Up until about three weeks ago, the economy was humming along quite nicely. Markets were soaring, a record number of people were in work, and tax revenues were booming. Things looked good.
Then a little virus came along and trashed everything.
Traders are used to the occasional crisis. Ten years ago, the global financial crunch sent markets into meltdown. Some people called in economic armageddon.
Today, we’re looking at an even graver situation according to https://www.dw.com/. Not only are companies highly leveraged – as they were ten years ago – but we’re looking at a dual supply and demand shock. People aren’t buying, and they aren’t producing. It’s a nightmare.
Motivating traders in an environment like this is a significant challenge. How do you get people to continue functioning in such a bizarre and unpredictable environment? We’ve never faced anything like this before as a community. Well, not in living memory, anyway.
Invite Educators And Speakers
The first thing to do is to try to provide traders with insights – intellectual tools that they can use to evaluate what’s going on rationally. Right now, it looks like the world is going to end, and economies are just shutting down. How are you supposed to make money for your clients in an environment like that?
Second, most traders aren’t viral disease experts. They don’t know what the economic impacts on an event like this are on the long-term health and wellbeing of the financial system. Will things snap back to normal in a few months? Or will this problem persist for years and drag everything down with it? It’s not entirely clear.
As https://thespeakersagency.com/speaker-category/keynote-speakers/ points out, there are lots of people who can speak on this subject. Large corporate gatherings are a big no-no right now, but that doesn’t mean you can’t get speakers to deliver webinars and live Skype sessions. In fact, with things as they are today, that might be your only choice.
Remind Them That All Crises Are Temporary
The stock market has crashed by around 30 percent at the time of writing this article. It could go lower. Some people predict a fifty or even sixty percent decline in equities. Uncertainty is that high right now.
For traders, this type of action can seem like the end of the world. It paralyzes them with fear, and it prevents them from making rational, future-focused decisions.
The world is not going to be on lockdown forever. Eventually, life will return to normal. Cars will be back on the road. Restaurants will be packed with people. And businesses will invest substantially in their capital and people.
Decisions, therefore, should still be made for the long term. Selling everything and curling up in a ball is not a rational strategy. Things will eventually return to normal, and the people who kept their cool throughout will ultimately be those who win.
Change The Way You Do Bonuses
Finally, you might want to reflect on the way that you do bonuses in the current climate. Judging performance in a year like this probably isn’t a good idea.
