Culture doesn't take a recession

By Jodi Duncan, President — Flint Group

Leading through difficult times challenges leaders in all kinds of ways. Making the hard decisions that are often uncomfortable and unpopular, can feel like the weight of the world. Being in leadership positions, you take the brunt of the frustration and hurt feelings as you navigate what will keep the company healthiest. You have to get comfortable with being the “bad guy”.

I've been in this business long enough to know that economic headwinds are not a question of if – they're a question of when. And when they hit, the first thing some leaders reach for is cost reduction. The second thing they reach for, whether they realize it or not, is culture.

That second one is the mistake.

People have a hard time defining culture. Culture isn't a perk. It's not the snacks in the kitchen or the holiday party. It's the invisible infrastructure of how a team operates – how people treat each other, how honest the communication is, how much individuals actually believe in what they're doing. And when you let that erode during tough times, you don't just lose morale. You lose the people who were holding everything together. And some employees, no matter how hard you try, will not appreciate your culture.  

Here's what I've learned – and what I've watched work – when the pressure is on. 

Be honest. Even when it's uncomfortable. 

People can handle hard news. What they can't handle is the feeling that leadership is managing them rather than leveling with them. But leaders will take blows because no matter how well you prepare or how much you share – bad news is bad news.  

When business slows or budgets tighten, your team already knows something is going on. The rumor mill will fill in any gaps you leave. So fill them yourself, directly and early. You don't have to have all the answers. You do have to show up and say: 

Here's where we are, here's what we're doing about it, and here's what I don't know yet. That kind of transparency builds trust faster than any team-building exercise ever will. 

Protect what makes you, you 

Every company has a culture that's working – something that makes the good people stay and makes the right clients choose you. During challenging times, it's tempting to streamline everything, including the things that make your culture distinctive. 

Don't. 

If your culture is built on collaboration, don't abandon cross-team communication because everyone is slammed. If it's built on recognition, don't stop celebrating wins because the wins feel smaller. The moments that define culture aren't the big events – they're the consistent, daily choices that signal to your team whether they matter. 

Resist the urge to perform positivity 

This one is important. There is a version of "culture maintenance" that is actually just theater – relentless cheerfulness layered over real anxiety. Your team will see through it immediately. And it will make them trust you less. 

Acknowledging difficulty isn't the same as dwelling in it. You can say this is hard and we're going to get through it in the same breath. That's authentic leadership. The alternative – pretending everything is fine when it clearly isn't – costs you credibility you won't easily get back. 

What actually keeps people during hard times 

This is worth answering directly, because it comes up a lot: What retains employees when you can't offer raises or increased benefits? 

• Clarity of purpose. People stay when they believe the work matters and they understand where the company is headed. 

• Psychological safety. Teams that can speak honestly – raise concerns, flag problems, disagree constructively – are more resilient. This doesn't happen accidentally. Leadership has to model it. 

• Autonomy and trust. Micromanagement spikes during uncertain times, and it almost always makes things worse. Give your people room to do the jobs they were hired to do. 

• Consistency from the top. Culture follows the leader. If you're panicking, they're panicking. If you're steady and honest, most of them will be too. 

These things cost nothing – and they're exactly what's missing in organizations that lose their best people in a downturn. 

The companies that come out stronger 

I've watched companies use economic pressure as an excuse to become worse versions of themselves. I've also watched companies use that same pressure as a forcing function to get clearer, tighter and more intentional about who they are. 

The difference almost always comes down to leadership. 

The organizations that protect their culture during tough times – that stay honest, stay human and stay consistent – don't just survive the downturn. They emerge from it with stronger teams, stronger client relationships and a reputation that's genuinely hard to replicate. 

Culture isn't a nice-to-have. It's your most durable competitive advantage. 

Q&A:

What has been the most difficult for you as a leader of a mid-sized agency in uncertain economic times? Demonstrating strength, empathy, transparency, and confidentiality at the same time is incredibly difficult. Squashing rumors and getting employees to truly understand the big picture also can be difficult. 

What’s the one thing you wish employees understood when going through challenging economic times? That leadership does not take these decisions lightly. It is painstaking and heart-wrenching to make decisions that impact people’s lives and livelihoods. I also wish people would ask more questions rather than tell themselves stories. We might not be able to share everything, but I know my leadership team welcomes the opportunity to quell any false info. 

How can employees show up to make a difference? Attitude is everything. I think we all know that happiness comes from within. We try to implement ways to help employees find fulfillment, but it’s largely on each individual to determine what that means. I learned long ago that no matter how hard you try as a leader, it is impossible to make everyone happy. 

About the Author 

Jodi Duncan is the President of Flint Group, a full-service marketing agency specializing in manufacturing, industrial, and dealer/franchise brands. If you're navigating organizational or agency challenges and want to talk through what we've learned, connect with us at flint-group.com/contact.