How to Lead During a Recession, Part 1: Your Self-leadership
We’re kicking off a three-part series on how to lead yourself, your team and your organization during what seems to be an impending economic recession. Of course, it all depends on who you’re listening to and what you’re reading as to if a recession (or a slowcession) will hit 2023, but regardless of whether or not it happens this calendar year, we are still living and leading through a time where the threat of a recession is top of mind for many. And with inflation impacting the price of common household goods (like eggs), it can feel as though the recession is fast approaching.
In this article, we’ll discuss three ways you can best prepare for a potential recession and how to lead yourself well during one.
3 Ways You Can Lead Yourself Now to Prepare for a Recession
“Exercise and nutrition are two of the three pillars of stress reduction. If you were to pick just one activity to reduce your stress response and bump your mood, it would be exercise. Just MOVE! Nutrition, albeit not usually considered a key to stress reduction, is yet another key action to reduce your stress. It is NOT about your weight, it is about your mental and physical health. Many of us see nutrition as a should to lose weight when in reality nutrition is a tool to make us happier.”
Take care of your own well-being. At Building Champions, we define well-being to include the physical, social, mental and spiritual aspects of your life. That can look different for everyone, but you know what you need to be at your best. If you put in the work now to establish healthy routines, then they will be much easier to maintain should stressors (like a recession) become part of your reality. Ask yourself if you are nurturing all four of those areas, and if not, what you could begin doing to increase your own well-being.
Pay off debt. Life happens—and sometimes we have unexpected expenses that change our financial situation. But if you have the capacity to pay off debt, you really should. Don’t allow your debt to lead you; manage it and take back control. It’s been said that restricting consumer spending can actually cause a recession, so don’t act out of fear that a recession is coming and limit all spending. Instead, redirect some of your financial focus to paying off your debts and getting yourself financially healthy. And if you realistically can’t pay off all your debt right now, then consider consolidating any high interest debt. This will get you in good financial shape whether or not the economy takes a downturn.
Continue learning and growing your professional skill set. With technology’s availability and advancement, we have so much access to professional development. Run a quick internet search to find eCourses, books, YouTube videos, webinars and trainings focusing on the areas you want to become an expert. Take charge of your growth and commit to being a lifelong learner. As we shared a few weeks ago in a blog post, upskilling, micro-credentialing and reskilling are all areas that employees should be considering. If you own your professional growth and show your leadership that you are not only accountable to your own development, but also resourceful, motivated and willing to put in the work, you will become an employee that they will fight to keep—in spite of economic-caused budget restraints.
Focusing on these three areas now will prepare you for a recession and help you become a healthier version of yourself so that you can be your best and give your best to those you lead, serve and love.
How to Lead Yourself During a Recession
Maintain a healthy mindset. Remember to only focus on things within your control. If a recession does indeed happen, you can’t fight it. But you can lead yourself well while in it. If you maintain a positive outlook believing that things will get better, you’ll find yourself managing curveballs in a much healthier way. Plus, emotions are contagious. If everyone is journeying through the same really hard reality, wouldn’t you prefer to be known as someone who speaks encouragement and gives off positivity? We all have that choice. And it starts with the mindset we choose.
Prioritize your physical health. During stressful seasons, it can be easy to opt for a fast-food meal for dinner, loads of coffee throughout the day and an extra episode (or two or three) of that show you’re currently streaming just to take your mind off your tough circumstances. But if you don’t prioritize your physical health, no one else will. Don’t let your circumstances drive your behavior. Stay committed to your health. Choose an evening walk over an extra episode. Drink a glass of water instead of reaching for that third cup of coffee. And save money (and calories) by meal-planning on the weekends instead of grabbing a convenient dinner option.
Use your influence positively. As a leader, the energy you give off and the words you say will impact those in your life both at work and at home. Give yourself grace when you slip up during a time of stress, but don’t allow that to become your mode of operation. Anxiety breeds anxiety. Wouldn’t you like to be known as someone who brings peace to uncertainty?
Stay agile. If your role changes or if you find yourself needing to get a new job, be ready to adapt. If an economic downturn causes layoffs in your organization, then remind yourself of your strengths, experience and value. If you’ve been preparing yourself through continuous learning and improvement, then showcase that on your LinkedIn profile, resume and job applications. In an uncertain economy, it is important to remain flexible and remember that your identity is not tied to your job.
Be bold. As we say at Building Champions, what does this change make possible? Sure, a recession feels like a very negative change, but that doesn’t mean there isn’t opportunity. And if you’ve planned ahead and prepared yourself accordingly, there may very well be immense positive opportunity for you. Take those risks. Don’t miss out because of fear.
Time will tell if a recession is indeed headed our way, but it would be wise now to plan ahead and prepare yourself accordingly. As a leader, you have a responsibility to those you lead and serve to be at your best. So prioritize your own well-being and lead yourself well now despite the looming threat of a recession.
In the coming weeks, we’ll continue our series and share how you can best lead your team and your organization with a potential recession coming. Subscribe to our free weekly thought leadership to be sure you don’t miss out!
