By Victor AhiumaYoung

One of the standpoints of the 45th Annual General Meeting, AGM, of Chemical and Non-Metallic Products Employers’ Federation, CANMPEF, held in Lagos recently, was a keynote address  the Managing Director of Mouka Limited, Femi Fapohunda, titled: Strategies for sustainability in Nigeria manufacturing sector.

Among other key points of the presentation was the importance of human capital or employees for the survival of business in an economic downturn. 

Though the presentation was centred on what he termed the “three Ps” of Practice (art) to ensure People, Planet (Environment) and Profit in daily business activities, but his discourse on people that focuses on the importance of employees to business survival in a challenging economy is the concern of this report.

According to Fapohunda: “Prioritising Employee Well-being and Safety In challenging economic times, it can be tempting for organisations to cut back on resources dedicated to employee well-being. However, maintaining a strong focus on health and safety is critical, particularly in manufacturing where work-related injuries can have severe impacts.

Sustainable Human Resource, HR, means prioritising a safe work environment even when budgets are tight, as this reduces potential downtime and ensures a reliable workforce.

“Re-skilling and up-skilling for adaptability during economic downturns often require organisations to operate with reduced staff or adapt to changing demands quickly. Instead of resorting to layoffs, sustainable HR practices focus on training and re-skilling existing employees. By investing in cross-training, companies can enable their workforce to handle multiple roles, creating a more flexible and resilient team that can shift with the changing needs of the business.

“Fostering Industrial Harmony Periodic engagements with the unions and other staff representatives will help to reduce tension and open the communication lines which in turn foster loyalty and a sense of belonging, during this difficult time.

“Flexible Work Arrangements to Retain Talent Downturns can place a strain on both employees and employers, and one effective HR practice is to implement flexible work arrangements. In the manufacturing sector, full remote work may not be an option for most roles, but flexible time and shift adjustments can help employees manage their personal and financial challenges. This adaptability not only helps retain valuable employees but also reduces the costs associated with turnover and recruitment. When workers feel supported in their work-life balance, they are more likely to remain engaged, even in difficult times.

“Strategic Compensation and Benefits Management Economic challenges often lead to budget cuts, and compensation can be one area impacted. However, sustainable HR practices seek to balance cost-saving measures with fair compensation. This could mean adjusting bonuses instead of salaries, offering non-monetary benefits, or introducing flexible, cost-effective benefits that provide real value to employees.

Transparent communication around these adjustments is essential. When employees understand the company’s financial challenges and feel that decisions are made with fairness, they are more likely to stay motivated and committed.

“An economic downturn adds stress to employees, which can impact mental health and well-being. Sustainable HR practices recognise the importance of supporting employees emotionally as well as physically. This support could be through offering counselling services, access to mental health resources, or regular check-ins with trained supervisors. Emotional well-being is often a predictor of overall productivity, so these efforts not only help the workforce but also reinforce the company’s resilience.

“During times of economic uncertainty, transparency becomes a cornerstone of sustainable HR practices. Clear and frequent communication on company decisions, financial status, and future strategies keeps employees informed, reducing anxiety and fostering a culture of trust. When employees understand the challenges the company is facing, they are more likely to rally around solutions, contributing ideas and energy to help the company weather the storm. Transparent communication also mitigates the spread of misinformation, which can further destabilise an already stressed workforce.

“At Mouka, we have instituted some sustainable HR practices to enhance engagement and ultimately, productivity: Regular team bonding activities to foster collaboration amongst individuals and teams, prioritise  the safety of employees by implementing and strictly enforcing health and safety policies, which will reduce injury-related costs and improve morale. Introduction of Staff Bus Service across plant locations, slowly migrating some of our pool vehicles to Compressed Natural Gas, CNG, increase meal subsidy allocation to cushion the effect of food inflation, payment of fuel subsidy allowance to cushion high cost of PMS (petrol) and hybrid work for our support staff.

Others include building capacity using behavioural, organisational and functional training needs, Mouka Academy- Internal Training faculty to ensure that learning is ongoing in Mouka, Learning Management System, Leadership Trainings at Lagos Business School, LBS, building cordial relations with Quarterly Pro-active sessions with Union/staff representatives, expose Union Executive /Staff representatives to Industrial Relations training, target zero Industrial action, team performance is monitored monthly and rewarded through incentives quarterly in some functions, constant education to enable our staff live out Mouka’s values, etc.