Employees and the Economic Turmoil

Keep them focused on your business. When times are difficult, you need everyone collaborating on what it will take to keep your business in survival mode. Not an easy task I know, as these are the times that challenge business leaders. Are you contemplating cutting back on incentives or perks? If so, I would recommend that you reconsider doing so. One thing that is important during difficult times is to make sure that you meet your commitments to employees. This is a great way to keep moral up and retain your best. If you have high cost perks that may need to be reduced, try to find low-cost alternatives instead. You could also consider some "no cost" alternatives such as jeans/casual day, leaving early to take advantage of good weather or as we are approaching winter,leaving early to head-off traveling in bad weather. Or you could think about those that are less fortunate and donate time to a charity as an organzation. As a COSE member, you may have access to resources to help you and your employees better manage utility (gas) rates. You are on the right path by taking a proactive stance to help your employees and ultimatley your business.

Unfortunately, Cleveland has been one of the hardest hit areas economically with unemployment, job instability and foreclosure rates. These certainly are challenging times. People experience a great deal of stress when there is uncertainty and unpredictability in their lives. This instability also results in worry, depression and anxiety. When employees are stressed this also negatively impacts your bottomline. Stressed employees are less productive, make more errors, are more accident prone and may be using their work time to complete some personal tasks because their attention is divided.

Some suggestions that may help your employees during this difficult economic recession:

1) Let your employees know that you are committed to them and their welfare. Communicate this message clearly and often. Also deal with the realities of the economy in Cleveland.

Provide reassurances which are sincere and which you are able to keep - for instance, all employees will be on payroll through the first quarter of 2009. Keep employees posted on any good company news which would translate into job security for them (such as securing a government contract).

2) Provide temporary additional support and structure where you can. A kind gesture goes a long way and build a reserve of goodwill. Perhaps this may include some flextime or telecommuting 1 day a week because an employee is now caring for an aging parent who needs to be placed in a nursing home or needs to spend additional time out of the office due to a health condition. I knew of an individual who was concerned about her chemotherapy and returned to the office an hour after her treatments for fear of getting fired. It's far better to build a culture of trust and understanding - within reason and limits - rather than compounding an employee's already high levels of stress and anxiety.

3) Provide additional educational sessions on debt reduction, resume writing, stress management and positive self care strategies for all of your employees. This type of programming should already exist if you have an employee assistance program. If not, it would be worthwhile and cost effective to host teleseminars or trainings for employees on current timely topics to help them manage their lives, their time, their money and their careers. Education is empowerment which may help them make smarter decisions.

4) Provide additional creative options and solutions you had never considered. I know one company which has extended a line of credit to their employees. Perhaps you can arrange for some financing for employees through banks, guaranteeing loans at a lower rate, if employees are needing to obtain an extended line of credit to ride out the downturn in the market and housing bubble. Or giving employees a choice and a voice. For instance, if you need to scale back on payroll employees may temporarily opt for a 32 hour work week and reduced pay in lieu of letting people go. Others may just want their unemployment benefits. It's a good way self-selection tool to divest yourself from less committed employees and keep your engaged and productive employees.