Like me do you wonder about the impact of the negative messages that abound about double-tip recession in terms of it becoming a self-fulfilling prophecy?

The fear of losing their jobs and their incomes can force individuals to compromise. Sticking with organisations that no longer fit their needs or career aspirations. Often demonstrating an unwillingness to challenge existing ideas or ways of working for fear of negatively disrupting the status quo.

Similarly for organisations, fear of what lies ahead often means a reluctance to invest and innovate. Focusing on short-term containment rather than long term growth.

Challenging times calls for considered expenditure and investment but it also calls for strong and considered leadership.

In times of growth and prosperity employees derive, security and motivation, in part, from the prevailing optimism, which exists within organisations and from society as a whole.

In difficult times uncertainty and fear of unemployment can result in a lack of focus and in some cases a drop in employee productivity as individuals struggle to stay optimistic and motivated.

Strong leadership is an important component at any time but it becomes even more critical during times of uncertainty and change.

To mitigate against the impact of "negative messages" leaders need to provide their people with the focus and encouragement to remain positive and productive. Articulating in language they can relate to, the strategy of the organisation, now and over the months ahead. They need to be clear what they need from their people in terms of commitment and what they will give in return. No organisation can promise they won’t cuts jobs but they can commit to a regular and open dialogue in which they:

 Consider ideas from employees for improvements in productivity and organisational processes

 Listen to and acknowledge employee concerns

 Give employees regular feedback on their own individual performance and that of the organisation.

Organisations need to respect and not ignore the psychological contract that exists between themselves and their employee’s. If an organisation wants its employee’s to be both motivated and productive it needs to be willing to treat them fairly both in terms of remuneration and opportunities for growth and development. Honouring the psychological contracts doesn’t mean being soft on people. In fact it means quite the opposite. Individuals need to be rewarded according to their delivery of an acceptable performance and those who don’t perform need to be managed with a view to improving performance or exiting the organisation.

The organisation that makes it successfully through the downturn will have leaders who:

1. Set a clear direction for the organisation and communicate that direction to employee’s on a regular basis. Communicating in a language they can understand and which articulates clearly "what’s in it for them."

2. Set clear performance objectives for employee’s which are directly linked to business objectives.

3. Regularly manage the performance of individuals and not just treat performance management as a one-off annual event. Providing regular constructive feedback to maximise the chances of individual’s being successful in their role.

4. Treat people fairly and deliver on their promises.

5. Take time to understand their employee’s and their individual needs and motivations. Recognising that in times of change and uncertainty every individual will embark on a different change journey.