How to Lead Your Team in Economic Uncertainty

I don't have the expertise to talk about cash flow management. What I can talk about is what to do with your team from a leadership perspective.

During the pandemic, I told our clients that the decisions they made with their employees then would shape the next two years. The same is true of any uncertain stretch. Here are four ways to lead your team through one.

1. Communicate More Than Feels Natural

This is exactly when you should communicate more than normal as the CEO or business leader.

If everything is fine at your company, let your team know you are not going out of business. If you need to tighten budgets, tell them that. Do not let them learn through the grapevine what is happening.

Be direct, share your KPIs, and let them hear from you often.

2. Address Job Security Head-On

If you are not planning layoffs, say so as soon as you can.

A looming, unspoken threat is what sends good people looking elsewhere. Simply telling your team that layoffs aren't on the table — if that's true — reassures people and lets them be productive without that question running in the background.

3. Show Empathy

The news is negative out there. My recommendation is just to acknowledge it.

Tell your team you know the headlines are rough and the markets are concerning. Naming the thing everyone is already thinking about is oddly reassuring.

4. Be Large and In Charge

Employees want to see a leader worth following. They want someone with a vision and a plan, who isn't easily rattled by what's coming. They want to feel secure, and to know the CEO has hold of the ship.

We don't always have all the answers. But when we are in front of our team, it's time to be confident and lead.

Two Strategies Worth Considering

It's a great time to hire. If your company sees no signs of slowing down, an uncertain market can be one of the best windows to find great talent you'd otherwise never get in front of.

Prepare for the worse case anyway. If you need to, work out a plan with your leadership team for which positions would be eliminated if things deteriorate. We learned in 2008 that you don't want to wait too long on those decisions. Having a list ready — including your lowest performers — is a genuine help if it ever comes to that.

Want to think through how to lead your specific team through an uncertain stretch? Grab a free 30-minute session with one of our HR experts.