Another war has begun. Are companies prepared for the impact on people?

Geopolitics and People: Are Companies Prepared for the Organizational Impact?

✏️ By Daniela Santos, Chief Human Resources Officer at IDW

‍

In an increasingly interconnected world, the outbreak of a new armed conflict is not merely a subject for geopolitics or international relations. Its consequences rapidly cross borders and inevitably reach organizations — permeating the economy, the markets, and, most importantly, the people.

Recent history shows that wars and geopolitical tensions trigger effects far beyond the battlefield: economic instability, pressure on energy prices, and disruptions in supply chains. However, there is one factor we cannot ignore in March 2026: "anxiety inflation." Recent studies indicate that approximately 72% of employees feel that global instability directly impacts their ability to focus and their daily productivity (Source: APA 2026).

This uncertainty doesn’t stop at the office door. Our employees follow the news, feel the economic impact on their daily lives, and naturally question what the future holds. It is precisely in this context that I feel my role, and that of all Human Resources leaders, becomes more strategic than ever.

‍

The Invisible Impact of Global Instability

When we talk about war, we tend to think of the most immediate impacts: the economy, energy, and international politics. However, there is a less visible but equally relevant impact—the human impact.

Prolonged uncertainty can take a toll on motivation and psychological well-being. In Portugal, this scenario is particularly critical: 2026 data from the Order of Portuguese Psychologists (OPP) indicates that about 50% of workers are already showing signs of emotional exhaustion due to the global "polycrisis" (Source: OPP 2026). In the technology sector, where demands are constant, this burnout risk is 35% higher during periods of instability (Source: Workplace Wellbeing Index). As leaders, if we ignore this dimension, we risk underestimating a factor critical to business sustainability: the emotional state of our people.

‍

The Role of Organizations in Times of Instability

In a world marked by growing volatility, companies are increasingly called upon to play a role in social stabilization. More than ever, employees look for organizations that convey security, clarity, and purpose. In a market like Portugal, where 80% of people admit that the international climate creates a constant state of alert regarding their economic future (Source: Cetelem Barometer 2026), our role as a stabilizing force becomes vital.

At IDW, I believe this requires three fundamental pillars:

• Transparent Communication: In moments of uncertainty, organizational silence breeds speculation. We must communicate clearly about the context, challenges, and priorities of our organization.
• Empathetic Leadership: According to the World Economic Forum (2026), emotional intelligence is now the vital skill for leading through a crisis. When we demonstrate proximity and active listening, we can reduce team anxiety levels by up to 40% (Source: WEF Global Risks Report 2026).
• Resilient Organizational Cultures: I know from experience that companies with psychologically safe environments are far better equipped to face adverse external contexts (Source: The Fearless Organization).

‍

Human Resources at the Heart of Organizational Resilience

In the face of global instability, Human Resources assumes a decisive role. Beyond managing processes, our function is to ensure that companies maintain their focus on what truly sustains any organization: the people.

This involves strengthening our well-being practices, promoting internal trust, and ensuring that teams have the necessary conditions to continue performing their work with stability.

In an increasingly unpredictable world, the true competitive advantage lies not just in technology or strategy — it lies in our ability to care for and mobilize our people. Perhaps my true mission, and that of my team, is to ensure that IDW remains a place of stability, trust, and humanity.