During the best of times, we all tell our employees, our clients, and our business partners that “our people are our best asset”—and we really mean it. We know that the most successful firms in the world are those who hire top talent and maintain a culture that utilizes that talent to the fullest. During this recessionary period, holding on to and investing in our key employees is more critical than ever before.
Over the past decade, we have experienced an unprecedented period of “good times.”You might argue that we hit a bump in the road during 2001, but overall, we have been blessed with a very long stretch of economic prosperity. During these times, we learned a great deal about how to become an “employer of choice,” how to screen and select the “right”employees, how to properly “onboard” an employee into our organizations to ensure their success, how to retain and develop top talent, how to recruit top Gen X’ers, how to manage and excite the Gen Y’ers, and how to best utilize the fastest growing talent pool—our seniors.
Millions of dollars have been made by authors and trainers and millions have been spent by corporations to find the magic potion—all in an effort to gain, keep, and best utilize top talent.
So here we are…in one of the toughest economic times that most of us have ever experienced. Yet, our new laser focus on the bottom line does not have to negate all that we have learned about taking care of
our employees. Most businesses will do everything in their power to prevent a layoff. We see many
companies choose to implement a reduction in hours or temporary lay off rather than a permanent
reduction in force. This alternative makes particularly good sense if you feel that you may need to replace
staff within three to six months and have invested a great deal of time and money in your employees’ training.
So often, we see firms toggle between layoffs and hiring binges. But have you ever considered the cost of this type of decision making? Long and short term costs include training and recruiting dollars, reputation, morale, intellectual capital, and client service disruption, to name a few. Time Magazine recently reported a study demonstrating that reducing staff to a four-day work week led to unexpected rewards in terms of higher morale, less absenteeism, and lower turnover.
If a permanent layoff is the best choice for your firm, it is imperative to make communication with remaining employees a priority. Research has shown that “survivors” (the very marketable employees that you do not want to lose) suffer due to a layoff of their coworkers. Thus, it is critical for management to communicate openly and honestly with the remaining employees, so they understand the business conditions that led to the layoff decision and your compassion for those who were affected.
If your firm values the survivors and wants to hold on to them, there is no better time to let them know. Let the surviving staff members know that you will continue to invest in their careers and that you plan to come out of the downturn in an even stronger position. (Legal note: Do not make promises of employment that could be later construed as an employment contract and violate the “at will” status of the relationship.)
Though common sense would cause an employer to believe that survivors are happy to have their job and feel loyal to the company that has protected them, employees are often surprisingly loyal to coworkers. Survivors feel grief for their coworkers and often feel animosity towards the employer for their actions.
Rebuilding morale and loyalty takes time, yet is so important to maintaining your key employees. The truth is that your best employees are also the most attractive to your competition. Oftentimes, companies will find that a round of involuntary layoffs will eventually be followed by a wave of employees who decide to jump ship to higher ground. Morale may not seem like a hard-driving business concept; however, emotions play a large role when an employee considers a job change.
Those responsible for human resources in their firms have the opportunity to play a vital role during economic uncertainty. Communicating transparently, often, and with a consistent message at all levels is key to maintaining the morale of your employees.
When has it ever been more important to protect our most valuable assets – our employees? After all, good times are surely around the next “quarter”!
