Managing in an economic downturn is different from managing in a robust economy, but not for the reasons you may think. Don’t fall for these three myths:
Myth #1: Employees are more loyal when the economy is weak. When times are tough and jobs are scarce, employees wouldn’t dream of jumping ship, right? Wrong. If employees feel that you haven’t rewarded their past loyalty, they’ll never give their all in a downturn.
Success Tip: The most effective ways to maintain loyalty are praise and recognition. They cost nothing and are even more powerful when staffers feel threatened.
Myth #2: Employees want to hear the bitter truth. Honesty is the best policy, but bad news is still bad news – with negative effects on performance. Trying to keep employees productive during a downturn may be a manager’s greatest challenge. So, how do you do that without fudging or evading the issue?
Success Tip: Temper your bad tidings by focusing on a positive future. Explain how you and your team can turn things around. By going beyond the bad news, you give your employees a chance to get excited about the future and contribute to solutions.
Myth #3: Employees resist change. It’s not always true that workers who feel threatened will resist change. You can sell change if the new ideas you present mean the difference between working smarter, not harder.
Success Tip: Again, present the news with a focus on solutions and offer staffers a chance to innovate that may not have been there before. Example: “Jason, these layoffs mean that you’ll have to pick up some extra work. So I’m going to let you try working from home two days a week.”
Managing in a downturn is a challenge. You can make your job easier by enlisting the talent on your team to take performance to new levels. Everyone will learn, grow and benefit.
Kathleen OConnor is the owner of the OConnor Success System which provides professional growth programs for managers and entrepreneurs. To access our free resources, visit our website at http://www.OconnorSuccessSystem.com You can sign up there for your free 4-part mini-course on communication skills and a free subscription to our monthly e-zine, The Edge.
