Talent Management Perspectives
Published October 2008
Five Tips to Keep Employees On-Board in a Downturn
Mark Royal and Will Werhane
Engaging and retaining valued employees amid periods of economic uncertainty is essential if organizations are to maintain product and service quality and lay a foundation for future growth. But if not managed properly, difficult organizational transitions can have a significant, negative impact on employee motivation. Further, savvy talent managers recognize key contributors are the greatest flight risks, as they are likely to have opportunities elsewhere, even in a strained labor market.
Talent managers can keep talented employees on-board when the company is struggling by tapping into employees’ psyches and recognizing which signals they should be promoting to boost the organization’s morale and image, and which signals may be making the situation worse. Based on our experience conducting employee opinion surveys in leading organizations across industries, we offer the following five tips:
1) Don’t cut the dog’s tail off an inch at a time. Machiavelli said “severities should be dealt out all at once, so that their suddenness may give less offense.” His advice is as applicable in business as in politics. Don’t leave employees paralyzed, waiting for the other shoe to drop. If talent managers need to implement difficult changes, it should be done as quickly as possible so the uncertainties of the present don’t interfere with the team’s ability to focus on creating a positive future for the organization.
2) Communicate, communicate, communicate. In the midst of change, organizational communication channels often dry up. Managers, fearful of saying the wrong thing, may instead choose to say nothing at all. Yet, in times of uncertainty, employees are most in need of communication. If senior leaders do not meet this need with credible messages, gossip and rumor often fill the vacuum.
To win trust and confidence, talent managers need to help employees understand the company has a coherent strategy that will allow it to succeed in the current business environment, that both the company as a whole and its individual divisions are making progress relative to strategic objectives and that all employees have a role to play in helping the organization carry out its plans.
3) Stand united on messaging. The path of least resistance for many managers in times of transition may be to side with skeptical employees: “If it were up to me, we wouldn’t be making these changes. But my hands are tied.” But if middle managers and supervisors signal to employees through their words or actions that they lack faith in organizational leaders, employees’ trust will decline rapidly. It is critical leaders make sure that managers at all levels are well-aligned with planned directions and understand the importance of reinforcing key messages with their teams.
4) Be transparent and personal. As employees are asked to make sacrifices for the organization, it is important they have a sense that decisions are being made rationally and equitably, and that the changes will result in increased organizational effectiveness and the eventual betterment of the work environment. While memos and e-mail messages can be effective mechanisms for reaching large numbers of employees quickly, in times of transition face-to-face communications are essential. In-person meetings with employees enable leaders to share key messages in a personal way.
Equally important, they permit leaders to enter into a two-way dialogue with employees regarding organizational plans and their implications for individuals. The personal touch is critical because effectively managing change internally is a selling proposition. Given that the same change initiative can be expected to impact different employees in different ways, building support for change means engaging with the distinctive interests of different employee groups.
5) Sweat the small stuff. In difficult economic times, leaders may be tempted to eliminate every nonessential expense. But in making these cuts, it is important leaders weigh potential fiscal gains against the negative impacts on employee morale. The annual company picnic or holiday party, for instance, represents not only financial outlays but also important opportunities to reinforce that the organization values employee contributions. In an environment in which leaders are asking their teams to do more with fewer resources, maintaining high levels of employee engagement is critical. A little discretionary spending may be a wise investment if it promotes greater discretionary effort from employees.
When it comes to managing through tough times, people really are the most important asset. In dealing with them, be clear, be fair and be consistent. If talent managers do this employees will stay focused on moving ahead — rather than movingMark Royal is a senior consultant and Will Werhane is the global managing director for Hay Group Insight, Hay Group’s employee and customer research division.
