There is no doubt about it; we’re all dealing with a difficult economic situation. While you can’t do anything about the volatile stock market, sinking housing market, or the meltdown of financial institutions, you can control the way you communicate with your team during these times.

The fact is that people are scared. When they are fearful, it is your job to create a sense of calm and a positive environment that encourages your team to stay focused on their day-to-day tasks.  Here are three things you can do right now to help accomplish this:

1. Be optimistic! All the fear-based news stories are creating quite a buzz. But where’s the optimism? Consider delivering some positive, proactive, solutions-oriented news to keep your team focused and on track. Determine a way to reach out to your people or clients on a weekly basis.  Explain how these events are impacting your business. Depending on the size of your group, this may be a phone call, e-mail, web meeting or just a talk over lunch. It can be a formal or informal communication. It should be a short message that highlights what you or your organization is doing that is POSITIVE. The key word here is POSITIVE. (This month’s webinar will walk you through how to craft this message. See details below.)

Your message may sound something like this:  “This week we have sent out several proposals to brand new clients in industries that are poised to grow over the next two years. We have the unique ability to serve all different kinds of industries. Therefore as one industry struggles, we can shift our business to an industry that is focusing on growth. This will ensure that we remain in position to grow over the next two years.”

2. Give more PRAISE. When someone on your team does well, be sure to recognize their accomplishment. It is important to let the individual know, but you should also inform the rest of the team. This helps breed a positive attitude and build team spirit. You should praise a specific behavior or event soon after the accomplishment. Consider giving praise in different formats. This means that you may send an e-mail, give a personal card, mention it in front of the team or have a one-on-one sit-down with the individual. It is important to be genuine and unpredictable with your praise.

3. Let them TALK. People express their fear in different ways. Individuals may express it as silence, anger, gossip or apathy, all of which are BAD. Find ways to connect with your people. Keep the needs of the individuals in mind. Some people will do better one-on-one, while others will do better sharing with a group or in writing. Sometimes just being encouraged to state their feelings of fear will be enough. Once you empathize with their fear, I recommend following up with suggestion No. 1, OPTIMISM.

I’m not suggesting that that you should be less than honest regarding your current situation. However, assuming that your business will go on, it is critical, as a leader, that you help people stay calm, focused and positive. To do this, they need more reassurance and a clear-cut direction.