Hurricanes Helene and Milton demonstrate why employers need to have natural disaster plans

Shortly after the devastation of Hurricane Helene—which killed hundreds of people across the Southeast—Florida residents are now reeling from the impact of yet another deadly storm. Millions are still without power after Hurricane Milton made landfall this week, and at least 16 people have died with many more still missing.

As hurricanes and other natural disasters increase in frequency and intensity, they are also causing significant economic distress. Between 1980 and 2023, natural disasters have cost the U.S. economy about $2.6 trillion, according to the National Oceanic and Atmospheric Administration (NOAA). In 2023 alone, there were 28 climate disasters with billion-dollar consequences. And now, Hurricane Helene has reportedly caused $34 billion worth of damage while Milton could add billions more to that figure.

These weather events have a notable impact on workers’ personal and professional lives, obviously. Some economists have said Hurricane Helene could lead businesses to cut 40,000 to 50,000 jobs in October. Other estimates suggest that up to 100,000 jobs could be compromised. Indeed, unemployment claims have already increased, in part due to recent disasters.

And perhaps most importantly, when employers and employees are not prepared for a natural disaster, lives are on the line: In Tennessee, workers at a plastics factory were expected to show up during Hurricane Helene. Witnesses say that workers were trapped as the facility and nearby area flooded; at least three workers have been found dead and others are still missing. (The company in question, Impact Plastics, is currently under investigation by state authorities and has denied wrongdoing.)

It is vitally important for employers to preemptively prepare for natural disasters—especially as they become more commonplace, says Bruce Tracey, a professor of human resource management at Cornell University. Corporations, he says, are “members of communities too. They have a vested stake in how they’re affected by natural disasters [and] the economy.”

In Tracey’s experience, many companies do have some kind of response plan in place for natural disasters. But where there’s often a disconnect is how those plans are conveyed to workers, according to Tracey. “A lot of it is communicating with employees about: Look, heads up, there are going to be situations that are beyond our control that may force us to close our business,” he says. “In which case, let us tell you how we’re going to do our business.”

Beyond this high-level communication, it’s important for employers to share local resources. And companies can also reassure employees by promising to help them access emergency services in the aftermath of a disaster. Tracey has found that some companies go a step further and set aside emergency funds for employees to buy groceries and other essentials.

Employers’ emergency response plans should also be dynamic and evolve as needed over time. For instance, Tracey points out that many companies adjusted their emergency response protocols during the COVID-19 pandemic. But as the pandemic illustrated, every industry is different—and a solution that works for one organization, such as a company in which teams can work remotely, may not be feasible for another. Regardless, all leaders should make sure their organizations are prepared for weather events by preemptively and clearly sharing necessary information.

“Firms can have a lot of these great plans in place, but I find that unless you have very routinized means for making sure people are aware, it’s not always top of mind—and that’s where you get not the greatest response in the world,” he says. “If [a plan] is buried in a handbook somewhere, it’s probably not going to have any real utility.”

Employers have an even greater responsibility to prepare for emergencies when their facilities or offices are in areas that are especially prone to natural disasters, Tracey argues. “When you’re in communities, you’re part of that ecosystem,” he says. In some cases, that could mean thinking twice about building manufacturing sites in low-lying areas, for example. But as evidenced by the recent storms, even supposed “climate havens” are no longer spared the effects of natural disasters—which means all employers need to be on the alert, regardless of where they are based.

“I fear for those organizations that are not aware,” Tracey says. “There’s a lot of evidence that we need to take a lot more precautions and understand risk much more effectively than many organizations do right now.”