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12 Ways to Calm Employees in an Economic Downturn

12 Ways to Calm Employees in an Economic Downturn

12 Ways to Help Lower Stress

Here are 12 ways you can decrease—or prevent—employee stress during bad (and good) economic times:

1. Adjust expectations after cutbacks

Staff reductions and budget cuts increase stress levels by overburdening the remaining workers. So today’s leaner budgets call for careful prioritizing, and smaller workforces require managing workloads prudently. Avoid assigning new projects your employees can’t adequately handle.

2. Communicate with employees

Try to keep workers abreast of what’s going on in your organization—the good news and the bad. Provide an opportunity for them to air concerns informally with their supervisors, in meetings, or perhaps in a Q&A column in a company newsletter. This can help reduce stress-inducing gossip or rumors.

3. Be straightforward

If you’re implementing a layoff, being honest with the survivors will help alleviate their fears. Saying everything is fine, when it isn’t, will undermine employees’ trust in the company.

4. Whatever you do to “right-size up”, do it only once

Whenever you bring about changes, layoffs, or cutbacks due to an economic downturn, every time something occurs it brings morale lower and stress higher. Trust gets lost and fear becomes the driving factor. Plan strategically so that everything you carry out takes place at one time. Once completed, let your employees know.

5. Reduce conflicts

Whenever you bring about changes, layoffs, or cutbacks due to an economic downturn, every time something occurs it brings morale lower and stress higher. Trust gets lost and fear becomes the driving factor. Plan strategically so that everything you carry out takes place at one time. Once completed, let your employees know.

6. Maintain employee benefits

Stress levels rise when valuable benefits such as health insurance, vacation pay, and sick leave are cut back. Weigh the savings from reducing benefits against the potentially high costs of lowered productivity and burnout.

7. Encourage vacations

Be sure workers take vacation time instead of letting it accrue indefinitely or getting paid for it. Employees who get to relax and rejuvenate away from work develop fewer stress-related ailments and are more alert and energetic on return.

8. Give employees more control

Workers who have some control over how they do their jobs take greater pride in their work, are more productive, have more self-confidence, and cope better with job stress. Allow employees to make decisions, undertake new challenges, and learn from their mistakes. Streamlining red tape—for example, giving a modest increase in spending authority without supervisor approval—can give an employee a greater sense of control over the job.

9. Recognize and reward

Bonuses, achievement awards, or public praise for a job well done can pay off in boosted productivity, loyalty, and morale.

10. Examine environmental factors

Stress can be exacerbated by environmental conditions such as crowding, noise, air pollution, or ergonomic problems. Assess your workplace and consider environmental solutions.

11. Educate workers on finances and recession-related topics

Informing employees about how to stay afloat in a recession can help them feel less anxious. Consider holding brown-bag lunch training sessions on topics such as reducing credit card debt, making a budget, investing, 401(k) distribution, and living on a retirement income.

12. Offer an Employee Assistance Program (EAP) and a Pastoral Counseling Program

If you don’t already have an EAP or pastor support program, gather a list of local resources that employees can turn to when they need help managing stress.

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