by Peter A. Arthur-Smith, Leadership Solutions, Inc.®

“The things you can’t buy are dedication, devotion, loyalty—the feeling that you are participating in a crusade.” Herb Kelleher, Co-Founder, ex-CEO, SouthWest Airlines (1931-2019)

 With the Coronavirus crisis upon us it would seem insensitive to ignore it. It’s clearly providing enormous challenges to both leaders and managers at all levels. Some seem up to the challenge, although others don’t seem to be handling it too well. One thing is for sure, people show their true colors when there’s a crisis situation. Without trying to take sides, we’ll leave you to judge what’s the right course for leaders-managers to take in the circumstances.

We’re already witnessing record unemployment surges, although ironically a little more than a month ago the US was experiencing record employment levels. What a calamity! Unbel-ievable you might say. Even more interesting is to observe how different leaders-managers are dealing with it. They have three phases to handle: the economic shut-down, holding things together during the crisis, and reopening of the economy once more.

With the economic shut-down: we see and hear stories where owners and executives are using every tool in their playbook to retain their staff and remain connected to them. Perhaps with the aid of the government’s Pandemic Stimulus many will be able to do that. If they’re successful, it’s likely their staff will appreciate and remember their loyalty.

On the other hand, you read and hear about countless instances where people have just been laid-off without a second thought. There’s always that 15-25% of organizations where they were poised to go under anyway, consequently we can give them a break. For those remaining enterprises that encouraged their people to seek unemployment; their staff is probably in a state of shock from where they were a month ago. They will be particularly cognizant of those enterprises which are doing their best to ride the storm.

Those that are staying connected to their staff are probably having regular “social distancing” meetings with them either in person or through electronic media – including Zoom or Skype. They’ll be discussing how to take care of customers seeking support; often totally free to show they care. They’ll also be talking about product-service possibilities that they can offer so as to hang on to their customers-clients. Additionally, they’ll be pursuing potential loans covered by the recent Pandemic Stimulus Act. They know their staff will help them produce business levels that can repay these loans in short-order once the economic spigot is turned back on again.

Meanwhile their shuttered competitors will be focused on how they can conserve money, lie-low and/or offer products-services at an inflated price to take care of their own inconveniences. Yet others will become short-term brokers where they can get their hands on alternative “hot” products to sell at any mark-up their market will bear. They may well lean on any of their laid-off staff to help them do this.

When it comes reopening of the economy after the pandemic subsides: the companies that have hung on to their people – even if that included unpaid furlough but covering their medical insurance and needs – will have agreed action initiatives to pursue the moment the economic tap gets turned back on. Everyone will have decided among their teams: do we continue as we were, do we take on certain fresh initiatives, or do we take a big leap forward?

Their lay-off counterparts will have completed their financial analysis of options and cash flow projections for when things get moving again. Based upon those projections they will reach out to rehire some of their former employees: those that haven’t been snapped up by Amazon, Instacart and others who leveraged the downturn marketplace. It’s likely many others of their laid-off people will want to move on either immediately or when a future opportunity comes along.

You can judge which organization or teams are likely to still be intact a year from now. Is it the more enlightened leader who stayed connected with his/her people, through full or partial compensation or at least their medical coverage? Their revamped enterprise will have rallied around and found a positive way forward. More than likely their firm, business, practice or non-profit will have bounced back nicely, and they will be well-positioned for extra growth. They may have even paid off those Pandemic Stimulus loans with the extra support of grateful staff.

Or will it be those who shut everything down and laid their people off: as well as still be squeezing everything they can out of their enterprise. It’s probably operating pretty much in the same way as before, even though so many markets will have moved on post COVID-19. It’s also likely that many of their former laid-off staff will no longer be around. These same entities will have had to find and train new staff, who are likely throw-offs from other shuttered firms when the pandemic took off. They will bring all that attitude baggage with them, as well.

So what do you think? Which way did you decide to go?