Preparing for a recession? 5 things to consider

While signals are mixed regarding whether the U.S. economy will fall into a recession, many economists are in agreement that a significant downturn is likely. A recent article by Ed O’Boyle from Gallup explains how leaders must factor in the potential for a recession when developing strategic plans for the new year.

O’Boyle outlines 5 key concepts for leaders to keep in mind amid an uncertain economic environment. As a leader in the financial services industry, I found these tips not only relevant, but absolutely critical to consider:

  1. Focus on your ‘human capital strategy’. While some organizations may find that adjusting the size of their workforce to meet lower revenue demand is the only solution, others may find that the best time to look for new talent is during a recession. “While everyone else is looking at who to cut, savvy leaders are looking at who to add,” writes O’Boyle.
  2. Create a plan for communication. During a recession – or any kind of unexpected crisis – there are several tough topics that may need to be discussed. It’s important to train your managers to be better listeners and communicators so that they can appropriately and effectively keep employees in the loop. Withdrawing manager support or communication while facing uncertain times will most certainly decrease morale. It’s natural to want to pull-back, but what your team needs most is transparency.

 

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