At my local New Hampshire Walmart, in the back by the employee restroom, hangs a big sign. It reads:

TODAY'S STOCK PRICE

$50.82

TOMORROW DEPENDS ON YOU!

Here's one big problem with this sign: Tomorrow does not depend on Walmart's employees - and you can be sure they know that. Why do you think the stock price plummeted in August? Was it because some employees were rude, forgot to sweep the floor or smile at a checkout? Of course not.

Share price dipped because of the debt ceiling fiasco, the jitteriness of markets provoked by recurring sovereign debt crises, because Americans over-borrowed for years and banks encouraged them to do so. None of this has anything whatsoever to do with how friendly, efficient, knowledgeable or energetic Walmart employees have been in the daily performance of their jobs.

Why It Demotivates Workers
I am assuming the sign was meant to inspire the workforce -- but its impact will be quite the reverse. What it does is to remind employees (if they needed reminding) that they are helpless in the face of an economic disaster they can't influence. Reminding individuals of their impotence is as far from inspiration as it is possible to get.

So, in the current economic doldrums, what can any leader do to boost morale?

1. Be honest about what is happening. Vague pep talks don't help; they just make everyone cynical.
2. Set targets which are a stretch but are achievable. Transforming the U.S. or global economy is beyond Walmart's or any company's employee capacity. But doing something better today than yesterday isn't. Morale rises when targets are defined and met or exceeded.
3. Make promises about the future only insofar as you know you can guarantee them. If you can't make bullet-proof promises, don't try. You gain credibility when you honor your pledges but you lose it when you can't.
4. Keep communicating. Silence will always be mis-interpreted. So communicate more than you think you need to and ensure that everyone has the same accurate information. If you leave an information vacuum, it will fill with nonsense.
5. Acknowledge that everyone is stressed - not just because of what is happening in the economy or in your company but also because many of your employees may be in families that are experiencing layoffs or foreclosures. The stress inside the company may be exacerbated by strains when your workforce goes home. You don't need to know the details but you can recognize that everyone is carrying a load.

Further Reading:

Inspiration the Harry Potter Way
What's Wrong with Twitter?
Mind Your Manners!