It is precisely during economically challenging times that we see whether a company retains its best people—or whether vital knowledge, experience, and trust are lost. This is exactly what retaining expertise during a crisis is all about: Are employees viewed merely as a cost factor, or as what they truly are—a crucial component of the company’s stability?
Yesterday I was once again at a family-run large enterprise that—like many others—finds itself in a challenging economic situation. High cost pressures, difficult decisions, and uncertainty are just as much a part of daily life there as they are in many other organizations.
But one statement really stuck with me:
“We don’t lay anyone off. We reassign them.”
Not out of sentimentality. But out of principle.
The entrepreneurial family does not view its employees as an interchangeable cost center, but as long-term sources of expertise. When economic pressure arises, therefore, the first step is not to cut staff, but to seek solutions: other locations, new areas of responsibility, new roles.
It is precisely this attitude that changes everything.
What this attitude triggers within the company
The effect is immediately noticeable.
The people there aren’t blindly optimistic. They know the economic reality very well. But they have something that has become rare in many companies facing crisis: security through reliability.
And from this sense of security arises something that cannot simply be ordered:
- Motivation to develop new solutions
- Willingness to take on responsibility
- Courage to address difficult issues openly
- Innovative drive despite economic headwinds
The key point is:
Employees believe the company’s commitment to retaining them.
And it is precisely this belief that changes behavior.
The biggest mistake in many restructurings
In many other companies, the process is exactly the opposite.
First come cost-cutting, layoffs, and restructuring. Only then does communication follow.
Then they are surprised by the consequences:
- withdrawal into oneself
- working to the letter of the rules
- exodus of top performers
- loss of knowledge that doesn’t show up in any Excel spreadsheet
The real problem is often not the cost-cutting measure itself.
The problem is the attitude that is communicated through it.
Because the central question is not just:
“How do we cut costs?”
But above all:
“What attitude do we demonstrate when things get serious?”
Three leadership principles for maintaining competence in a crisis
1. Reliability is stronger than reassurance
Employees don’t need platitudes like “Everything will be fine.”
They need guidance:
Here’s how we’ll proceed.
These are the criteria.
You’ll receive the next update shortly.
Clarity builds trust. Reassurance without substance destroys it.
2. Change Requires Dignity
When people are transferred, reassigned, or given new responsibilities, a clear explanation is needed:
Why you, specifically?
Why exactly there?
What is the purpose behind this?
Without this context, a sense of devaluation quickly sets in.
When the purpose is made clear, momentum is created instead of resistance.
3. Plain language relieves pressure on the system
Crises are no time for vague language.
Those who deliberately use unclear language create uncertainty.
Those who speak clearly take pressure off the system and make the ability to act possible in the first place.
Leadership is demonstrated precisely here.
Trust determines competence
In crises, companies don’t just lose jobs.
They lose competence. And often, they simultaneously lose their most valuable asset: trust.
Family-run businesses, in particular, frequently demonstrate that a stable core attitude makes all the difference.
Not always. But far more often than purely numbers-driven structures.
When the attitude is right, competence stays on board.
Then restructuring becomes a strategic decision—and not merely damage control.
Our book “Leadership Task No. 1: Communication” is now also available as an audiobook on Audible—for anyone who wants to navigate precisely these kinds of situations with polished language: clearly, respectfully, and effectively.
Yours,
Dr. Nikolai A. Behr
