The economy is foremost on almost every business leader’s mind right now, and rightly so.  Many leaders look to entrench their company in a full defensive posture.  This approach has to be incorporated, to some extent, during these economies.  However, this is an excellent time to be aggressive in the market and to cut against the grain of conventional wisdom.

BusinessWeek.com offers up specifics of this approach in their article Managing Employees in a Downturn:

For many managers, recessions prompt a near-autonomic reflex: Hunker down, reduce head count, and cut every cost you can. While a certain dose of those bitter pills is unavoidable, smart leaders see downturns as having plenty of upside, too. Talent is cheaper. Companies can gain market share as others cut back. And savvy investments give bold players a head start when the economy picks up.

I remember going though this same discussion back in 2001 before we were blogging.  We talked to companies about the opportunities that existed in a sliding economy.  One thing that is certain – talent is cheaper during an economic downturn.  That is why it is often a good time to upgrade your salesforce during these times.  For that matter, it is a good time to upgrade any position for which you feel there is a need.

There is an emotional component to monitor among your sales team that is quite important during this time and the article points out these items.  Retention is still a key focal point for any sales manager during uncertain times:

Amid pressure to downsize, it’s easy to forget that talent retention is a critical concern during a recession. Michael Kesner, a principal at Deloitte Consulting’s human capital practice, notes that “companies who took advantage of employees in past downturns were rewarded with people bailing when things turned around.” To avoid that, some of Kesner’s clients are adding more weight to factors employees can control—such as customer-satisfaction scores or production levels—when deciding on bonuses.

The key item to remember is that strong salespeople are always in demand no matter what the economy.  We have seen many good salespeople jump to a new opportunity during a downturn, especially when they perceived their current employer’s future as being in doubt.  Stay close to them and make sure you are still finding rewards for them.

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