While spring is well known for new shoots of growth, sunshine and opportunities in abundance, an organization’s financial seasons may not be as predictable. A company can confront challenges and headwinds at any time of the year — winter, spring, summer or fall.
The trick is to be ready with a plan for reversing unpredictable downturns and lessening the struggles such as lagging sales or the aftermath stemming from a merger or acquisition, while also ensuring your employees remain motivated and hopeful during the transition.
By having an economic disaster plan in place—or at the least, being adaptable to such difficult scenarios when they erupt—your company may have a greater chance not only of retaining its good people, but also of attracting new talent, in the future.
Some strategies to consider in helping prevent or thaw out negative attitudes amid company downturns and struggles include:
1) Communicate Openly + Regularly
Rather than letting the grapevine do the talking for you, begin, from the top of leadership on down through front-line management, having conversations with the employees and teams impacted at the first prediction or indication of disruption. Do not stop there; provide regular updates and insights on what’s happening, how the company is responding and what this means for individual employees and the company as a whole.
2) Provide Opportunities for Employees to Participate in the Turnaround and/or Transition
If the company is undergoing a bleak period of declining revenues and market share decrease, then ask for the employees’ help. Create expert, creative teams for developing and testing out of the box solutions for revenue, product and profitability growth.
If the company recently acquired or merged with another organization, tap personable talent internally who can helm integration teams and/or be a bridge between the old way and the new way of operating. By getting employees involved in the solution, you can empower them to feel they have some control over their otherwise uncertain future.
3) Promote from Within
It may seem counterintuitive to consider promoting employees during a very difficult period for your company. But there are several instances where this might be just the ticket to help the company find its path back to profitability while also increasing employee motivation and retention. As most companies know, when the word gets out that business is suffering, employees begin dusting off their resume and considering their best path to jump ship.
You might be able to prevent defection by incentivizing key employees to stay. Consider that employee who may be doing the next-level job up anyway, and proffer them the appropriate title with a bit of a financial remuneration as proof behind your commitment. While the cost investment in a promotion may seem too costly during a trying time, it may actually be the most cost-effective solution.
For instance, promoting from within means that there is very little interruption to the necessary workflow that needs to be kept up to remain afloat and the promotion itself may lead to an energy reset for the employee in question, which can only be beneficial. In addition, the company also saves in the time and money that it would need to spend to both search, hire and train a new employee for the role.
4) Get Out of Your Own Way
Don’t forget the approach that led you to growth — distributing the weight of responsibility and not micromanaging when searching for the best solutions. Times of crisis are the most ideal times to bring in experts and supporting help; while the bottom line may be affected in the short-term, in the long-term this could be the differentiator in whether or not future growth (and improvement) is actually possible.
Prioritize tapping into the resources you have at hand first and when, and if, those come up short move to hiring outside consultants who can give a fresh set of solutions to the looming problem. Not to mention that outside help can be an outward sign to worried employees that this isn’t a sunken ship just yet.
5) Modernize Your Operations
Outdated systems, brick-and-mortar operations amid a rapidly digitizing industry and other less-than-forward thinking business practices may be setting the organization behind. The lack of modernization could also be leading employees to see the company, and therefore the mission you’re championing, as a lost (soon-to-be extinct) cause.
The most proactive way to move in the right direction – for both the company and its employees – is to search for greener, more contemporary pastures. This is a great growth opportunity when framed correctly. Leave the hesitancy and sense of impending doom behind by clearly and excitedly communicating with your employees that the company is moving in a modern direction and looking for collaboration to make it happen. The solution is a win-win because it will lead to both moving the company forward and encouraging employees at the same time.
6) Root Out Toxicity and Strengthen the Culture
In the same way that keeping your best talent can be a sound investment during integrations, acquisitions and even downturns; getting rid of any persistent negativity could only lead to further successes. The key is to first identify where the negativity is coming from and address it head on – this is not the time to tread around the bush because, as you’ll remind employees, there is too much on the line.
You want to make sure that, possibly in a team meeting; you address how it is essential that everyone be on the same team and deeply engaged with the company’s overall mission. Don’t be afraid to let go of those who do not seem able to jump on board with the tasks at hand; this can actually serve as another key way to give added responsibility and compensation to those who are truly stepping up for the team.
7) Don’t Be Resistant to Leading by Example
The key during more tumultuous company times is to consistently reinforce that everyone is playing for the same team and that no task is too small, regardless of your role. The best way to inspire employees to follow up on your message is to show them that you too are willing to put in long nights, pick up work that you typically would not have picked up and delegated what you usually would have done yourself for the sake of moving the company forward. Remember, above all, your employees are looking for a relatable and extremely trustworthy leader--this is your time to shine.
These tips are just a starting point of ways that you can diminish the noise during a company’s most rocky period. As added tips, make sure that you’re listening intently to the rumble your employees are producing, so that you’re both not caught off guard and able to address it before it turns into a louder clatter. While spring may be known for the beginning of spring, it is also known for the rain and storms that lead to May’s flowers — take both in stride and with intentionality above all.
