Don't Get Cocky in the Recession

The US government reported this week that the unemployment rate has reached 9.7%. It’s worth noting that the rate only includes those people still looking for work; if you add in those who have given up looking, it’s certainly a bit higher. Leaders and managers may see themselves in a position of “employment dominance” created by a weak labor market.

Think twice, though, before adopting this attitude yourself. When it comes to Creatives, you still need to be careful about losing them.

First of all, remember that the most talented Creatives will always have other options, and the most talented ones are the ones you want to keep. Firms are still hiring, headhunters are still calling, and the Creatives most attractive to others are the ones you most want to hold onto. Adopting an attitude of “hahaha, I’ve got you now!” is just going to encourage them to go out the door.

Next, consider that a weak labor market in the US doesn’t equate to a weak labor market everywhere. Asia is bouncing back out of the recession, as are some European countries. Creative talent is increasingly mobile, ad if opportunities arise in other countries, your employees may jump. Don’t think an overseas move is out of the question…more and more people have an interest in trying out life in another country, perhaps due in part to the explosion of university students who are studying abroad and realizing just how cool it is to live somewhere else for a while. And of course, there are always telework opportunities with overseas companies, too.

Finally, rather than seeing this as a chance to consolidate power over your employees, you should instead view it as a chance to beat out your competitors. Many companies’ weaknesses will surface during a recession and they will grow weaker. You should use this chance to increase your market share and strengthen your firm for the day when the economy recovers. You should be trying to come out of this downturn with an improved position, and for this you need a motivated, high-quality workforce.

If you view your work as a power struggle between you and your employees, then you have a problem. Hopefully, that’s not your attitude, and if it is, then you really need to change something. Don’t look at a recession as a chance to make yourself stronger relative to your employees. No general ever won a battle by using a lull in the fighting to hammer is own troops rather than hammering the enemy. Use, don’t abuse, this opportunity.