For the past few months newspaper headlines have been about the declining state of the economy, businesses going into administration and widespread redundancies.

Those still in employment, meanwhile, have to contend with no pay rises and extra responsibilities as they take on the workload of those made redundant. It's no surprise that morale is low, with high levels of stress and fears for job security across small businesses in differing sectors.

But it's more important than ever to keep the impetus going in a recession. Companies that neglect their staff during a downturn run the risk of demotivated employees just at the time when they should be made to feel secure, appreciated and rewarded in order to get the best out of them. Employers' attitudes to staff at uncertain times can be a key factor in influencing a successful outcome when a recovery does come.

The following are some of the "softer" ways in which companies can ensure staff remain focused during a downturn:

• Offer employees further training so they can acquire new skills in order to progress their careers
• Ensure staff feel engaged at work by giving clear objectives that are aligned with the company's values and strategies set in place to work through the recession
• Keep personnel updated on company progress. Communicate regularly via all available modes such as the intranet
• Give employees a "voice" through consultation, fair appraisal systems and rigorous grievance systems so any issues can addressed before they escalate
• Where possible, provide flexible working conditions. Such arrangements can also reduce office overheads
• Acknowledge and recognise staff by showing appreciation for a job well done

Such strategies can benefit the psychological wellbeing of employees in times of stress. But in the current climate it's also important to provide benefits that impact on their overall remuneration.

Incentives can and do encourage higher levels of performance. They are frequently used to reward achieved targets, acknowledge loyalty and improve an individual's professional performance and can form an attractive part of an employee's package, enhancing the quality of their working life and adding value to their contracts.

Any incentives need to be relevant to a business but also affordable so in these troubled times it's wise to use a tried and tested technique. They must also be perceived as something that represents value, which staff will work hard to attain.

Before setting up any kind of motivation programme, there are fundamental steps to initially consider:

• Be clear about the programme's objectives
• Consult with employees to discuss the motivational rewards that are available
• When devising any motivation programme, factor in employees' demographics to ensure that the reward chosen has universal appeal
• The motivation programme should be easily understood and promoted extensively. Communicate with staff regularly ,using more than one medium, updating participants regularly on progress and reminding them of the rewards that are attainable
• Involve senior staff to drive forward any programme, as this will help ensure that the project is workable from an operational viewpoint;
• Acknowledge individual success stories. Everyone likes public recognition, especially in tough trading conditions.

By using motivational tools to encourage staff during stressful times, companies can communicate their commitment to the wellbeing of employees, encouraging them to work as part of a team and prepare for the economic recovery.

For more information visit www.houseoffraser.co.uk [1]