We’re entering a period of inflation, a possible recession, and industry reinvention all at once. It’s hard to see where it all goes. But there’s one thing I can tell you. Being an Irresistible company is the best strategy of all.
As I’ll be talking about at our conference, the #1 strategy for success is to really take care of your employees. And this doesn’t mean just give them good pay and benefits. It means carefully selecting the right people, giving them the agency to be productive and grow, and listening to everything they say.
As I often tell our clients, employees are your #1 stakeholders. Customers can buy other products. Investors can simply sell your shares. But employees, they’ve voted with their livelihood to join your companies. They are the most vested in your success. So when they tell you something should change, you have to listen to them.
This, in a sense, is why Amazon, Apple, Starbucks, and other great companies face labor unions. They’re not listening to their employees. And I can tell you from experience, if you sacrifice your employees on behalf of your customers you will be sorry. Look at the backlash from Twitter and Tesla employees when Elon Musk ignores their interests. They care about the company more than anyone, so they often take action when they’re ignored. (More on Tesla’s issues here.)
This is what my new book is all about, and this is the theme of our conference.
There’s much more to come on this topic. For those of you coming to Los Angeles this week, you’re going to hear all about it. For everyone else, please follow us (#irresistible2022) and watch for more. It’s a confusing time for many, but to me the mandate is clear. Take care of your people, and they will take care of you.
Happy Spring!
Additional Resources
Irresistible. The Global Conference For HR Leaders And Their Teams
