With crude oil prices having plummeted dramatically in just six months and news of extensive layoffs at some of the largest oil field services companies, it is understandable that people in the energy sector are feeling a bit antsy. That uneasiness and uncertainty has a lot of managers looking for guidance.
This is a time for prudency, not panic. As a manager, you need to calm employees’ anxieties and keep market pessimism from impacting performance. Your common courtesy and open communication can go a long way toward building trust and commitment among employees.
Communicate openly and honestly
In times of crisis, no one wants to hear platitudes. Communicate frequently and be honest about the company’s condition. They will be more likely to ride out the storm with you if you treat them with sincerity and respect.
Address fears of layoffs
Concerns about layoffs, whether real or rumored, are especially distracting for employees and destructive for your company’s morale. You may not be able to share extensive details, but be frank — employees will be better able to prepare for a worst-case scenario if they know what’s within the realm of possibility. If layoffs are not in your near-term plans, quell your employees’ immediate fears without making any long-term guarantees.
Review the status of employee benefit plans
If your company’s stock has taken a hit, it’s probably taken a toll on some employees’ retirement plans. A well-diversified 401(k) account will feel less impact from market declines. As an employer, you should review your existing benefits plans. You may also want to offer educational opportunities for employees to learn more about their investment options and the importance of diversification.
Take a balanced approach to cutting costs
During downturns, it is natural that business owners would want to cut costs. Your employees will understand, and even respect, that decision. When choosing where to cut back, be sure to take a balanced approach. Think twice about canceling the company picnic if your management team is still flying first class. Disparity, whether real or perceived, can lead to morale issues.
Provide new and challenging assignments
Even if the company’s growth is stalled, that does not mean your employees’ careers have to be stagnant. Keep your employees motivated by assigning additional responsibility to someone who has proven capable.
Encourage resolve and ingenuity
Adversity often breeds opportunity, so rather than retreat, challenge your employees to find those new opportunities. Allow them to brainstorm and listen to their ideas. Collaboration will breed loyalty among employees and could generate a worthwhile idea.
Leading in this market environment is challenging. There might be days you would rather run for cover than concern yourself with rallying the troops, but as a manager, you are accountable to the people who work for you. Embrace honest communication and treat your employees as you would want to be treated.
