Management Mistakes to Avoid in an Uncertain Economy

Management Mistakes to Avoid in an Uncertain Economy

While the current economic downturn is in many ways unprecedented in its scope and severity, accounting leaders can still learn from missteps other managers have made in previous recessions. Robert Half International’s recently released guide The 30 Most Common Mistakes Managers Make in an Uncertain Economy discusses a number of problematic pitfalls to avoid.

Here are three of them:

Thinking your team can’t handle the truth. Frequent communication with employees is always integral to success. But providing clear, candid and timely information is especially critical during hard times for businesses. Tell your team as much as you can as soon as you can. It’s when workers feel blindsided by announcements of layoffs, salary freezes, pay cuts, mergers and other changes that trust and motivation plummet. Provide a big-picture overview of your firm’s situation. Is the company restructuring to save jobs? Will priorities shift significantly? How did the firm survive previous downturns? Describe what, if any, changes are on the horizon, and how employees will be affected. Encourage questions and let your staff know you’ll keep them in the loop.

Cutting training programs. Though they are often among the first areas to be cut, consider the ramifications carefully before slashing professional-development budgets. Skimping on employee educational programs can dull your competitive edge, and undermine your recruitment and retention efforts. The key is to recognize that there are myriad ways to support the professional growth and education of your team. Mentoring programs, e-learning and in-house training sessions are just a few cost-effective options.

Feeling that employees are lucky just to have a job. This assumption is based on a belief that when the economy is weak, people wouldn’t dare consider leaving. As a result of this thinking, some managers figure they can let their retention efforts slip. The truth is, while workers may be happy and appreciative to have stable positions, you can’t afford to take them for granted. Talented accounting professionals are marketable in any business climate. If you want your top performers to stay with your firm over the long term, continue to offer whatever incentives you can and frequently recognize them for their outstanding contributions.

Submitted by Robert Half Finance & Accounting. Founded in 1948, Robert Half Finance & Accounting, a division of Robert Half International Inc., is the world's first and largest specialized financial recruiting service. Robert Half Finance & Accounting is headquartered in Menlo Park, CA, and has more than 360 locations worldwide.

To order The 30 Most Common Mistakes Managers Make in an Uncertain Economy, please visit www.rhi.com/30Mistakes.