Managing In The New Economy

1. Self-Check.  You're probably feeling the same emotions as your employees - concern, anxiety, confusion, anger, frustration, etc.  Examine your feelings and thoughts about how you are impacted by the economic changes.  Explore your retirement plans, career options, business strategy, even the ongoing viability of your company.  How you view the changes and current business climate will influence how your employees hear you and view you as a manager.  Be clear about your reactions so that you don't add or increase anxiety in the workplace.
2. Communicate.  People are looking for information about the company, their jobs, and what may be changing.  They want to understand the impact of the new economy on their jobs and job security.  Be clear and candid.  Tell people about changes that will impact them personally as soon as you can.  Tell them the truth; if you don't know the answer, say so.  Don't avoid employees because you can't answer every question they have.
3. Motivate.  Motivating people during tough times is very important.  In challenging economic times, rewards such as salary increases and benefits may be limited, but rewards that generate positive emotions are still available and motivating.  Acknowledging and recognizing accomplishments enhances motivation.  Your employees appreciate it when you notice the work they do and their contributions to the organization.  It doesn't have to formal or costly - stop by and say thanks, send an email acknowledgement, mention an accomplishment at a team meeting, tell your boss about something one of your employees did to meet a critical deadline.  These may seem minimal but each demonstrates your appreciation and will motivate people to work for you and the organization.  Get to know each of your employees so you can understand what is a motivator for each person and make every conversation specific and personal.  And where possible, consider offering your employees new challenges or projects, job rotations or the opportunity to train and mentor others.  Telecommuting, professional development, flexible schedules and sabbaticals are other motivational options to consider.
4. Engagement. The number one reason why employees leave their job is because of a poor relationship with their boss.  Engagement is developed through communication, motivation and ongoing coaching and development.  Find ways to stay connected to your employees.  Understand their issues - you might consider using an employee survey to stay in touch with employee attitudes, but you will need to act on information from the survey.  Employees like to be asked their thoughts but expect to see action and results from their responses and comments.
5. Coaching and Development.  In uncertain times, employees feel unsure in their positions and want feedback about their performance based on your expectations.  You want to ensure that work performance meets stated expectations and provides your employees with opportunities for personal and professional growth.  People want to contribute to solutions and to do a good job.  Support their efforts to learn new skills and competencies, and hold people accountable for performance.  As a manager, now is the time to use your coaching skills to help your employees achieve and sustain top performance in ways that are linked to the organization's needs and measurable business results. 

Good, effective managers will step up their efforts to connect with employees through clear, ongoing communication to motivate, engage and continue to coach and develop their talents.