6 Steps for HR Leaders to Navigate Crises

In times of crisis, every decision matters. HR professionals are at the forefront of adopting a smart decision-making process that not only addresses immediate challenges but also lays the groundwork for long-term organizational resilience. According to SHRM and Gap International’s 2022 Organizational and Employee Resilience Report, employees who demonstrated low levels of resilience were 1.5 to 3 times more likely to have thought about quitting or exploring alternate jobs.

Without deliberate, informed actions, miscommunication, low morale, and operational missteps can compound the crisis. Conversely, thoughtful decisions foster trust and collaboration while helping pave a pathway to getting back to normal after the crisis.

The Process of Making Smart Decisions During a Crisis

Smart decision-making in a crisis is not accidental — it’s a structured blend of analysis, empathy, and flexibility. 

Here are six steps for how HR can guide the decision-making process:

1. Assess the Situation Thoroughly 
Begin by gathering comprehensive data and insights. Conduct rapid assessments to understand workforce capacity, budget constraints, and emerging challenges. Smart decisions stem from a solid foundation of reliable information.

• Good Decision: Quickly convene a data-driven review alongside qualitative feedback from employees, ensuring all emerging issues are on the table.
• Poor Decision: Rely on incomplete or outdated information, which can lead to hasty decisions that overlook critical factors.

2. Communicate Clearly and Empathetically 
Transparent, consistent communication is essential. HR should provide regular updates that are fact-based, empathetic, and actionable. This establishes trust and calms uncertainty.

• Good Decision: Issue clear, frequent updates that outline action plans, while also listening to employee concerns and adapting responses accordingly.
• Poor Decision: Offer vague or delayed communications that leave employees confused, fueling rumors and anxiety.

3. Balance Data with a Human-Centric Perspective 
While data analytics helps assess the impact of a crisis, the human element must never be sidelined. Consideration of employee well-being ensures decisions are both effective and compassionate.

• Good Decision: Use data to inform strategies — such as adjusting work arrangements or resource allocation — while also providing support services such as counseling or career transition programs when needed.
• Poor Decision: Focus exclusively on numbers and financial metrics, disregarding how decisions affect employee morale and overall well-being.

4. Engage a Cross-Functional Team 
Collaborate with departments such as finance, operations, IT, legal, and communications. This cross-functional approach ensures that decisions are comprehensive and account for every facet of the organization.

• Good Decision: Establish a well-coordinated internal group that meets regularly to align strategies and refine responses as the situation evolves.
• Poor Decision: Operate in silos where critical insights from different departments are lost, leading to disjointed and ineffective actions. 

5. Embrace Agility and Flexibility 
A crisis is dynamic; smart decision-making demands a willingness to pivot strategies as new information surfaces. Adaptability is a hallmark of resilient organizations.

• Good Decision: Continuously monitor the situation and update policies, resources, and communication plans to reflect the current reality.
• Poor Decision: Cling to rigid, outdated protocols that fail to address the evolving nature of the crisis, ultimately exacerbating the problem.

6. Conduct a Postmortem and Follow-Up

Smart decisions during a crisis do not end when the crisis subsides. A thorough postmortem is essential to learn from the experience and fortify future strategies:

• Documenting and Reflecting 
  Capture a detailed timeline of events, decisions, and their outcomes. Analyze both successful initiatives and areas for improvement.
• Evaluating Communication and Team Dynamics 
  Review the clarity and frequency of communications, the efficiency of cross-department collaboration, and the overall impact on employee morale.
• Implementing Improvements 
  Develop actionable recommendations that can update crisis management protocols, enhance training, and ensure that future responses are even more agile and empathetic.

Transforming Challenges into Opportunities

Smart decision-making in a crisis — grounded in careful analysis, clear communication, human insight, collaborative efforts, and flexibility — is the key to not only managing disruptions but also emerging from them stronger. HR professionals, when empowered to lead with these principles, can transform challenges into opportunities for organizational growth and innovation. By learning from both good decisions and poor decisions, organizations can build a foundation of resilience that will serve them well through future challenges.

Lucinda Smith is an executive coach and advisor, as well as a SHRM EN Executive Advisor. Previously, she was a senior vice president at AGCO Corporation for 15 years.