Being an effective leader is important when managing a business, but when times are uncertain, the importance is even higher. There has been a lot of uncertainty in recent years brought on by the pandemic, and then supply chain issues and rampant inflation. A number of factors have contributed to turbulent times for numerous businesses. While it remains to be seen what the future holds, effective leadership is key to your company weathering any storm.
As your company's leader, your employees will look to you to get them through any uncertainty. Step up and keep the following tips in mind.
1. Update Employees Frequently
When times are uncertain, employees want to stay informed. The more frequently you can update them, the more in the loop they'll feel, which can go a long way toward curbing anxiety. Updates, especially positive ones, can help employees feel more comfortable with their job security, which will also make them more productive and ready to continue fighting for the success of your business.
In addition to updating your team on positive developments, also share with them concerns and challenges that lie ahead.
2. Be Trustworthy
Trustworthiness is a key factor in leadership, and this is especially important during uncertain times when employees are likely to find a lot at stake when it comes to their job.
"In the context of extreme uncertainty, only trustworthy leaders draw out the maximum discretionary efforts of their people," says Timothy R. Clark at Harvard Business Review.* “They keep showing up and performing because they’ve gained what philosopher Russell Hardin called a 'street-level epistemology of trust': They have observed you in the trenches over time and can estimate the likelihood of future performance based on your character and competence. Your trustworthiness becomes a repository of their fears, allowing them to move forward with more confidence."
3. Listen to Your Employees
Everybody wants to feel heard. Provide employees with opportunities to provide feedback and ask questions. Listen and respond thoughtfully. Sometimes a simple, honest answer is exactly what your team needs to feel in control of their emotions. They might also be able to provide you with helpful insight into a facet of the business that you had not considered. Dialoguing with employees can help you improve efficiency, which can ultimately help your business become more resilient.
4. Be Clear
During uncertain times, employees want clarity rather than murky explanations that only add to the uncertainty.
"Thoughtful explanations in tough situations are critical to earning trust and reducing anxiety," says Liz Flosslien at MIT Sloan Management Review.** "The next time you have an update to share, prepare to walk through the story of how the decision was made, and think through any concerns or questions that might come up. Plan how you’ll address each one. If you’re unsure of what to say, ask other leaders or HR for recommendations. When you do share the decision with your team members, encourage them to ask clarifying questions."
5. Help Employees Maintain a Healthy Work-Life Balance
A healthy work-life balance is always important, but it can be especially critical to the mental health of workers during uncertain times. When things are uncertain, stress is practically inherent. A poor work-life balance will only exacerbate this. Encourage employees to set clear boundaries between work and home life, but also provide flexible working hours if possible. Encourage them to take regular breaks, and respect employees' personal time. Monitor workloads to ensure nobody is taking on too much by themselves. Promote healthy habits and provide mental health resources.
Whether your company is dealing with economic issues, industry disruptions, or the next global crisis, your employees will look to you to lead them. Be empathetic, understanding, and communicative. Also, do your best to help employees take care of themselves and keep spirits high and mental health in good standing.
* https://hbr.org/2024/02/what-employees-need-from-leaders-in-uncertain-times?ab=HP-hero-latest-text-2
** https://sloanreview.mit.edu/article/how-to-support-your-team-when-uncertainty-is-high/
