Dear Andy.(credit @ work)(impact of financial crises on financial executives)

My staff seems to be becoming more and more concerned about the effect the economic downturn may have on them. Although our department has been immune from downsizing, there have been cutbacks in other areas of the company. As a result, employees often seem preoccupied with what could happen and, consequently, less productive. Do you have any suggestions for easing their concerns?

It's very common for employees to seem on edge in light of the steady stream of bad economic news that seems to keep coming.

Perhaps the best antidote for team members' feelings of fear, dread and professional paralysis is better communication. More than half (53%) of financial executives recently surveyed by our company said lack of communication between staff and management was the biggest mistake companies make in managing their teams. This finding suggests that simply talking more frequently and openly with employees can lead to an increasingly effective and motivated staff.

Your team may be concerned about any number of financially related stressors, including job security, dwindling retirement accounts, falling home values and rising costs for many goods and services. With this in mind, consider these suggestions for improving communication and increasing the comfort level of your staff:

Communicate responsibly. It's essential to share information with employees on a regular basis even if you don't have all the answers to their questions. Tell them what you know and be honest about what you don't. Offer reassurance if you can but avoid speculation that could either fan fears or offer false hope. In addition, be upfront about the challenges facing the business and explain employees' critical role in addressing them. This can help staff members fee[ more in control of their situation and better focused and motivated as a result.

Monitor concerns. Especially during ...