Engaging Managers Is Key to Weathering the Recession, Research Finds

With unemployment at a 10-year high, this economy has caused even the best companies to include separations as a necessary cost-reduction strategy. They are working hard to treat those who are laid off humanely, as well as to equip the ìsurvivorsî with means of coping and remaining valued contributors to the companyís success.

Based on extensive research of the past and current recession, Sirota Survey Intelligence (www.sirota.com) has concluded that the maintenance of leader and front-line manager engagement is critical to the morale, innovation and effectiveness of employees. ìTheir ëlynch-piní role requires constant monitoring during these turbulent times,î says Nick Starritt Managing Director, Sirota Europe, specialists in attitude research. For example:

ï When managers become disengaged, their employees are:

o Over three times as likely to be disengaged
o 12% less likely to stay (especially when the recovery occurs)
o 13% less likely to be innovative
o 33% more likely to be frustrated with the companyís systems and processes

ï When managers become stressed, their employees are:

o 7% less likely to feel valued (vs. employees working for unstressed managers)
o 6% less likely to feel recognized
o 6% less likely to feel their managers are ìwalking-their-talkî

Sirotaís data from the other economic disruption of this Millennium – caused by the impact of 9/11 on the economies of the USA and other countries - shows that employee attitudes are at great risk during these times. For example, during the period following 9/11, layoff survivors felt less valued, with positive attitudes declining from 67% to 44% (innovation, teamwork, advancement and job security also declined). ìWe are already seeing the signs of decaying morale during the current downturn,î offered Starritt. ìFor example, employee confidence in the future of their companies has declined since the beginning of 2008.î

Management can take the following actions, in six broad areas, to help mitigate the after-effects of job separations on employees who remain.

1. Communicate, Communicate, Communicate – ìMost employees want to know what will be happening to them, especially whether they will they be laid off. Secrecy or lack of transparency will just add to their sense of powerlessness. Do not delay in confirming whether there will be job cuts. Communicate why workforce reductions are necessary. Employees will understand if the workforce needs to be reduced – provided they see this as a last resort, not a ìknee-jerkî reactionî said Starritt.

2. Allow for an emotional response – ìAnger, concern, insecurity, and survivor guilt are all perfectly natural emotions for employees to feel,î said Starritt. ìIt is crucial for managers to spend time assuring employees that it is OK to feel this way. Otherwise, employees may release these feelings in non-productive ways or situations.î

3. Support the Front-Line Manager Population – ìThe front-line manager population is likely to feel the brunt of the pressure – from worried employees below them and harried managers above. Front-line employees believe that their managers are ëin the knowí, but in reality they are quite far down the organisation with limited managerial experience and skills,î according to Starritt. ìAmong the many ways organisations can help this sometimes beleaguered group is through mentoring programmes – matching managers who are weak in certain areas with managers with demonstrated strengths in those areas.î

4. Proactively address the negative effects of less staff for the same work – Increased workloads for employees who survive layoffs are inevitable. Often this has the added effect of negatively affecting teamwork during a time when all have to work together to rethink how tasks are done. But managers can choose to involve their employees in the search for solutions, thus addressing both teamwork and efficiency simultaneously,î said Starritt. ìFor example, gain-sharing and other employee involvement teams offer opportunities for employees to help improve work processes and teamwork while benefitting economically as well.î

5. Demonstrate continuing long-term interest in the careers of the survivors – ìThe period immediately following separations is a good time to introduce ëstretch assignmentsí – those that will expand the skills of survivors and demonstrate your confidence in them. That may also reveal previously unrecognised strengths and capabilities among the individuals selected – and advance their long term career prospects. It may seem counter-intuitive, but this is also a good time to increase the frequency of discussions about career-related topics, including possible advancement opportunities.î

6. Empirically determine how things are going – donít just guess. ìManagement-by-facts is the best way to gauge how employees are performing after layoffs. CEOs still must report to their external constituencies, including investors, boards of directors, media, and communities in which they do business. Periodic, systematic, employee attitude assessments enable management to ascertain the impact of their actions on the day-to-day operations of the company. Employee attitude surveys also demonstrate to workers that they are still an important asset. Even if budgets have been cut, an efficiently designed employee survey process can provide critical information for management,î Starritt said.