I’ve been blogging about our tough economic times, and now I want to speak to business owners and managers about the effects in your workplace.

Don’t be surprised if morale is low among your employees, particularly if there have been some layoffs. Even those employees who kept their jobs may not have survived emotionally intact. And quite frankly, that affects their productivity.

You might start by simply acknowledging the difficulties your workers have faced. Let them know that the boss appreciates them “hanging in there” during uncertain times. And if the financial prospects are still ambiguous, acknowledge that, too.

You may have no money for bonuses or pay raises, but that’s not the only reason people work hard. Take time to recognize employees individually for their hard work, their accomplishments, their contributions to the company. Be specific in your praise and they’ll know you mean it. Psychological rewards are mighty.

Next up: managing your own uncertainty.