Job losses, a surge in unemployment, and rising inflation are just some of the warning signs of an impending recession. Going through a recession is tough as it is for businesses, but motivating employees during recession is an even bigger challenge.
With a shrinking cash flow and the looming threat of downsizing the workforce, it can be even more difficult to motivate employees to give their best.
Layoffs, fewer financial incentives, less hiring, and uncertainty about the future could also have a profound effect on employee morale. Add to that their personal worries like financial uncertainty, lower savings, rising costs, etc. and you have a tough job at hand. This can cause your employees to be distracted and less engaged at work.
In times of economic downturn, it becomes even more important for companies to have experienced and enthusiastic staff committed to making the business a success. Managers, being their immediate leaders, have to work harder to keep employees focused and motivated.
So, how do you go about it?
Here are 7 effective techniques to keep employees’ morale up during a recession.
According to a survey, 78% of American workers are worried about job security in the event of a recession. Here are some surprising stats.
Image Source: Insight Global
Insecurity can creep in easily during a recession. How do you keep your employees engaged and motivated?
Start with effective employee communication using the right collaboration tools such as Salck. Clear and effective communication creates transparency, which builds trust. Trust makes your team members feel empowered and, therefore, increases job satisfaction. Such communication also builds trust in them.
Keeping your employees in the loop during a recession is key to keeping them motivated.
Empowering your employees with increased authority can boost their self-assurance and, in turn, cultivate a feeling of security. When contemplating innovative ways to acknowledge their contributions, you could also consider the potential of utilizing high-quality awards and plaques.
When you give your employees the power to make decisions during challenging times, you show that you trust them. This can go a long way in reducing insecurities because it makes them feel that the organization believes in their capabilities.
Trust and clarity are two important factors that can create a positive employee experience.
If you want to increase engagement and motivate employees during a recession, you must provide them with learning opportunities.
According to a study, 71% of US workers reported an increase in job satisfaction when provided with training and development opportunities.
The stats below clearly indicate that employees value training opportunities. Employee development strategy creates a good working environment in the organization.
Image Source: SHRM
Besides creating more engagement during a recession, learning opportunities also lead to lower absenteeism, increased productivity, and higher innovation.
Helping your employees learn new skills will allow managers to delegate more responsibilities to them and help them grow professionally.
Do you work with remote teams?
Providing learning opportunities for them is also necessary to keep your remote workforce happy and motivated during a recession.
You may use online course platforms such as Thinkific and Teachable to create training modules for your remote teams.
To start, try creating some simple training modules. For instance, if your business is into market research, you may create a training module on the types of conjoint analysis.
Similarly, digital marketing businesses may create a refresher course on referral marketing, blogging trends, or similar topics.
Is money the only way to motivate employees during a recession? Not really. Non-monetary rewards also work amazingly well to encourage employees.
Something as simple as acknowledging them and their contribution publically can really boost their morale. When employees feel appreciated, they are likely to be more motivated and productive. Implementing innovative perks like meal deliveries at work can lighten their load during tough times. A service such as a family friendly dinner delivery service provides ease and comfort, allowing them to focus their energy on work instead of meal prep—especially those managing family responsibilities. This acknowledgment of their personal life by meeting both professional and domestic demands can truly nurture a balanced workplace atmosphere.
Implementing an Employee Reward and Recognition Program during a recession is a good idea to make your employees feel appreciated and keep them motivated.
Here’s how an Employee Recognition Program can help your business.
Image Source: HiFives
As you can see, non-monetary recognition can be an excellent motivation tool to enhance employee engagement and loyalty.
If your team operates remotely, you can perhaps ask a few of your employees to record short videos about an employee. You can then merge the videos and share the combined one with the respective employee. It can go a long way in boosting their morale.
Other non-monetary rewards that can help you motivate employees during a recession are as follows:
According to a survey, 86% of employees do not feel heard at their workplace. Feeling heard is a critical part of any successful professional relationship. Make your employees feel valued by listening and responding to their concerns.
Recession may throw unexpected challenges at your business. Encourage your employees to come up with solutions to these problems. When employees feel that their suggestions are highly valued, they feel appreciated and important to the organization.
By encouraging your employees to suggest a way out, you can not only find some out-of-the-way solutions but make your employees feel valued.
One of the most effective ways to help your employees work together and contribute to finding solutions to problems within your organization is by planning a Kaizen Event. These are a 1-5 day workshop that starts with identifying a specific problem and brainstorming a way to solve it.
Other ways to make your employees feel valued at work include:
Image Source: Pinterest
Demands of the job and the work environment are significant sources of stress for many American employees. Even with the best of intentions, your company may be hurting employees’ health and wellness with the way your work is organized.
Caring about employees’ mental and physical health can greatly motivate them during a recession, and even when there isn’t one.
Here are some work practices you can adopt to benefit your employees’ health and wellness and the organization at the same time.
The image below shows a few employee wellness initiatives you can adopt during a recession.
Image Source: BetterUp
The purpose of feedback is to help an individual make improvements or corrections. This is essential because it enhances both personal and professional growth.
Constructive feedback is one of the best things a manager can give an employee. When it is done right, it can reinforce positive behavior, correct negative performance, and build a strong company culture in your organization.
All of these can work wonders to motivate employees during a recession. The key is to ensure that your tone is right while giving feedback—it should be motivational.
However, the best feedback is a two-way conversation. As an employer, it is extremely important that you listen to your employees' feedback. Sometimes, it helps to use anonymous surveys, especially if it helps employees feel secure when sharing their views.
Even if making immediate changes is not possible, making your employees feel heard will boost employee engagement and job satisfaction.
Here are a few reasons why listening to employee feedback is important.
Image Source: BetterUp
Team building activities help to build a stronger unit of employees. They can improve productivity, enhance employee motivation, encourage collaboration, and build respect and trust among employees.
To motivate employees during a recession, leaders should come up with innovative ideas to encourage team bonding and trust in a hybrid work culture.
Here are some best practices for team-building activities.
Image Source: Springworks
Recession brings about economic instability that can have an adverse impact on individuals and businesses alike. That’s why it’s extremely important to keep employees motivated during a recession.
The tips shared above will help you keep employee morale high during a recession. So, go ahead and implement these tactics to keep your business afloat during the next economic downturn.
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