As news of the volatile stock markets continues for a third straight day – right on the heels of the S&P U.S. credit downgrade – you can rest assured that your staff are feeling anxious. They, too, were caught off-guard by the economic downturn 3 years ago, and many are still reeling from the residual effects of layoffs, furloughs, and an overall increase in workload with little to no additional compensation.

This time, however, the warning signs of a possible deep recession are clear. Many employees are frightened of losing their jobs, benefits and amenities which they have grown to rely on, and their behavior is changing as a result. A fearful workforce may appear to be doing fine, but catching the subtle signs of employee fear is crucial to improving workplace morale and productivity.

At your company, have you noticed:

1. People who are often out sick suddenly fit as a fiddle?
2. An unusual number of employees in the office when you arrive, and staying after you leave?
3. Way more staff members taking lunch breaks at their desks?
4. A sharp increase in staff requests to meet with HR or union reps?
5. A significant decrease in staff coffee runs, and an increase in cigarette breaks?
6. Far fewer personal calls wafting through the office?
7. A spontaneous improvement in performance among your sub-par team members?
8. Unexpectedly Herculean efforts at “managing up” from your star players?
9. Far less joking around and friendly banter with staff in the elevator or cafeteria?
10. A hushing of tones as you enter the office?
11. A decrease in staff Internet usage?
12. Revitalized enthusiasm for long-dormant pet projects?
13. A sprucing up of employee workspaces, attire & personal appearance?
14. Staff working on weekends & holidays?
15. Employees cancelling vacations?
16. A sudden wealth of volunteers for unglamorous committees or tasks forces?
17. Longtime child care, transportation or other HR issues abruptly resolved?
18. A drop-off in complaints about the quality of car service, dry cleaning or other staff amenities?
19. Summer Fridays are suddenly not so casual anymore with regards to dress and hours?
20. It seems that everyone now has photos of their families prominently on display?

Yes, these could simply be signs of a motivated, hard-working staff. However, in this economic environment, you never know- they could be sending you some pretty clear signals that they’re terrified of losing their jobs.

What are some other signs that your staff is on-edge? As a manager, what can you do to help?

By now we’ve all heard the news about P&G downgrading the U.S. credit rating from AAA to AA+, and that despite more jobs being added in July than expected, the perception is that we are headed for a prolonged economic slump. Your staff is aware of this, and they are deeply afraid of losing their jobs, their pensions and not being able to support their families. This fear is pervasive throughout your company, and is fostering an unhealthy workplace environment.

Although no one can predict the future, as a senior manager, HR director or business owner there are some very simple steps you can take which, if done in good faith, will go a long way towards keeping staff anxiety down during these unstable times:

Stay in Touch with Them – Especially in times like this, nothing is more anxiety-provoking than The Unknown. If your communications directly with rank-and-file employees are infrequent at best and aren’t addressing the economy, they will fear what decisions are being made about their fates on the C-level; your staff wants reassurance that those at the top have the situation well at hand.

Listen to Their Concerns – Employees have a myriad of things to worry about, but just letting them know you are aware of these concerns – and take them seriously – will help take the edge off. Now is the time to ensure that your company offers clear avenues for employees to express their unease: an open door policy, management “office hours,” an Intranet message board, general inquiry email address (“staffconcerns@yourcompany.com” or the like) or even an anonymous “Questions for Management” box are all good ideas.

Meet Them in Person – However, now is NOT the time for you to hide behind company-wide emails, voicemails and memos. Everyone knows how valuable senior management time is, and for this reason nothing communicates genuine interest and concern for your staff than to arrange meaningful interactions with them in the flesh – be it via company-wide meetings, small groups or better yet 1 on 1 – to let them know you care about their well-being.

What other ways can you think of to reassure your staff, and let them know that senior management understands their concerns about the economy, their jobs and their future with your company?

It’s the summer of 2011, yet we are still reeling from the economic meltdown of the fall of 2008. Employees at all levels are anxious about their job security, and for good reason – Bloomberg recently reported that the economy remains “spongy,” and economic growth isn’t as robust as we’d hoped.

Besides the obvious fear of losing their jobs, however, what other things are keeping your employees awake at night? Based on my discussions with rank-and-file workers at our corporate team building events this past year, here’s a quick peek:

1) They are Professionally Plateauing – The economy has forced companies to enact hiring freezes and defer promotions, and employees are fearful to leave their jobs. The result here is that otherwise clear progressions in title and responsibility are not happening, and staff are staying right where they are, doing the same thing. The fear? They are becoming pigeonholed.

2) Their Skillsets are Becoming Irrelevant – Companies seeking to cut costs are increasingly outsourcing, and knowledge workers – especially those with specialized skills – feel that they are rapidly being replaced by call centers in Bangalore who can provide specialized skills off-site, at a fraction of the price.

3) They Can’t Have the Lifestyle they Want – Fewer employees to cut costs means more work for everyone, and that means longer hours – frequently workdays that begin well before 9am end long after 5pm, and span weekends/holidays. Who wants to live like that?

4) Uncertainty at the Top – In unsteady times, employees are desperate for stability, and are looking to firm leaders to tell them that the worst is behind us. They want to know that the company is healthy, the client work will keep coming and that the senior decision makers will make the right moves, yet they do not always feel this confidence is being communicated through the ranks clearly, if at all.

5) Changes in Salary, Benefits or Amenities – Even if their jobs appear secure for the near future, employees remain incredibly fearful of salary/hour cuts, furlough days, increases in deductibles and co-pays, loss of on-site babysitting, elimination of pension matching and a host of other things they have come to expect, and often depend on.

6) Lost Opportunity – Even though the economy affects us all, it’s still human nature to gaze over at the other side of the fence, where the grass appears much greener. Staff today worry that by sticking around at any one company for too long, they will miss out on important opportunities to develop skills, grow networks and advance their careers.

7) The Unknown – A fear blind to employment level, the mere unpredictability of the current environment and its affects on companies and entire industries is a constant source of worry for all corporate stakeholders, from senior management and board members to rank-and-file employees, contractors and consultants.

We remain in uneasy times, yet if you are aware of what your staff is fearing most, you can then take steps to address. What would you recommend to help calm an anxious workforce suffering from the above?