Flipping the power switch, Salesforce has an internal scoreboard that tracks effectiveness among managers with more than five direct reports based on biannual surveys from employees. Around since pre-pandemic times and updated two years ago, its used as more of a leadership development tool than a performance tool, a Salesforce spokesperson explained to Fortune. 

This leadership score, as Brent Hyder, president and chief people officer at Salesforce, described it to the Wall Street Journal, has worked: 90% of Salesforce workers feel their bosses are helping them be more successful, Hyder said, adding that the scoreboard pressures managers to hold one-on-ones and manage appropriately. 

Sometimes reviews or feedback can feel like throwing a shoe into a long hallway: ineffective. But Salesforces scoreboard is making a clear difference for several reasons. For one, its accessible to all employees, making it easier for them to know what manager they want to work for if theyre switching teams, the spokesperson said. It also increases transparency and holds managers to their word. 

People here do take it so seriously, the spokesperson said. It helps you be accountable all year long too, because if you are not doing right by your team, then people are [going to] know, including your boss and your bosss boss, and anyone else at the company who cares to look into it.

This doesnt mean managers with a bad score get fired; rather its a learning opportunity and a time to check in with ones team, they added.

The also attributed the success of manager effectiveness to Salesforces new management training program, which offers leadership courses meant to sharpen hybrid skills24,000 managers joined, per the Journal.

These courses come at a time when managers are feeling more stress than ever. The middleman is often given the task of bridging the gap in communication between executives and employees, often stuck implementing return-to-office plans. All this extra work has led to middle-manager burnout. 

Were hearing people say, Wed like to encourage teams to come back. You need to be clear about why theyre doing it, Jane, a customer service operations manager, told the Financial Times. Otherwise it is just putting pressure on middle managers. 

Even Salesforce noticed during the pandemic that its leadership scores started to dip as managers became more burnt-out. 

This was in direct response to what we were seeing during the pandemic, that managers and particularly middle managers were struggling the most, because they lack the resources of our most senior leaders, explained the Salesforce spokesperson. And then their jobs completely changed.

Being a middle manager was already a stressful job pre-pandemic, thanks to switching modes between teams and bosses. But the changes in social norms have led to increased anxiety and depression among people in this position, according to research from Columbia University and the University of Toronto. These days, managers feel added pressure as we return to the office and navigate new workplace dynamics. 

As Hyder told the Journal, Managers have always been important, but theyve never been this important.

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But this week, despite persistent inflation and recession predictions from Wall Street, a new trend has emerged.

U.S. gross domestic product (GDP), the most common measure of economic growth, jumped 2.6% in the third quarter, the Bureau of Economic Analysis reported on Thursday.

President Biden was quick to take a victory lap after the report came out.

For months, doomsayers have been arguing that the U.S. economy is in a recession, he tweeted. But with todays Third Quarter GDP Report, we got further evidence that our economic recovery is continuing to power forward.

But while GDP certainly recovered in the third quarter, when you break down what caused the jump, the outlook for the economy becomes far less optimistic.

The latest GDP numbers reflect a 14.4% surge in exports and a 6.9% drop in imports, which caused the U.S. trade deficit to drop dramatically, adding roughly 2.8 percentage points to GDP growth. 

The increase in exports was a result of supply chains uncoiling, and the U.S. sending record volumes of oil, petroleum products, and natural gas to Europe amid the continents energy crisis, according to Bill Adams, Comerica Banks chief economist. And the decline in imports was caused by Americans spending more on services and less on goods, while U.S. retailers pulled back on spending due to swollen inventories and recession fears.

The U.S. economy has continued to weaken but, once again, the topline GDP number is hiding some of this weakness, Raymond James Chief Economist Eugenio Aleman told Fortune. The Federal Reserve should look at this report with caution and remain mindful of the underlying trend for U.S. economic growth, which shows a weakening economy.

Aleman noted that in the first and second quarters of this year, GDP growth was pulled down by an increasing trade deficita major difference compared to this quarter. 

While GDP was a little better than expected, the underlying trend of economic activity continues to slow, Adams told Fortune. The economy will likely cool further near-term.

A few, more telling stats

While the headline GDP number shows the U.S. economy was resilient in the third quarter, some economists point to other key statistics that may give a better picture of underlying economic strength.

Real final sales to domestic purchasers, which is used to gauge demand without the impact of the trade deficit, only creeped forward by 0.1% in the third quarter. Thats down from 0.5% in the second quarter and 2.1% in the first.

Residential investment, or purchases of private residential structures and equipment, also sank 26.4% as higher interest rates continue to batter the housing market.

And finally, the personal savings rate, which represents how much disposable income consumers are able to save, dropped to just 3.3% in the quarter. Thats well below the nearly 9% historical average from between 1959 and 2022, and is even closing in on the record low of 2.2% seen in July of 2005.

