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February 24, 2009

Recession Lessons

Managing employees when the economy is suffering and many companies are cutting back can be a challenge. Staffing service Robert Half International has just released a guide to the mistakes that managers should watch out for.

"The 30 Most Common Mistakes Managers Make in an Uncertain Economy" details some of the big pitfalls companies face. Among them are:

• Thinking your staff can't handle the truth. Managers need to discuss the effects of the downturn openly to help employees feel they have some control over the situation.

• Blaming those at the top. Middle managers should avoid the urge to evade responsibility. Instead, they should explain the reasons for tough decisions.

• Feeling people are lucky just to have a job. Even in difficult times, employees need positive recognition.

• Not asking for employees' help in expanding client relationships. Staff members may come up with new ideas that managers wouldn't have thought of on their own.

• Making work "mission impossible." Don't let hiring freezes force those left behind with overwhelming workloads. Instead, delegate tasks, bring in temporary staff or put some items on hold.

• Shifting the focus from the front lines. Client service matters even more when times are tough.

• Waiting to try new things. If you have a promising new service offering or client niche you want to pursue, don't wait for a turnaround to act. By taking well-calculated risks, you can get a jump on competitors and possibly carve out an additional revenue stream.

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