How to be a Good Business Leader in a Challenging Economy
When you decide to start a business, you understand that things won’t always be favorable. There are instances when the economy gets tough and it adversely affects your company. If you feel worried about it, imagine how your employees feel. They might worry about losing their jobs. They also have difficulty making ends meet. Here’s how you can be a good business leader when the economy isn’t doing very well.
Make sure you pay your employees on time
Sure, your business isn’t doing as well as you would have wanted it to be. However, it doesn’t mean you will let your employees suffer. They still deserve to receive their paycheck on time. They need that amount and they also have bills to pay. When delayed, it could affect their budget. Imagine yourself being a regular employee relying on this salary. You can’t afford to experience payment delays.
Don’t lay off your employees as the first resort
You can’t always opt for laying your employees off as the first strategy when you think your business is in terrible shape. Sure, it helps you keep the business afloat, but you’re also playing with these people’s lives. The economy is already bad. Many companies aren’t hiring either. You can’t let your employees go and hope things will turn around for them. Find ways to maximize their employment. You may also look for strategies to boost your customers. Besides, it’s only temporary. The economy will eventually turn around and your business will start picking up.
Consider what happened during the pandemic. At its height, several companies closed. However, the ones that decided to stay managed to survive. When things started to get better, businesses picked up quickly. Even the airline industry that was hardly hit had overwhelming demands when travel became more accessible. It’s not yet over for your business and it makes no sense to let go of your employees.
Be patient
The people working with you might also go through a lot outside work. Again, a challenging economy impacts people at the bottom more than the ones on top. They also don’t have enough financial cushion to protect them from the worsening economic state. If they can’t perform their job as well as you hoped, be patient. Give them a chance. Talk to them privately and find ways to help.
Extend support
You might start losing money to keep your business afloat. You also start getting loans to keep the ball rolling. Even when you’re already down, you should still extend help to employees who might need it. During the pandemic, many employees got sick and didn’t have sufficient insurance to pay for the medical bills. Others couldn’t afford the rising cost of goods and services. Extend your support financially or otherwise.
Your leadership will be tested during this time. You can either come out as a more compassionate and empathetic leader or you can be motivated only by financial gains. Choose the right path.
Photo Attribution:
1st and featured image from https://www.mypocketcoachapp.com/wp-content/uploads/2020/03/23-1.jpg
2nd image from https://www.forbes.com/sites/mikekappel/2018/11/26/how-to-pay-employees-the-right-way-because-you-cant-afford-to-pay-them-the-wrong-way/?sh=5ba7b85a6bcd