Bank of Americas chief U.S. economist, Michael Gapen, said in a Thursday research note that he believes falling domestic demand, residential investment, and personal savings are a few of the examples that show the domestic economy is in a growth recessiona period of positive but below trend growth.

Starting in July, Gapen predicted that the economy would fall into a full fledged recession sometime this year, but in September he updated that outlook, arguing a mild recession wont hit until next year. And today, he wrote that Thursdays GDP report confirmed his new theory. 

Gapen now expects GDP growth to remain positive next quarter, at 0.5%, but by the end of next year he believes it will drop to negative 0.8%.

Morgan Stanleys chief U.S. economist, Ellen Zentner, said in her own Thursday research note that the third quarter will mark the peak in quarterly growth, as the cumulative effect of tighter monetary policy begins to push growth below potential.

Some good news on the inflation front

While the latest GDP report isnt nearly as strong as it looks on the surface, there was one key positive underlying trend.

The personal consumption expenditures (PCE) price index, a measure of inflation commonly used by the Federal Reserve, increased just 4.2% this quarter, compared with 7.3% last quarter. And even excluding more volatile food and energy prices, the PCE price index slowed, rising 4.5%, compared to 4.7% last quarter.

This is another sign pointing to the likelihood that the worst of inflation may be behind us, Cliff Hodge, chief investment officer for Cornerstone Wealth, told Fortune. 

But although inflationary pressures may be easing, the resilience in the U.S. economy seen in the third quarter will likely keep the Fed locked in its battle with inflationand that could be bad news for the economy in the long run.

Despite the slowdown in inflationary pressure during the quarter, the report should support the Feds plans for an additional 75 basis point hike at their November meeting, Sam Millette, fixed income strategist for Commonwealth Financial Network, a registered investment advisor broker/dealer, told Fortune. The economy showed impressive resilience during the third quarter despite Fed efforts to slow activity through tighter monetary policy.

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If you have hopes of one day applying for a car or home loan, having a positive credit history can increase your chances of approval. Secured credit cards are one tool that can help you build or rebuild your credit history. Heres what they are and how they work.

What is a secured credit card? 

A secured credit card is a type of credit card that requires the borrower to pay a deposit upfront to the issuerwhich is held as collateral in case the borrower fails to make their monthly payments. In most cases, the security deposit is equal to the amount available for the borrower to spend, also known as the credit limit. 

If lenders report your monthly payment history to the three major credit bureaus (Experian, Equifax, and Transunion), secured cards can be a useful tool for building and improving creditespecially for people with little to no credit history or those with a poor history, says Freddie Huynh, vice president of data analytics with Freedom Debt Relief, the nations largest debt negotiator with a focus on debt relief education.

If you have no credit history, your credit score is nonexistent. This may look risky to lenders and will inhibit your ability to qualify for a traditional credit card. On the other hand, having a bad credit score (300 to 579) can also impact your ability to qualify. In these cases, secured credit cards are a good option to consider because theyre easier to qualify for than an unsecured card.

Secured card vs. unsecured card

When deciding between a secured or unsecured card, checking your credit score may help you determine which route to take. Its also important to know the major differences between the two types of cards:

Qualification requirements: In general, unsecured cards have much higher requirements for approval. So if you have little to no credit history, then secured cards will be a better option for you. This is because secured cards are designed for those who are still building their credit so they have lower or no credit score requirements to qualify; and they require the applicant to put down a cash deposit as collateral in case they fail to make their payments. 

Credit limits: Since the deposit amount also determines the credit limit, secured cards often have lower credit limits than unsecured cards.

Application process and interest rates: Unsecured cards are a type of credit card that do not require a deposit at account opening, so there is higher credit risk involved for the lender. So the issuer uses information from the credit card application to determine if the borrower qualifies, such as their credit score, payment history, and income, which makes these cards more difficult to qualify for. Since this screening process is more rigorous, unsecured cards often have lower interest rates than secured cards.

What you can use them for: That said, secured cards actually work very similarly to unsecured cards after approval. Both can be used to make everyday purchases such as gasoline or groceries, up to a specified credit limit, says Huynh. And some credit card issuers also offer benefits for both secured and unsecured credit cards such as cash back or points that can be redeemed for travel or gift cards.  

Repayment and reports to the credit bureaus: At the end of the billing cycle, both types of cards give you the choice to pay in full to avoid paying additional interest chargesor you can pay down the balance over a longer time period (as long as you meet the minimum monthly payment). If you regularly make payments on time, this can have a positive influence on your credit scores. 

Paying late: But if you forget or cant make the minimum monthly payments, both secured and unsecured card issuers may charge off the account after 120 to 180 days and send it to collections, which negatively impacts your credit score. For secured cards, issuers will use your security deposit as payment to cover the charges, and you may still owe additional fees and interest payments.

