Just hearing the word ‘recession’ creates panic inside the walls of many organizations. The word has been buzzing around for the past several months and the anticipation for the new year is not unwarranted, especially considering the past three years. Being an effective leader and having strong leadership is vital.
Leadership, in its most basic and practical form, will always be about leading people to their full potential. It is not contingent on the easiest outcomes and the best leaders are the ones that are able to navigate adversarial circumstances.
Unfortunately, many companies are still recovering from the pandemic, so the frigid horizon is sending many in a tailspin. The world has become an unpredictable place, but here are some ways to have effective leadership in today’s ever-changing economy:
The bottom line isn’t the only thing that matters
When the economy underperforms, leaders frequently make the mistake of focusing exclusively on the short term — stats, figures, and the bottom line, usually at the expense of people. People get laid off, even premeditatedly before the downturn occurs. The bottom line is important and will always be a deciding factor in onboarding and retaining talent. However, it’s always a mistake to not consider the future beyond immediate circumstances. Your reputation and trustworthiness will be impacted. As we saw with the pandemic, hiring managers struggled to navigate talent shortages with many companies still understaffed.
Great leaders know how to strike a balance between focusing on numbers and staying engaged with their team. They play the short game and the long game.
Creating hiring strategies for tomorrow
Literally, just a couple of months ago, we were talking about the “great resignation” and the talent shortages impacting every industry under the sun. Now everyone is talking about hiring freezes and the lack of new positions. Where is the truth?
Right now, there is a lot of changes being made on the hiring side of things. There have been overcorrections in job openings due to the mass layoffs and the immediate need for talent post-lockdowns. Hiring good talent will always be necessary for businesses to thrive. However, the key is to take a targeted approach. There are many critical roles that, with the right talent, will increase your business revenue in 2023.
Ultimately top talent is and will always be in high demand. The challenge for organizations is to place the best people in the right roles in ways that are advantageous. Hiring without strategy is a recipe for disaster, so make sure that you have the right recruitment team to build the roadmap.
Don’t stop investing in your team
Regardless of the circumstances happening in the outside world, people want to feel engaged with their workplace. Going into survival mode is hard for leadership and the teams underneath. Invite feedback, always say thank you and celebrate every victory that comes along.
An effective leader also knows to set development goals with success. It’s also a good idea to hold one-on-one discussions about what motivates the team in order to create a continual dialogue.