It is during difficult periods that managers really need to show their mettle and the present economic situation is just such a moment. “Now, more than ever, managers and leaders have to lead the way out of the turbulent times and prepare themselves and their teams for the many challenges that will face them as they go into the next six to eighteen months,” says Jo Causon, director of marketing and corporate affairs at the Chartered Management Institute.

An institute survey of 1,118 senior executives indicates that just one in five individuals feel secure in their job and 54 per cent admit that work has become more stressful. Two thirds think that the present state of the UK economy is having a negative impact on their organisation and 32 per cent say that financial pressures are being created by rising energy costs. There are also concerns over employee motivation (29 per cent) and weak demand (27 per cent).

But, despite the apparent doom and gloom, respondents are geared up for it, with 33 per cent still keen to take risks, 57 per cent willing to accept extra work, 75 per cent viewing the downturn as presenting them with greater challenges and 37 per cent saying that it has ensured they are more focused at work. Just over half are either “optimistic” or “very optimistic” about business prospects in the next 12 months.

“It is not about being unrealistic,” Causon says. “It is about being focused and committed to deliver the changes, which means that all the skills of managers and leaders are absolutely critical at this time.”

Far from staying put, 60 per cent of the executives say they would be tempted to move if the right offer came along, while just over a third are actively looking for a more senior position. The fact that senior managers are prepared to change jobs means that they also need to think carefully about how to retain their business’s top talent.

Neil Young, chief executive of the Young Group, a property management company, says: “Good people have probably proven themselves in a more favourable market but when there is a slowdown, people really earn their stripes. If you do not have the right management in place, it gets even more difficult to deal with all the trials and tribulations on a daily basis.” Ros Kindersley, managing director of JFL Recruitment, notes that during a downturn the work becomes less exciting and staff need to see how they can benefit in the long term.

On the subject of staff cuts, she says: “We would not want to repeat what happened in the early 1990s or 2001, when a lot of good staff were let go, then when the market picked up there was a real skills shortage.”

While 78 per cent of senior executives have experienced redundancy, 73 per cent believe that there is less stigma attached to it than in the 1990s. “If you are made redundant you are available immediately. It is a card that you can play to your advantage,” Kindersley says.

About a third of respondents to the institute’s survey say that their organisation has already frozen recruitment. And while innovation can be overlooked during hard times, 68 per cent of managers say it should remain a focus.

The present situation is a chance for managers to shine by avoiding knee-jerk reactions and managing change, while involving staff.

Causon says: “Managers need to be honest about their situation and the organisation’s situation with a heavy degree of realism. But, more importantly, people are looking for leadership, so the need to be very clear about the way forward is absolutely critical. You do not have to have all the answers but, as a manager or leader, you need to be able to create an innovative environment, where people feel that they can contribute.”

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