Managing talent in down times

It's been my observation, for companies I personally worked for in industry as well as consulting clients of mine, that performance feedback goes out the window during recessions.  It's easy to give feedback during good times when raises are relatively high.  During these difficult times, it's more important than ever to make sure you're taking care of your best employees.  These are your "A-players" , the ones you want to nurture and grow.  And it isn't always about money.

If money is the only thing you're using to motivate your employees, I suggest you reevaluate the way you're motivating your employees.  Although money and benefits are important to most people, I believe that you're A-players are motivated by more than just money.  So, what are some of the ways to motivate and encourage your best employees (not to mention all the others) that don't cost money?

1. Encourage your employees.  Yes, I know this seems basic, but I can't tell you how many Finance departments I've been in where there seems to be little encouragement.  In these uncertain times employees want to know that their contributions matter.
2. Offer a vision.  Employees want to know your thoughts about charting these rough waters.  Where are you going as a Finance department?  What do your employees have to look forward to?  How are you going to be a better group as you emerge from this recession?
3. Give your A-players meaningful assignments.  Not just what they do on a daily basis, but special projects.  A slow moving economy is the perfect time to look at the way you do things.  Work on eliminating non-value added activities.  I realize in many departments staff have been laid off so there may not be much excess capacity, if any.  But projects don't have to be huge.  They can  be small, incremental process improvements that make you more efficient.
4. Rotate your A-players through other groups.  Expanding their skill sets is a great way to motivate your best employees.  You might be thinking you can't afford to lose them in their current job.  Maybe so, but if you don't look out for your best employees now, they may very well leave when the economy improves.

Motivating employees should be about much more than money.  Make sure you set challenging but realistic goals in their performance plans and continue to push them to become better accountants, analysts, Treasury managers or whatever their job is.   Be honest with them about what's happening and cast a vision of the road you're taking to become a better Finance organization.  By doing so, your group will emerge as a more effective and efficient partner to your business.