We know employee engagement contributes positively to many (most?) factors in a business. Ironic, then, that employee engagement suffers when times get tough. Or is it?
Today we'll take a somewhat dreary view of what these tough times mean to employee engagement. But, hey, it always pays to be aware of the problem, even the potential problem. Hard to reach the pinnacle without previewing the pitfalls.
Let's take a look at some views of what goes wrong when bad news threatens...
Serious economic problems at financial institutions create morale, retention, and productivity issues for employees who await layoffs or struggle in the wake of layoffs. (www.Careerbuilder.com, date unavailable)
I suggest that's not just at financial institutions. I'm betting hospitals, hotels, automotive parts manufacturers, and corner stores experience the same human reactions. Why? Because they employee humans. When the sky gets dark, for at least a few moments we are distracted and wonder where we left our umbrella. When it's a question of one's work, one's company, one's job security that same self-protective reaction takes greater dimensions.
And instead of everyone assessing the somber economic situation calmly, the talk among people often feeds upon itself, leading to even more panic......focusing too heavily on those facts can cripple existing staff to the point where their work productivity is negatively impacted. (www.Livingstonbuzz.com, 10/10/2008)
I/O/W humans act human and talk about the bad; thereby making it worse. Sometimes. One person's fear fuels another's fear.
Employee-assistance providers say they are fielding more requests from managers seeking help with uneasy workers. Callers hail from companies of all sizes and sectors, though many are in financial services. Managers' concerns range from motivating distracted workers and curbing lateness to allaying rumors, especially about possible job cuts. (www.online.wsj.com, 10/06/2008)
Spillover is when the effects of one situation flow into adjacent situations. Spillup is spillover that defies the law of gravity. The negative effects of bad news spillup to the managers. The manager not only faces managing through/against tough times (market decline, customer loss, staff reductions, expense cuts...). She also confronts additional tension and pressure from her existing employees. Their concerns spillup to her.
It's clear that Wal-Mart is struggling these days. The once-vaunted retailer is facing slowing sales and a stagnant stock price (BusinessWeek, 4/30/07) at the same time its reputation has been battered for its workplace practices......The most significant finding is what appears to be an enormous problem with customer service. As the experience with the cashier in Uniondale illustrates, many of Wal-Mart's workers feel outright hostility toward the company, and, by extension, they often treat customers with indifference or worse. (www.businessweek.com, 10/02/2007)
So the tough times problem does not come from external situation(s) alone. Sometimes things go wrong internally, and then as well the employees' engagement takes a downward turn.
Whether events in the national/global economy slam-bang a business's confidence or the business's own state of affairs take a dismal turn, employee engagement connects directly to confidence. The staff member who doubts what tomorrow may bring may experience less ability and willingness to put forth full engagement efforts.
So...tomorrow we'll look at the views and suggestions from people in the know.
Thursday, 11/13, I'll offer a series of very specific tips to help you maintain--even increase--engagement when the going gets tough!
Photo Source: http://www.flickr.com/photos/mmartimo/270369148/
Excellent post, Tim. As you rightly reiterate, the latest research and industry experts are all saying people’s motivation (and performance) plummet during a recession as they are (1) fearful for their jobs, (2) angry about layoffs of friends and assuming their work, (3) consumed with rumors about the company’s future.
A recessionary economy is precisely when companies need to get the most productivity out of fewer employees, however. Annual bonuses and even pay raises are increasingly not an option this year. So, how do you address these concerns?
Strategic employee recognition reaffirms people in the value of their contributions, acknowledges the additional work and effort they are being asked to perform, and allays rumors through frequently updated executive messages. Done correctly, employees also understand how their specific efforts help the company achieve its strategic goals. All of this combines to increase morale and productivity.
http://globoforce.blogspot.com
Posted by: Derek Irvine | November 26, 2008 at 10:43 AM