How leaders can support employees through the government shutdown

• What's at Stake: Widespread furloughs could disrupt benefits administration and operational continuity across public-sector contractors.
• Expert Quote: "Leaders should provide clarity, compassion and contingency planning," warns Jennifer Schielke.
• Forward Look: Prepare liquidity strategies and curated resource libraries for recurrent federal funding disruptions.
• Source: Bullets generated by AI with editorial review

With the government shutdown well underway, it's up to HR and benefits leaders to steer the workforce through uncertainty.

After failing to agree on budgetary issues at the end of September, many government services were temporarily suspended effective Oct. 1, affecting up to 40% of the federal workforce, which is around 750,000 people. Although the organizations employing those workers can do very little to prevent the repercussions of what's happening at the federal and legislative level, there are still ways in which they can assuage some concerns and provide temporary solutions. 

"In an already heightened environment of distrust and uncertainty, people impacted directly or indirectly by this government shutdown may experience a sense of security, progress and trust being shaken," says Jennifer Schielke, CEO and co-founder of career insights company Summit Group Solutions.

Read more: How the government shutdown will impact jobs, Social Security and healthcare

The biggest challenge employees could face during the government shutdown is the threat of getting furloughed should their roles not be considered "excepted." Exempted federal workers who are considered critical or whose positions are funded through unaffected departments will still be expected to continue on with their duties, but without pay. However, many of their core benefits, such as Social Security, Medicare, veterans' services and PTO, will continue on uninterrupted, along with Federal employee health and life insurance plans. 

But even though employees may still receive their benefits during this time, the shutdown will have an administrative impact, according to Schielke, potentially resulting in delays around benefit enrollments, election or adjustments, as well as delays in processing benefits, claims or reimbursements. 

"The shutdown will cause a slowdown and domino effect through every process," Schielke says. "We, as leaders and employers, have the opportunity to step up during times like these and offer clarity, compassion and contingency planning." 

Read more: 3 strategies to manage healthcare cost increases in your benefit plans

Provide support wherever possible

Thorough and transparent communication throughout the government shutdown is the most effective strategy for keeping employees productive and engaged, Schielke says. She encourages leaders to inform their teams about the situation at hand as honestly as they can and its potential impact to them, their families and their jobs, before directing them toward the right external resources for assistance, like government websites, benefit consultants, credit unions or community care services. Internally, Employee Assistance Programs can also be a powerful tool for employees who may need financial planning or counseling. Additionally, leaders can also turn to their own budgets for other ways to assist employees. 

"If you are a company with the means for financial giving or any other material support, don't wait for a campaign — donate and serve the community now," Schielke says. "Communicate and exercise generosity toward the frustrations that your people may experience." 

While there's no exact timeline for when the shutdown will end, the work shouldn't stop there, Schielke says. Companies should continually stay informed on current events and potential headwinds on the horizon so they can better prepare and mitigate any potential risk coming their way. 

Read more: 4 Social Security mistakes that hurt retirement benefits

Schielke suggests leaders take the time after a government shutdown to build cash reserves, and strengthen their relationships with lenders, partners, contractors and advisers and, most importantly, build an information library of regulations, procedures, important resources and contacts. Being proactive in the present could make all the difference should there be another shutdown in the future. 

"You don't need to know all the answers," Schielke says. "But you do need to know where to go to get the right information and key people around you to help you lead well during a crisis."