ANTenna Blog -- Business & E-Business

People are the most valuable asset of your business. During tough economic times, business owners can't afford to lose this asset or let it wither as rumors fly about layoffs and RIFs. These 5 tips will help you talk to your valuable employees and keep them focused.

Smart business owners communicate with employees and it's even more important when times are tough because morale can sag, innovation can wane, and productivity can lag. Anita Campbell of Small Business Trends offers these 5 tips for business owners about how to talk with employees in this economic climate:

1. Don't keep your employees them in the dark -- In the absence of information, employees will make up their own. In smaller businesses, employees are much closer to what's going on in the business. They will know if sales are slowing because they are dealing with orders each day. There are fewer departments and layers of management to obscure the company's real condition. No news will not be interpreted as good news. Leadership is crucial during tough times. Leading means that you need to be out in front.
2. Allow for back and forth communication -- Letting employees talk and ask questions will make them feel better. They will feel part of the decision process. They will know you are listening. Just hearing their questions will tell you a lot about what your people are thinking. You may be able to quickly dispel false rumors, and reassure them. And you can come back and give updates that try to address their concerns in subsequent meetings.
3. Convey confidence -- If you are in a panic, that will be magnified in your employees 10 times over. The best way to deal with your own emotions is to know what you plan to say in advance. Practice it if necessary. Take a deep breath and put your game face on before you meet with your people. You'll feel calmer and more confident -- and you will convey that. Your behavior goes a long way to how you feel, and how you feel goes a long way toward how your people will feel.
4. Encourage your people to share ideas and solutions -- Involve your people in coming up with solutions to cut costs or increase sales. Ask them if they have ideas, to share them and that you will consider each idea. They may be closer to things and have more creative ideas than you do. Plus, they will feel like they are taking action, instead of feeling helpless.
5. Be a good fiscal role model yourself -- Double standards destroy your credibility. When you share bad news and try to reassure people, they're likely not to believe you unless they feel you have skin in the game. If you ask people to take pay cuts or add duties or cut back on benefits, start with yourself.

Anita augments each of these points with personal anecdotes in her post on the American Express OPEN Forum.

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