Natural disasters present a core challenge HR leaders cannot afford to ignore.

Fire drills used to be the gold standard in emergency preparedness at workplaces. Now, with globally dispersed workforces and environmental disasters growing both in frequency and magnitude, emergency preparedness has become a lot more complicated—and urgent.  

In 2024 alone, global natural disasters inflicted $417 billion in economic losses—a 15% increase from the decade average. 

These events have devastating effects on both companies and employees. 

Businesses face direct losses from property damage, long-term operational interruptions, and supply chain breakdowns. Employees can experience income loss, job insecurity, displacement, the death of family members and friends, mental health challenges, and difficulty accessing basic needs—especially considering just 41–43% of natural disaster losses are covered by insurance and 24% of Americans say they have no emergency savings at all. 

This all comes down hard on HR leaders who are forced to grapple with increased absenteeism, additional demands to monitor and address employee well-being, round-the-clock coordination with leadership—all while coping with their own personal reactions.  

HR and business leaders must prepare now by developing clear policies with built-in flexibility, prioritizing employee well-being, planning for business continuity without burnout, and keeping their remote-work capabilities in place whether or not they prioritize in-office working. 

Recent environmental events pose major challenges for companies and HR

Consider the events that have occurred in just the last 12 months: 

• Catastrophic flooding in central Texas: Torrential rains claimed at least 120 lives, displaced hundreds, and forced brave camp counselors to put their own lives in danger to attempt to save their campers. 
• California wildfires: Wildfires surrounding Los Angeles, California wreaked havoc on local properties, causing a projected $4.6 billion drop in the county’s gross domestic product this year. With an estimated total cost of $250 billion, the wildfires are among the most expensive natural disasters in U.S. history. Additionally, workers in the affected areas—everyone from Hollywood executives to local restaurant servers and tour guides—are poised to lose a combined $297 million in wages 
• Extreme heat in southern Asia: Temperatures surpassing 123 degrees Fahrenheit forced school closures in the Philippines and Myanmar. In India and Pakistan, heat blasting 40+ degrees Fahrenheit higher than normal, led to widespread power outages and overwhelmed the healthcare system where many medical staff lacked training in managing extreme heat emergencies.  
• Flooding in Europe: Floods in central Europe last summer forced factories in industrial areas of the Czech Republic and Poland to shut down temporarily as thousands of workers were displaced.  
• Hurricanes: Hurricane Helene in Florida led to a temporary loss of 50,000 jobs in the tourism industry alone, with about 40,000 jobs returning amidst recovery efforts. 

What does this mean for HR leaders today?

HR leaders carry additional burden due to increasing natural disasters

HR leaders are increasingly on the front lines when it comes to preparing for and responding to natural disasters. 

Severe weather events are affecting every corner of the globe and can result in plant shutdowns, school closures, supply chain disruptions, and worker safety concerns while spiking absenteeism and derailing functions like payroll and compliance.

When you consider all of the following that lands squarely on an HR leader’s shoulders, it’s a lot to carry:

• Serving as the go-to source and communicator of crucial safety information.
• Overseeing policy implementation organization-wide. 
• Counseling managers on employee relations, shifting employee responsibilities and workloads, employee resources and more.
• Managing their own department, including reassigning duties away from people who are unavailable. 
• Preventing overwhelm among the HR team who are each assuming heightened responsibility.
• Ensuring payroll processes continue uninterrupted. 

How HR leaders can prepare for the people impact of natural disasters

Given these realities, HR leaders must develop robust plans to address the impacts of natural disasters. 

I was reminded of how impactful severe weather can be on a business when recently speaking with Dr. Indera Rampal-Harrod, VP of HR at Universal Orlando Resort. Indera told us on Inspired Leadership that due to their location in Orlando, Florida, they can’t think about if a hurricane will hit, but when it will hit. So they have created detailed plans and thoughtful policies that all business and HR leaders can learn from. 

Indera shared that Universal Orlando Resort prepares for hurricanes with a clear Standard Operating Procedure (SOP) focused on supporting employees. This includes practices to help prevent team members from losing expected pay if they are called off work, with a commitment to reviewing and improving these plans each season. The company also values team feedback and incorporates it into their planning process. Additionally, Universal’s security team is closely connected with external officials and emergency resources to ensure strong communication, effective planning, and safety for all.

Walmart also understands their vulnerability when it comes to extreme weather and has put great effort into building contingency plans so effective that when hurricane Katrina hit the southeast in 2005, Walmart was able to respond even more quickly than the Federal Emergency Management Agency (FEMA). The global retailer activated the plan in place to protect its complex supply chain and not only preserved business productivity, but showed up for the community that needed them.  

Here are more ways HR leaders can prepare for natural disasters:

Flag the risk to senior leadership.

Preparing for and responding to a natural disaster is more than an HR issue. However, HR leaders can flex their team-building muscle by bringing the need for comprehensive, inter-departmental planning to the senior leadership agenda. Employment law firm Fisher-Phillips created this comprehensive list of FAQs and general advice for companies affected by the California wildfires, specific to the state’s laws, but offers some important topics for HR leaders anywhere to explore with Compliance, Legal, IT, Operations and Finance colleagues before a disaster hits. 

Develop clear policies with built-in flexibility.

As Indera says, having policies around pay and attendance are crucial. Clarify when employees must use sick or vacation time, or if special paid leaves apply during emergencies. At the same time, allow managers to use their discretion in enforcing attendance policies so they can prioritize employee morale and sensitivity for the surrounding community. 

Map out a contingency workflow plan for all HR functions.

When Hurricane Sandy hit the heart of New York City, it wreaked havoc on some companies. But the head of HR at a global media company Inspire HR client told me in the midst of the 24-7 response demands, she was immensely grateful that the company’s servers were located offsite, and that payroll would continue uninterrupted. Now is your chance to meet with your IT and operations teams, to ensure they understand your standard workflows and can help you come up with a Plan B. Think through how employees get paid as well as how you communicate (and how that is affected by power outages), who on your team serves as the point person for each critical function (and who could back them up if necessary) and more processes that seem routine, but could be massively disruptive if upended.  

Plan for business continuity without burnout.

As important as it is to offer flexibility and time to affected workers, you can’t afford to do so at the expense of the mental health and engagement of your other employees. So, yes, ensure cross-training on critical functions so no one person is absolutely essential, but be careful that you don’t ask managers or peers to carry on two jobs at once. Many HR leaders contact Inspire proactively, before they expect an employee to be on leave, so they can get to know ways our Experts can fill in or lead a project on an interim basis. That way, they have their key back-up already in place and have us on speed dial for when an emergency occurs. 

Maintain your remote work capabilities.

We all have a head-start with this, after being forced to embrace remote work practices in 2020. While some companies are starting to pull their entire workforce back into the office, offering the occasional work-from-home day not only boosts employee morale, but also ensures your team is ready to function away from the office should the building be inaccessible.

Prioritize employee well-being.

Recognize the toll disasters take on mental health—whether a person suffers direct losses like property damage or injury to a loved one, or they witness the devastation among their community members. Offer access to counseling, mental health days, and support services. For example, Edward Jones has a disaster relief fund set up to help associates in need and the Cheesecake Factory offers hardship grants that employees can apply for when facing a housing crisis or family emergency. It’s also crucial to acknowledge that school closures and home disruptions will affect productivity, and employees may require extra flexibility in scheduling and expectations in this time. 

Natural disasters are no longer rare and they present a considerable risk for business and HR leaders. The companies that survive—while maintaining employee trust and engagement—are the ones whose leaders plan ahead, support their people and build the flexibility needed to weather any storm.