We’re starting to see changes in the business and economic landscape impact people and companies we know, which always hits a little closer to home. During times of economic uncertainty, how you lead matters more than ever. It’s hard to strike the right balance of authenticity and transparency while strategically navigating a host of challenges your business may be facing. But your ability to do this effectively is a critical part in how well you and your team will be positioned for future success. Here are 5 tips to help you balance leadership and transparency among your team in an uncertain economy:
1. Balance Optimism & Realism
The example of being an optimist who carries a raincoat is very relevant here. When we project confidence it’s contagious. And the one thing that really impacts overall morale is hope. Sharing reasons you’re optimistic about the future of your company will carry a lot of weight with employees, but it’s important to balance this with the reality of what you’re facing and what you’re doing to address specific business or economic challenges. The combination of optimism and proactive action is a very effective and formidable leadership strategy.
2. Share Your Wins
If your company is doing really well, letting your team know that is a great way to reduce chatter and gossip about business performance. If you had a great quarter, this is something to celebrate. Even small wins are important to share. Remind your team what you do really well. Talk openly about upcoming business opportunities and new projects, product launches, and policies that are wins for the company.
3. Agree on Messaging
Preparing your leadership team to talk openly with employees and answer their questions is important – but it’s even more important that they’re all giving similar answers. Consistent messaging matters! Preparing and agreeing on how to respond to the most common questions from employees is a smart strategy and helps minimize gossip and confusion. So make sure you communicate with your leaders and managers ahead of time so you’re all on the same page about your position on key questions and concerns from employees.
4. Address Job Security
Research has shown that in times of economic uncertainty, the biggest fear employees have is losing their job. And apart from that, it’s being blindsided over the loss of their job. Wondering about this is really stressful. Be prepared to address questions about job security and have your managers encourage open dialogue around this with their team. Asking employees how you can help them feel more secure and supported is a great question. And the answer is almost always transparency. If you’re in a position where you’re not facing any immediate downsizing, simply sharing this is a quick way to shut down rumors and reduce stress for your staff. But it’s also important not to promise there won’t ever be layoffs or reductions as this could have potential legal ramifications too. Simply saying that you’ll be transparent about this if things change is often enough to reduce the stress over immediate job security.
5. Encourage Connection, Questions, & Culture Building
In any time of economic or business uncertainty, creating a sense of connection is a great way to help your team feel more secure. It’s also a great way to remind everyone the value of the work they do and the impact it brings more broadly. Devoting time to team building and culture building activities helps strengthen bonds and it also reinforces connection and engagement. Open communication is really meaningful too and helps reduce stress. But in order to communicate effectively and in a meaningful way, you need to know what questions and concerns are top of mind for everyone. A simple survey or poll that gives employees a chance to share feedback and concerns is a valuable tool in helping you prepare a communication strategy that’s effective.
Have an HR or people question? Reach out to us by phone if you want to speak to a human, or by email or webchat if you want to start a virtual conversation. We love helping growing companies thrive and we’d love to hear from you!
