Keeping Employees Upbeat When The Economy Is Down

Keeping Employees Upbeat When The Economy Is Down

When times are good, it is easy to promote hard-working employees, offer unique perks and convey an overall fun, productive and engaging atmosphere at work.

But when times are tough, as they are these days, everything shifts. News of decreased sales fuels backroom gossip about potential layoffs. Poor stock market performance prompts managers to cut already thinning budgets and ask their employees to do more with less. And when the company starts to cut perks like free coffee, it is enough to make even loyal employees start accepting calls from recruiters. Because if the free coffee goes, what's next?

In a world where change is really the only constant, employers and employees alike have to buckle up for the bumpy ride ahead. Whereas it is easy to coast during peak periods of success, the true test of great managers is how they perform during tough times. Taking an individualized approach to communication, career development and management is the key to harnessing employees' energy when their productivity is more crucial than ever.

Communication is key
How much information is too much? When the news isn't all good, managers might be tempted to keep it to themselves. But this may only lead to more speculation and negative gossip.

Instead, managers should maintain a frank, tell-it-like-it-is communication style when providing information about the company's overall performance. Communications should provide credible evidence of better times ahead and emphasize the employees' important role in driving new growth. When employees know as much as management does about the company's financial situation and business plans, they feel a sense of mutual partnership.

Communication tips
The following tips will help you as you communicate with your employees:

· Customize messages for each audience group, including senior leaders, front-line employees and customers.

· Some questions you can answer easily; others you cannot. But you must listen and say that you will share what you know when you know it and when you can share it.

· Person-to-person communication is more important than ever. Leaders should visit employees on their own turf and conduct more frequent small-group and individual meetings to provide continued reassurance and coaching.

Rules of engagement
It is easier to foster high levels of employee engagement when goals are being achieved and record profits are being made. Research shows that engaged employees deliver better customer service, which in turn drives loyalty, sales and profits.

But if employees are spending more time worrying about their company's viability than providing excellent customer service, engagement is sure to take a dive. "Disengaged employees do not feel a commitment or connection to their organization," said Diane Cothran, employment engagement leader at Ceridian. "Success of the organization depends on every employee being connected and willing to go above and beyond to see that the organization succeeds."

To help employees remain positive, Cothran suggests that managers keep lines of communication open and encourage employees to be part of the solution. "Gather employee feedback to understand what you do well and what you need to do to be a better company. Employee perceptions and priorities for improving the work environment will lead to ways you can maximize your company focus on the customer and improve your organizational results," Cothran said.

Engaging employees, however, might not be enough to sustain maximum levels of individual and team effectiveness over time. According to an April 2008 story in Human Resources Executive Online, frustrated employees may represent 20 percent or more of the total workforce. Their frustration often stems from feeling as if their skills and abilities are not being leveraged to their full advantage.

That frustration can soon lead to energy-sapping negativity in the workplace. According to the Bureau of Labor Statistics, U.S. companies lose about $3 billion a year to the effects of workplace negativity. This can be one of the many fallouts attributed to poor customer service, low morale among other employees, poor retention of top talent and decreasing sales.

According to Managing Workplace Negativity by Gary S. Topchik, negativity often occurs when people are impacted by decisions and issues that are out of their control. Corporate downsizing, understaffing and budget restrictions are all examples of things that can lead to frustration and negativity.

While employers cannot do much about the economic forecast, they can work to improve employee communication, ask for plenty of feedback and provide the support and resources employees need to do their jobs. And a little pat on the back doesn't hurt either.

Morale-boosting tips
As a manager:

· Gain the support and trust of senior managers. Their opinions will trickle down to employees and become apparent to vendors, customers and other outside stakeholders.

· Emphasize the value of your employees' proven skills and the contributions they make. But take care not to imply that their employment is guaranteed.

· Reassign roles according to individuals' talents and backgrounds. Companies must move new responsibilities to the employees best qualified to handle them -- not necessarily to those next in line.

· Get to know what motivates each of your employees and customize incentives according to their needs.

Prepare for the long term
During this downward cycle, it is a great time to prepare for when the cyclical economy will inevitably turn around. Take time to identify, groom and provide incentives to those "survivors" who show promise. Identifying performers now will help you grow the business when the economic climate improves.

"Great leaders give their people reasons to believe in themselves and their teams," Cothran said. "During this economic downturn, it's more essential than ever for employers to model their commitment to the organization's overall success and be prepared for when things improve in the future."