Being a good leader is challenging on the best days, but the difficulty increases significantly during a bad economy. Currently, fears of an upcoming recession are weighing heavy on most managers, as well as the members of their teams. As a result, it’s critical to adjust your leadership style to the conditions, ensuring that everything is running smoothly regardless of how the economy shifts. Fortunately, some simple changes can work incredibly well.
Here are some tips on how to be a good leader in a bad economy:
Demonstrate Compassion and Understanding
When a recession is looming, most employees aren’t explicitly concerned about the economy. Instead, their main focus is personal and career security, primarily since layoffs and similar events can occur during a recession.
While a manager’s job is to ensure the needs of the company are met, asking employees to prioritize the company’s well-being when they’re worried about their own isn’t going to make a positive impact. Instead, demonstrate compassion and understanding when it comes to their concerns, and show how taking specific actions at work can provide them with personal and career security. By making that connection, you can demonstrate how diligence and dedication aren’t just good for the company; they’re great for them, too.
Prioritize Transparency
Many companies struggle during recessions and the economic conditions that lead up to them. While employers believe that not sharing every detail with employees is the better choice, not being open typically backfires. Employees are generally astute, so they’ll see the signs of developing problems. By not being clear about what’s occurring, workers will notice that management is keeping them in the dark, and that breeds distrust.
Instead, be as transparent as possible about what’s happening. Let employees know about revenue changes and what that can mean. Then, discuss how their actions can help overcome the related challenges. By doing so, you’re telling them how they can help prevent layoffs by supporting the company’s shifting priorities, increasing the odds that they’ll rally to your side.
Spend Time Boosting Morale
During challenging times at work, it’s critical that managers spend time boosting morale. Create an atmosphere of gratitude by outwardly recognizing the hard work of your team, both when it comes to managing their duties effectively and if they go above and beyond.
Additionally, welcome feedback or suggestions at all times. Along with leading to conversations that could help alleviate employees’ concerns, you may hear an idea that can help the company stay on track with greater ease.
Finally, don’t avoid hiring if your team is getting overburdened. Being overtasked increases stress, and it can make burnout more common. By bringing new permanent hires or temporary workers on board to reduce workloads, you ensure that everyone feels that their responsibilities are manageable, and that keeps morale high.
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