The latest S&P Global South Africa Purchasing Managers’ Index (PMI) paints a picture of a rocky start to 2025 for South African businesses, as operating conditions slumped to their lowest levels in January since July 2021.

As a business owner, putting on a brave face is not easy, but keeping your employees engaged and motivated during tough times is not just beneficial – it is essential for resilience and long-term success. Here are five practical ways to boost employee confidence in challenging circumstances:

1. Communicate Openly and Honestly Employees can sense when times are tough, and a lack of transparency results in fear, speculation, and uncertainty. Keeping your team informed about the company’s challenges, upcoming changes, and the strategy to turn things around is crucial. However, this transparency should be balanced with hope and reassurance. Instead of vague or overly optimistic (and unrealistic) statements, share concrete plans and involve your employees in discussions where possible. If tough decisions such as cost-cutting or restructuring need to be made, provide clear reasoning as to why, and don’t forget to show empathy. Be sure to read your labour relations policies for guidance and be careful not to let the environment become toxic and ensure unaffected employees don’t feel at risk.

2. Recognise and Celebrate the Small Wins During difficult periods, employees may feel undervalued or uncertain about their future. To keep confidence levels up, it’s important to celebrate both individual and team achievements, no matter how small. The business may not be able to pay bonuses, but recognition doesn’t need to be monetary to be meaningful. A personal, handwritten thank-you, a shout-out in a team meeting, or a company-wide email highlighting an employee’s contribution can go a long way in reinforcing their sense of value and purpose, ensuring they feel seen and valued.

3. Invest in Employee Development Tough times often lead to budget cuts, and employee training is often one of the first areas to be impacted. However, investing in skills development can be a strategic advantage. When employees feel they are growing professionally, they are more engaged and motivated. Consider cost-effective ways to provide training, such as mentorship programmes, knowledge-sharing sessions, SETA-funded programmes, or free online courses. Encouraging employees to upskill not only boosts their confidence but also strengthens your business by equipping your workforce with new skills.

4. Provide Support and Flexibility Financial and workplace stress can take a toll on employee wellbeing, leading to ‘quiet quitting’ and burnout. As a leader, demonstrating empathy and support is crucial in maintaining morale. This could mean offering flexible work arrangements, such as a select number of days working from home per week, or creating an open-door policy where employees can discuss their concerns at any time, without fear of repercussions. Businesses that prioritise employee well-being often see higher levels of commitment and performance, even in challenging times.

5. Reinforce the Greater Purpose Even at the best of times, employees need more than just a salary to stay engaged, but this is particularly true when the business is struggling. Employees need to believe in the work they are doing and need to want to turn things around. To ensure this happens, remind your team of the company’s mission and how their individual roles contribute to the bigger picture. Employees need to feel that they are having an impact in their roles. It’s also the perfect time to rediscover your “why” and make sure everyone knows it. What impact are you having on your clients, community, or broader economy? When employees feel a sense of purpose, they are more likely to stay motivated and push through adversity. Aligning day-to-day tasks with broader company goals ensures that employees see meaning in their contributions.

As the saying goes, “Tough times don’t last, but tough people do”. While the S&P Index may reflect a tough current business environment, it shows optimism for future activity, with 41% of panellists expressing positive expectations for the coming months, compared to just 3% predicting a downturn. Against this backdrop, remaining optimistic is a big part of your role as an entrepreneur. It’s important to lead with confidence, inspire your team, and create an environment where employees feel valued and motivated.

Jeremy Lang is the managing director at Business Partners Limited.

BUSINESS REPORT