Shawnee Love   •  
January 8, 2016

Global Markets Tumble read the headline yesterday, and it has been much of the same the last few days. What a start to 2016.

Business-wise, some industries are apparently joyous.  Opportunities abound for Canadian film makers, exporters and hospitality and tourism operators.  Their products are on sale in the international marketplace and international consumers and businesses are taking note.  Canadian tourism operators have the added benefit of Canadians considering vacations at home since the rest of the world has become significantly more expensive.

However, if you aren’t in one of these categories, then chances are your business outlook might appear a bit more threatening. Even if your marketplace is domestic, the instability and downward pressure on the Canadian dollar often manifests as lower sales when consumers opt to save their pesos for the rainy days occurring.  It’s worse if you have to purchase supplies and services beyond Canada’s borders because then you are doubly impacted with higher expenses as well.

Smart business owners are taking stock and consulting their advisors, intuition, and oracles to figure out how 2016 is going to play out in their businesses, and they are building their strategies accordingly.

Employees are also taking stock and aligning their goals and plans with what they see coming down the pipe.  Normally this time of year, Spring Fever hits and we see a lot more interest in job hopping.

However, when the economy looks unstable, people become less willing to give up the security they have with their current employer to become “last in” to a different company- especially knowing that “last in” can often equate to “first out”, i.e., first to be laid off if jobs are cut.

That desire for security amidst an unstable economy is good for employers as it lowers attrition and the associated costs and time for replacing employees.  But it is somewhat of a double edged sword because these employees who stay for security often expect their annual wage increase which many companies find difficult to provide in the face of decreased sales and lower revenues not to mention the uncertainty of how long the downturn will last.  You can’t blame employees.  They too are paying more for almost everything they buy and have less at the end of each month than they did the year before.  This of course breeds dissatisfaction which can lead to lower morale and even withdrawal of effort (aka the dreaded “presenteeism”).

Communication is never more critical than in challenging times and that is what is needed to stop this negative spiral, retain your employees, and manage expectations.  As a leader, you will shine in these times if you communicate often about:

• How your company is being affected,
• The plans to meet the challenges of these unstable times, and
• How employees will be affected.

Get ahead of the rumours and frustrations, instill confidence and build trust- a strong foundation for leadership and continued business success.