The long-threatened tariff of 25% on most Canadian goods will take effect as of midnight Tuesday. On Monday, Trump said “very importantly, tomorrow, tariffs, 25 per cent on Canada and 25 per cent on Mexico, and that will start. So, they’re gonna have to have a tariff”.
Canadian businesses have been bracing for impact and the uncertainty that the tariff brings. But beyond these economic concerns, it’s employees who are feeling the pressure as organizational instability could fuel stress, disengagement, and productivity decline, making HR’s role as a stabilizing force more critical than ever.
In these uncertain times, organizations who embrace change and prioritize their people will not only weather the storm but position themselves as leaders in the evolving economy.
For HR professionals, this is a defining moment. Employees look to HR for clarity, reassurance, and stability. Without the right strategies in place, uncertainty can take a serious toll. Disengaged employees are 18% less productive, and absenteeism jumps by 37%, impacting both efficiency and costs.
The early days of the pandemic taught us a valuable lesson: uncertainty, if left unchecked, can erode workplace morale. But HR has the power to be a stabilizing force. By fostering transparent communication, reinforcing support systems, and prioritizing employee well-being, HR leaders don’t just help organizations weather economic turbulence—they build the workforce resilience needed to keep Canada strong on the world stage.
3 Ways HR Can Support Employees Through Uncertainty
1. Strengthening Communication to Reduce Anxiety
In times of uncertainty, strong communication is essential, but that doesn’t mean having all the answers. Employees crave transparency, and HR leaders play a critical role in providing reassurance, even when many details remain unknown.
Honest, frequent updates and sharing what is known, while openly acknowledging what isn’t, can help to diffuse anxiety and build trust. Employees don’t expect perfect certainty, but they do need to feel that leadership is present, engaged, and committed to guiding them through change.
Uncertainty breeds stress, which can lead to decreased productivity – but 86% of HR leaders know that increased transparency leads to greater workforce trust. By normalizing honest dialogue and reinforcing a sense of stability, HR can help employees feel more informed, valued, and prepared, regardless of what’s ahead.
2. Retraining and Redeployment: Transforming Change into Opportunity
Uncertainty often signals shifts in business priorities, but it also presents a chance to invest in employees. By focusing on reskilling and upskilling, HR can ensure employees remain valuable contributors rather than feeling displaced.
A McKinsey Global Survey highlights that organizations prioritizing skill development are better equipped to handle role disruptions. With AI and automation reshaping industries, reskilling is more important than ever; yet nearly half of employees feel they aren’t receiving adequate training. Partnering with training providers or change leadership experts can be a cost-effective way to build workforce adaptability and future-proof talent strategies.
3. Prioritizing Mental Health and Well-Being
Tariff-related uncertainties may add a layer of stress for employees, making well-being initiatives more critical. Proactively supporting mental health builds resilience and fosters a culture of adaptability, helping employees feel secure and empowered.
Investing in workplace well-being isn’t just the right thing to do, it’s also good for business. Canadian research shows that every $1 spent on long term mental health programs yields a $2.18 annual ROI. Implementing structured mental health resources, temporary support programs, or stress management workshops can make a tangible difference in employee morale and engagement.
For additional guidance, the HRPA’s Fostering Mental Health in the Workplace practice guideline provides actionable strategies to support employee well-being.
HR’s Role: Building Workforce Resilience to Strengthen Canada’s Economic Future
Uncertainty is inevitable, but disengagement doesn’t have to be. By fostering open communication, prioritizing mental well-being, and investing in workforce adaptability, HR leaders are not just mitigating short-term disruption; they are cultivating a workforce that is agile, resilient, and prepared for the demands of a rapidly evolving global economy. The time to act is now—not just to safeguard business continuity, but to empower employees and strengthen Canada’s economic future.