Recession-Proof Leadership: Transparent Communication and Managing Team Anxiety in Tough Times

By Jenny Holly Hansen | WBN News | May 26, 2025

Economic downturns don’t just affect balance sheets—they affect people. Behind every budget cut, supply chain delay, or lost client is a team of individuals who may be quietly asking themselves, “Am I next?” “Can I count on my job?” or “Does leadership have a plan?”

In times of uncertainty, the strongest recession-proof strategy isn’t just financial—it’s human. And at the heart of that human strategy is transparent, steady communication.

Here’s how I approach leading through economic turbulence by staying clear, honest, and people-first:

1. Acknowledge the Elephant in the Room

Silence creates fear. When leaders avoid talking about tough topics—like tightening markets or layoffs—employees don’t feel reassured. They feel abandoned. Rumors fill the void, and anxiety spreads fast.

Instead, I make it a priority to acknowledge reality head-on:

• “Yes, the economy is shifting, and we’re watching it closely.”
• “No, we don’t have all the answers—but we’re committed to sharing what we know, when we know it.”

That kind of honesty creates a baseline of trust. It reminds people that they’re not being left in the dark.

2. Over-Communicate with Clarity

During good times, a monthly town hall might be enough. In a downturn, I double or triple the touchpoints:

• Weekly updates (even if it’s “no new changes this week”)
• Team huddles for check-ins and morale
• Anonymous Q&A channels to address unspoken worries

The key is to be consistent, not just reactive. When communication becomes a habit, not just a crisis response, teams feel more secure.

3. Explain the “Why” Behind Every Decision

Tough decisions—like hiring freezes or restructured roles—hit harder when they seem arbitrary. So I always explain the reasoning:

• “We’re pausing hiring so we can protect current roles.”
• “This shift allows us to focus on our most stable revenue channels.”

Even when the news isn’t good, understanding why helps people feel respected. It gives context, not just consequences.

4. Give People a Role to Play

Anxiety thrives in passivity. When people feel powerless, stress builds. So I turn uncertainty into action by asking:

• “Here’s what you can do to help us weather this storm.”
• “Here’s how we’re measuring what matters right now.”

This helps channel nervous energy into purposeful effort—and shows that everyone has a hand in the company’s resilience.

5. Normalize Mental Health Conversations

The pressure of a recession hits people differently. Some may be caring for financially stressed family. Others may have experienced job loss in past downturns and carry that trauma with them.

I make it clear that it’s okay to not be okay.

• I share employee assistance programs and resources.
• I encourage time off when someone needs to reset.
• I model vulnerability myself when appropriate.

Leadership doesn’t mean being unshakeable—it means being real, and showing your team how to move through uncertainty with integrity.

6. Celebrate Small Wins

When the big picture feels heavy, small wins matter more than ever. A new client, a completed project, even a great piece of feedback—these are morale boosters that remind people their work still has impact.

Recognition is a recession-proof tool. It doesn’t cost a thing, but its returns are huge.

Final Thought

During recessions, strong leaders are like lighthouses. We don’t pretend the storm isn’t there—we help others find their way through it. Transparent communication isn’t just a leadership tactic. It’s a lifeline. And when done right, it doesn’t just reduce anxiety—it builds a culture of trust that lasts far beyond the downturn.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance. With 19 years experience, she will well versed in the technical aspects of business coverages.

She can be reached at 604-317-6755 or jholly-hansen@wbnn.news. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Let’s Meet Up:

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

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