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Employee Relationships: Workplace Communications Critical in Good Times and Bad
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The media publications and broadcasts, the Internet and virtually every pundit or blogger worldwide are reporting the scope of the current collapse of the financial infrastructure. The collapse is being felt in nearly every segment of every economy in the developed world.
This is the beginning, not the end. Many employers already were feeling the pinch with higher energy and transportation costs. Now, with capital very hard to come by, many companies will have to forestall growth plans. Watch the indices of consumer and industrial purchasing sentiment. The U.S. economy lost 159,000 jobs in September and virtually every day the news reports another industry sector laying-off workers: automobile manufacturers, airlines, financial services, etc. The current projection is that unemployment will hit 7.5 percent sometime in 2009, and little relief is expected until 2010.
What should an employer or manager do, knowing the pressures on cost reduction are likely to build in the face of declining revenues? Doing nothing is not an option. Every employee at every level of the organization is aware and worried. The best advice is to have a plan, protect key talent and communicate.
Rule One. The plan should detail the orderly contraction of business segments based on operational benchmarks. Work load/order rate, receivables outstanding and financial well being will be factored into defining workforce requirements. Be detailed on which critical skills are required and make sure that individuals possessing those skills are advised that the organization recognizes the current business climate but will do everything possible to retain their services.
What about the balance of the organization?
Rule Two. Every employee needs information. They want to know that the Company is AWARE, has established or is working on a plan and, if worst comes to worst, is developing a support package to soften the effects should reductions of force be required. This package should include wage and benefit continuation as well as career transition support. Our advice is that this communication should be a face-to-face, group-assembly type of presentation. Use instruments, newsletters and department meetings to supplement. Consider establishing a telephone hot line.
Be aware as the tension and anxiety rise and as the business falters, it’s important to “walk the talk.” Do not spend money lavishly on resort retreats or, as AIG did, spend $440,000 of taxpayers’ bailout money to attend a spa in Southern California.
Be frugal! Look at projects. Can they be postponed? Should temporary resources be let go? Be sensitive to the apprehension that exists in the workforce.
The bottom line is to show your team you care about them and their welfare. Control the rumor mill by communicating factually and frequently. How you treat and communicate with your workforce in these times will be the subject of employee discussions for generations to come.
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Daniel G. DePuydt, J.D., is president of OI Partners - Triumph Consulting (Iowa). He has held executive-level HR positions for several Fortune 1000 firms in the metals, aerospace and office furniture industries. He can be reached at (563) 355-3313 or ddepuydt@oipartners.net.