7 Things HR Needs to Say to Managers in an Economic Downturn

In an economic downturn, it’s the managers who will make or break a company. Yet, too often we do manager workarounds because “Our managers aren’t up to it,” or “Our managers are not that sophisticated.” STOP. Full stop.

One of our key jobs in HR is to help managers do what they need to do to keep the organizational machine running. Here are 7 things HR needs to say to managers in an economic downturn:

  1. This whole things rests on your shoulders. Step up or step out.
  2. It’s easy to be a manager when times are great. But these are the times they try mens’ souls. You should know the difference.
  3. We’re all in this together. If you’re saying anything different to your employees, that’s treason.
  4. Our pay plans were designed to recognize there are good times and bad times. Don’t think that just because we’re in a downturn that we’re going to change them on a whim.
  5. You need to pay more attention to your high performers. And that means knowing who they are, what motivates them, and how much they contribute to the company’s success.
  6. Don’t clam up. Sure, we’re all a bit edgy, but this is no time for the silent treatment. Talk. Tell people what you know, what you don’t know, and when you’ll know more.
  7. The mangers who do this best while times are tough are the managers who will have significant careers as senior leadership. We value results and the Peter Principle doesn’t work here.

Comments

3 Responses to “7 Things HR Needs to Say to Managers in an Economic Downturn”

  1. rick on May 14th, 2008 7:03 pm

    Step up or step out. Your tone has gotten feisty in your posts about what to do in the downturn. It is not that I disagree that people need to step it up when times are bad. Through the three downturns that I experienced, a crack the whip approach does little more than to freeze people who are already nervous.

    One thing HR needs to do with managers is to give them the historical perspective that downturns do not last forever and the tools for them to communicate this to their employees. Then focus on what things can be done to improve short term results as well as what can be done now so that when the broad economics turn back up, they and the company will be set to prosper.

    Also, managers need to know what approaches that work for them in good times may not in tough times.

    As for paying attention to the high performers, I have lived with leaders who change their opinions of people in tough times. there are people who outperform in the good times and underperform in the bad. We should be helping those tarnished stars learn how to succeed in the tough times because once we let them go we may not be able to get them back later. They will be working for our competitors.

  2. HR World » Blog Archive » Wednesday Links: Marketing to Blogs, Managing in Tough Economic Times on May 15th, 2008 5:26 am

    [...] HR managers need to say to other managers in times of economic crisis (like now!). Check out it here. He’s made some fantastic points in [...]

  3. Frank Roche on May 15th, 2008 12:24 pm

    Ah, Rick, the writing is better when it’s more definitive. I go with that, but talk to me in person and there are more shades of gray.

    Great point about criteria changing. And about coaching performers in tough times. Lots to consider there…thanks.

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