The governor of the Bank of England, Mervyn King, has warned the UK economy faces a “choppy recovery” and it will be “several years before the economy adjusts back to anything we can call remotely normal”.
It has also been reported that the Bank lowered its economic growth forecast and said inflation would stay higher for longer than previously forecast. It now expects the economy to grow by less than 3% in 2011, down from its previous forecast of nearer 3.5%.
This comes at the same time as the news that house prices are falling again and the Chartered Institute of Personnel and Development (CIPD) has released a research finding that 32% of employers are planning to cut jobs in the next three months.
All of this means that employees will feel even less secure in their jobs. It would be a fair assumption that this insecurity would encourage employees to work harder, in order to keep their position and in the short term this may be true. However, because we are human beings, with insecurity come distractions from work, a possible unintended climate of fear and this all results in an overall drop in performance.
Although there are opportunities for organisations to streamline their operation and perhaps dispose of some of their under-performers there is an essential need for strong, ethical leadership. Good leaders can navigate their staff across this difficult landscape in four ways:
- by good communication
- by treating their staff with respect and fairness
- by providing an inspiring vision of the future
- by demonstrating their integrity
Authentic use of these four elements acquires the trust of your staff, which is essential for good performance. Finally, you need to provide your staff with an understanding of how their contribution is helping the organisation, in the new Performance Landscape, to achieve success. To help you with this follow the link.