How to use a secured card to build credit 

Secured credit cards are a great way to build your credit if you use them responsibly. But first, heres a breakdown of what makes up your FICO credit score:

• Payment history (35%): how youve paid your accounts over the course of your credit
• Credit utilization (30%): how much available credit you are using currently, divided by your total available credit
• Length of credit history (15%): how long your accounts have been open 
• Credit mix (10%): what kinds of credit accounts you have (e.g., auto loan, student loan, mortgage etc.)
• New credit (10%): how long ago you opened your most recent credit account 

If youre looking to build your credit with this type of credit card, you should focus on forming good financial habits such as:

Making payments on-time. Payment history accounts for 35% of your FICO credit score and is one of the strongest predictors of your ability to repay your debts. This is extremely important to financial institutions that are trying to determine whether to approve you for a line of credit. A good habit to form is spending within your means when making purchases with your credit card to ensure you can afford your monthly payment, says Huynh. If you cant afford to pay your bill in full, make sure you continue to at least pay your minimum monthly payment to avoid a late fee. 

Keeping a low credit card balance. Credit utilization accounts for 30% of your FICO credit score and plays a role in your overall credit health. Carrying a large balance on your credit card and nearly maxing out your limit may result in a drop in your overall credit score, and lenders might view you as a potential credit risk. A good rule of thumb is to keep your credit utilization ratio under 30%. 

Paying off your debt: Carrying a balance month to month can actually lower your credit score because it increases your credit utilization ratio. This is the total of all your balances divided by your total credit limit. If you have the means to pay off your credit card bill in full each month, you should do so, says Huynh. But emergencies happen, so if you have to carry a balance, at least try to make your minimum monthly payment to avoid a late paymentwhich can be reported in your credit history. 

How quickly can a secured card build credit? 

There is no magic formula for building credit fast since everyones credit history is uniquely different. If you have no credit history, applying for a credit card and being approved will begin building your credit. It will take approximately two to three months for your on-time payments to be reflected on your credit report. But, it might take nearly six months to get your first credit score. 

If you have a bad credit history, it may take longer to see a dramatic change in your credit score ranging from a few months to years, depending on if you have filed for bankruptcy, foreclosure, or default in the past. But as time passes, these negative items will get older and have less of an impact on your overall score. Eventually, these entries may fall off your credit report altogether after seven to ten years. 

Pros and cons of using a secured credit card

A secured credit card can be beneficial for many, and it can help them achieve their long-term credit goals when used properly. For the consumer who has poor or no credit history, these cards offer them an introduction into healthy financial habits that can build or rebuild their credit history so they can graduate into an unsecured credit card in just months. Opting for a secured card that reports your payment history to ideally all three of the major credit bureaus will help you build your credit score.

Regardless of whether its a secured or unsecured card, its an opportunity for the consumer to use a credit product responsibly, which gives them an opportunity to build their credit, says Huynh. 

But there is also risk involved when using any type of credit card. You have to have enough cash available to afford a security deposit to ensure the purchases made on the card. After the deposit is made, there is still a chance you may not make your monthly payments on time, and many cards charge both interest and late fees for unpaid bills. Over time, the account fees can add up and your credit score can actually decrease. 

What to consider when applying for a secured credit card

Most major credit card issuers offer secured cards, but not every issuer offers the same benefits. Before applying compare the following features to ensure it fits your credit needs:

Credit limit: The credit limit is often determined by the amount of the security deposit, which can range from a few hundred to a few thousand dollars. If you plan on making larger purchases on your credit card each month, consider looking for a card with a higher limit so you dont max out your limit and increase your credit utilization ratio.  

Annual percentage rate (APR): The APR is the yearly interest rate, stated as a percentage, that is charged by the credit card issuer to borrowers. If you fail to make your monthly payment on time, you can quickly accumulate interest fees and the higher the rate, the more you will pay in interest. 

Fees: While most secured credit cards dont charge annual fees, there are some that do. Other fees charged by the issuer could include late fees for missing your payment, foreign transaction fees when traveling outside of the U.S., balance transfer fees, cash advance fees, or returned payment fees for failing to have sufficient funds in your bank account when paying your credit card bill.

Cardholder benefits: Not all card issuers offer benefits for secured cards, but some cards may offer reward programs for things like cash back on purchases, travel, or gift cards. Some secured credit cards may also offer benefits like a 0% introductory period on purchases and balance transfersor it may offer a low introductory APR for a specified time period following the account opening. But be mindful of overspending in the hopes of gaining a reward.

Security deposit and account opening fees: If you are eager to start your credit building journey but dont have excess cash on hand, consider looking for a secured credit card with a low security deposit requirement or a card that does not assess account opening fees. 

Ultimately, when you have any type of credit, the number one rule is to make sure you use it responsibly, says Huynh. Make sure you pay it off every month, and make sure you use it within your means. Then, over time, you gradually build up your credit history and your track record of responsible payment behavior, and that provides the building blocks for a good credit score.