As we see the early signs of economic recovery, and as leaders we continue to constrain spending, there are many in the workforce who remain anxious about their futures—anxiety that translates into lower morale and a bleaker bottom line.

We can’t measure this anxiety or work fear precisely, but it’s there. It’s corrosive, eroding confidence, the willingness to take risks, and overall productive energy—i.e., the spirit of the workforce. When there are layoffs, restructurings, or economic crises, the workforce’s productive energy can drop as much as 40 percent.

Workers need hope and a belief that their hard work—and many are working harder than ever—is not in vain. Re-engaging this spirit can become a major contributor to our economic revival. This can be done in a number of ways:

• Open the Lines of Communication: Most of us have been heads down this last year. Two-way communications on topics other than sales and delivery are a luxury. And yet now, as our workforce is reeling from the impact of the recession and their own job fears, this is the time to open up the lines of two-way communication and have it be an ongoing commitment rather than just an event.
• Conduct an Ongoing Dialogue: Leaders can listen to what is going on in the hearts and spirits of their workforce. It’s about being curious. How have they dealt with this crisis? What has been its impact on their lives and their families? What are their greatest hopes and concerns for the next year? This dialogue best happens in small, facilitated groups in a process that is repeated over time.
• Provide Feedback to Rebuild Confidence: Summarize what you heard in the dialogue sessions, and feed it back to the employees. This rebuilds confidence and a shared understanding of the challenges ahead.
• Leadership Actions: Actions taken on any issues or challenges raised can only build additional momentum and leadership credibility.

Re-engaging the spirit of the workforce is perhaps the most important strategic leadership action that can be taken at this point in the economic recovery. It is a recognition of the human and psychological toll this last year has had on everyone. Through dialogue, leaders can provide a way to cope with the hidden anxiety the workforce feels and begin to rebuild confidence and hope.