The economy is in crisis mode. Business leaders are going to have to do everything in their power to turn things around. In a piece for finews.first, Brigitte Kaps discusses how they can effectively − and decisively − communicate during a downturn.

This article has been published on finews.first, a forum for authors specializing in economic and financial topics.

According to the most recent estimates by the International Monetary Fund (IMF), global economic growth is going to fall to 2.8 percent this year, down from 3.4 percent in 2023. From 2024 on, the expectation is that it will hover around 3 percent. Switzerland, for its part, will likely eke out very marginal gains in that time.

That means that CEOs currently face the challenge of ensuring that their business remains on track. They also need to provide a picture of future prospects to employees and investors and communicate them effectively.

Successful communication in difficult economic situations requires a balance of honesty, optimism, and – most importantly – empathy! The tips below can help:

1. Explain the Context

Your audience has to understand the broader economic context influencing your company. You should provide simple and easily understood explanations of external factors that influence your business, including market trends, and sectoral or regulatory changes.

2. Be Honest and Transparent

Honesty and transparency are decisive in communication, particularly in difficult economic times. Acknowledge the current conditions and their impact on your company. Avoid playing down or portraying the situation as rosier than it actually is, as that can undermine the trust stakeholders have in you.

3. Show Empathy

Show an understanding of the personal impact that an economic downturn can have on your employees and investors. Show compassion and understanding in your communication while reassuring them that you are doing everything to ensure their well-being and the company's success. Be open to feedback and respond to questions or doubts with empathy and professionalism.

4. Concentrate on Solutions

Recognize the challenges while pointing to the steps your company is making to manage them. Share the initiatives, strategies and measures that you intend to implement to mitigate the impact of recessionary developments. With that, it is also important to highlight your company's resilience and adaptability in a tough business environment.

5. Communicate Opportunities

Your company may see opportunities that you can take advantage of in a shrinking economy. Communicate all the potential opportunities such as new trends you are following, or innovative solutions that you have in play. These need to be backed up by facts and numbers. It is a good way to show that your company is proactively looking for new ways to grow.

6. Remain Positive But Realistic

Even though it is important to keep the tone of your communication positive, you also have to be mindful of being realistic about the challenges your company faces. Avoid empty promises or unreachable forecasts. Concentrate on achievable targets.

7. Communicate Regularly

It is particularly important to inform stakeholders regularly about how you are progressing in a difficult economic environment. That can include updates, financial reports, question-and-answer sessions, and any other relevant information.

Brigitte Kaps is the CEO and founder of Rent a PR. She holds a Master of Advanced Studies in Business Communications (HWZ, MAZ & LSE) and has studied communications at the Frankfurt University of Applied Sciences. She also has 20 years of international experience working in bank sector management roles.

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