It’s always wise to pay attention to the needs, ideas, suggestions and communication of your employees. However, it is particularly critical to pay attention during a recovery period after coming out of a recession of the magnitude we have been experiencing. Let’s face it, we haven’t experienced this type of economic turbulence in decades. Most of us have gone through some level of expense control. Many have had to implement RIF (Reduction in Force) planning. In other words there have been many layoffs within the industry. Some companies have been forced into contingency survival planning. This creates a disconcerting atmosphere and wrecks havoc on any type of culture built around concerns for the well being of employees. Employees begin to question their security. A sense of panic and distrust can set in even within the minds of employees that have been with the company a long time. This is particularly true if pay cuts and benefit cuts have been necessary.
The Wall Street Journal reported that in February, the number of employees voluntarily quitting their job surpassed the number being fired or discharged for the first time since October 2008, according to the Bureau of Labor Statistics (BLS). Before February, the BLS had recorded more layoffs than resignations for 15 straight months, the first such streak since the bureau started tracking the data a decade ago.
This is a statistic we should all pay attention to. If we did our jobs right as leaders, we kept our best employees during the economic crisis and hopefully we only had to let go those employees that just weren’t cutting it or were employees we should have dealt with long before the recession started.
Don’t be too Slow
I have often stated to the dismay of some audiences that the customer does not come first. I believe that if you put the employee first you won’t have to worry about the customer because the employees will put the customer first. This is something we need to remind ourselves of during the recovery. Our employees have been bruised, shaken even threatened by a sense of fear for their personal security. So, as we begin to see the light at the end of the economic tunnel we must focus our attention on our employees. We must begin to restore their confidence in our leadership, our company and in themselves.
Communicate Openly and Often
This is something that is critical to success even during the best of times. It becomes even more critical during economic recovery. Hold town hall meetings and one-on-one sessions with employees to hear grievances and try to rekindle interest in the company among workers. Breakfast with the President or Communication luncheons are a terrific idea to insure that you understand the needs of your employees. Make these informal and do twice as much listening as you do talking. Ask questions and don’t be afraid of the answers. Address those questions openly and honestly.
Organizational Structure and Training
If you, like many, made the mistake of cutting training, restore those sessions or classes that were cut. If you didn’t cut training, refocus on its importance and why training is a form of employee recognition. The organization itself is a living breathing entity. If you went through a restructuring process, revisit that structure and make sure it can continue to be effective during recovery. Reevaluate resource utilization to limit individual employee burdens. Most companies come out a recession much stronger based on the decisions and changes made to endure economic turbulence. Now is the time to leverage those changes to take advantage of the recovery. But, it is not the time to forget the fact that it is the employees that ensure success.
Employee Performance
Hopefully, you have done regular employee reviews even during the recession. By regular I am not referring to annual reviews. I mean monthly or at the very least quarterly reviews. Employees want to know how they are doing. Employees need recognition and employees want to be held accountable. It bolsters their confidence. This is especially critical during the recovery period. If you haven’t done regular monthly reviews, start now. E-mail rick@ceostrategist.com if you would like a copy of a simple informal monthly review card.
Effective leaders understand that people needed concrete evidence that their leaders are concerned about their distress and are working to make things better.
However, the visible leader must present the right image. Now is the time to present an image of success, an image of hope and an image of confidence. Put your employees first and you won’t have to worry about losing any of the “Best of the Best”.
