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Keeping employees motivated for any small business is key to long-term success. It is even more imperative to keep employees motivated during an economic downturn. After all, low employee morale during an economic downturn could lead to disaster for your small business. When times are tough, companies that keep their employees engaged are more likely to succeed. Employees will be willing to put in the extra hours and effort when needed to ensure the company makes it through the slowdown.

The bottom line for any small business owner is that the employees are first, business second. This is especially important during an economic downturn. The employee will return the favor and put the business first when it gets to crunch time. If you’ve been treating your employees well, recognizing their work, praising them for everything they provide, and keeping them in a competitive salary range, you need not worry.

What if you are not in that situation? What if you’ve let things slide a little bit? What if you haven’t given your employees raises in more than a year? It doesn’t mean that your business is over, but it does mean that you have a difficult road ahead. It also means that the economic downturn is only the start of your problems. When the economy picks back up again, your employees are going to cause a significant brain drain on your business. It doesn’t have to be that way.

No matter what your situation is with employees, there are three keys to maintaining employee satisfaction during an economic downturn:

1. Real
2. Recognition, and
3. Reward

Real Leadership

Beyond anything else, small business owners need to “keep it real” with their employees during an economic downturn. Your employees aren’t stupid. You hired them didn’t you? If you don’t address the economic conditions, you aren’t a small business owner. Everyone in the business knows you. In fact, most people in the company know everyone else in the company. You are a small business. Act like one!

This doesn’t mean that you call a company meeting to talk about how depressed the economy is. Instead, formulate your vision for keeping the company strong and share it with your employees. Let them know that you are looking out for them. Without them, you have no business.

Don’t have a vision for pulling the company through? “Get real” with your key managers/employees. Again, it isn’t a time to talk about how depressed the economy is. It’s time to inquire of your key employees, “The economy is slowing down, and it is going to have an impact on our business. As a team, we can make it through this. What can we do to ensure that we take our entire company along with us?”

Allow yourself to be the leader. Leaders listen. Leaders are advised. Leaders motivate. Dictators dictate.

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