Donald Thompson: Help your team focus amid economic uncertainty

Over the last few weeks, I’ve had several conversations that highlight a worrying trend. Whether I’m talking with other CEOs, senior leaders or colleagues, they’re saying the same thing. People’s stress and anxiety are off the charts right now, and it’s taking a toll in the workplace.  

My observations are supported by several recent reports. U.S. consumer confidence fell to an eight-month low in February, according to the latest Conference Board survey, a drop fueled by concerns about higher prices and layoffs of federal government workers. Lackluster retail sales also reflect consumer worries and financial anxiety. But people aren’t just worried about their pocketbooks. The drama and unpredictability from the federal government simply has people feeling off balance and overwhelmed.

And all that uncertainty has tangible business implications, causing employees to be nervous, disengaged and less productive. Even if employees aren’t feeling the immediate effects, they worry about what may happen.

It is like a traffic slowdown. How many times have you been sitting in bumper-to-bumper traffic because all the drivers ahead of you are looking at an accident on the other side of the highway. Their path is clear, but they become distracted and cause problems for everyone else behind them. The same thing happens in our workplaces—people are impacted by external events, even when they’re not directly involved.

As Andrea Bonior, a Georgetown University psychology professor, tells Axios, "A sense of not knowing what's coming and not being able to control what's coming is really hard on the stress response. As humans, we don't love uncertainty. It's something that we don't tend to tolerate well. And then when we're anxious, it's excruciating."

That stress is exactly what employees are feeling right now, yet as a leader it is your responsibility to navigate the uncertainty and keep winning. It's up to you to help your team minimize distractions, focus on what can be accomplished today and keep moving forward.

Empathy and clarity help employees focus and thrive

Leaders who ignore the emotional undercurrents can damage their company culture, making employees feel like no one understands or cares. But when leaders act with empathy, people are more resilient and engaged, enabling them to persevere through challenges. According to a Catalyst survey, employees with empathetic leaders are more than twice as likely to be highly engaged at work: 76% versus 32% of people with less empathetic leaders.

Acknowledging the situation is the first step, but empathetic leaders must act in meaningful ways to help employees balance their emotions and still accomplish their job obligations. In fact, the predictability of work tasks can often provide stability and give people a sense of purpose.

Here are five ways that leaders can help employees navigate uncertainty:

1.      Focus on top priorities. Make sure you’re telling your team members which two or three initiatives they should be prioritizing to make the biggest impact. Clearly state what needs to be accomplished this week, this quarter, this year.

2.      Explain the impact. When the outside world feels chaotic, your team needs reminders that their work has value and meaning. Connect each project to the business goals and objectives. Explain how employees are impacting customers, clients, and the overall health of the organization. One of the most powerful ways to keep workers engaged during uncertain times is to highlight progress and wins. 

3.      Provide reasonable flexibility. Employees should have control over their schedules, as long as they are delivering results on time and on budget. For example, if someone seems distracted at the start of a meeting, ask if there is a better time to talk. They may need to shift a meeting from 10 a.m. to 2 p.m. to be at their best. These small gestures build trust and help people stay engaged.

4.      Double-down on communication. Establish regular check-ins to ensure milestones are hit. Regular conversations also provide an opportunity to find out how your team is feeling, their energy levels, and any roadblocks they’re facing. When employees can speak up about challenges, they can get the support or resources they need to finish the task.

5.      Promote well-being and psychological safety. Creating a culture of well-being and psychological safety is critical to helping employees navigate uncertainty. If needed, leaders can suggest mental health resources or provide access to employee assistance programs.

Savvy leaders focus on the future, and help employees do the same

For my entire career, I’ve had to maneuver around obstacles and learn from my experiences along the way. In fact, I wouldn’t be where I am today if I let myself get discouraged by setbacks or be distracted by challenges.

This example from the 2007 financial crisis illustrates what I mean. At the time, the mortgage crisis was wreaking havoc on the global economy, and businesses across many sectors were feeling the pinch. The company I led, which was focused on selling into the manufacturing industry, was no exception. As CEO, I could have given up, letting recession worries distract us.  Instead, we adapted to the new landscape through creative problem-solving and intelligent negotiating. We adjusted our margins in the short term and worked to secure a greater market share of the market, even amid adversity. We saw opportunity in chaos, and we didn’t allow external events to derail us.

To reduce stress and alleviate anxiety, all of us need to zero in on the things we can control: our work, our relationships and our well-being. As individuals, we can reduce social media consumption, limit stress-inducing political discussions and take care of our mental health. As leaders, we must support our employees with compassion, set clear expectations and foster a psychologically safe workplace.

During times of change and uncertainty, it helps me to remember that everything is a phase. By focusing on the future, I can lead my team to win after win, despite the roadblocks that we encounter along the way.

About the Author   

Donald Thompson, EY Entrepreneur Of The Year® 2023 SE Award-winner, founded The Diversity Movement, a Workplace Options Company, to fundamentally transform the modern workplace through diversity-led culture change. Recognized by Inc., Fast Company and Forbes, Thompson is author of Underestimated: A CEO’s Unlikely Path to Success, hosts the podcast “High Octane Leadership in an Empathetic World” and has published widely on leadership and the executive mindset. His new book is The Inclusive Leadership Handbook: Balancing People and Performance for Sustainable Growth, co-authored with Kurt Merriweather, Vice President of Marketing and Innovation at The Diversity Movement. Follow Thompson on LinkedIn for updates on news, events and his podcast, or contact him at info@donaldthompson.com for executive coaching, speaking engagements or DEI-related content.