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October 2008 |
Vol 1, Issue 4 |
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Greetings! |
 Welcome to your latest Balance at Work newsletter. It is our intention to bring you relevant, practical information that you can use right now. We rely on your questions and feedback to help us do just that!
We have had many queries lately about the impact of the WFC on how businesses attract, retain, develop and manage people, especially in the financial services industry. We present two articles in this newsletter that will help you prosper in the current context.
Briefly, from our specialist experience, research and observations, we can say with confidence that
- Skill shortages will continue.
- The best and brightest employees are usually the first to start looking for alternative employment in tough times.
- There are massive opportunities for those businesses that know how to apply best practice people management to attract and retain the best talent right now.
Don't let these opportunities pass you by. If you're serious about saving time, money and effort while retaining and attracting top talent, read on! |
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1300 785 150
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How to make the most of change |
With the global financial crisis in full swing, many businesses will experience periods of rapid change, downsizing and restructuring during the next few months. The way you present the changes to your employees will have a big impact on levels of employee loyalty, morale and productivity during the implementation period. There are several ways you can help employees deal with change to reduce productivity losses and the impact on employee morale. Most people hate change It has been said that the only people who like change are wet babies. Change happens rapidly in this world, but people are often slower to react to the changes. Change is hard to deal with because it involves death of the familiar and takes us out of our comfort zone. Change will violate cherished group norms, routines and may increase anxiety levels in some employees. People can become anxious about having to work harder, learn new skills or work methods or may fear the loss of their job. Change creates uncertainty which can cause employees to feel anger, bewilderment, confusion and stress. This in turn can affect employee morale, productivity and even loyalty to the business. The first action you should take is to consider how individual employees are likely to react to the change. This could have an effect on how best to announce the change. For example, some individuals may react very badly, and announcing the change in a group situation can lead to some more outspoken employees infecting others with their negativity about the change. Announce the Change You may decide that giving individual employees the information in a one on one meeting will enable better employee buy-in to the change. Sometimes, if the leaders of different groups seem to accept the change, it is easier for the rest of the group to accept the change. Giving selected individuals advance warning before the announcement to the whole work team, gives those employees a chance to assimilate their thoughts on the change and to promote positive aspects of the change. Good communication in the announcement of the change is the key to success and increasing employee commitment to the change. Explain the Change Employees are more likely to accept a change if they are respected enough to be given full explanations as to why the change has to happen. Explain the change fully so that everyone is clear about what is changing, and what is not changing. Give individuals a chance to ask questions about how the change will precisely affect them and how you will help them to prepare for it. Give some balance to change by pointing out the advantages. Because change invokes fear on some level, people will tend to focus on the negative impact of the change and will ignore potential benefits. It is your job to allow the benefits to shine through too. Communicate During Transition Once individuals have said goodbye to the old, but have not yet welcomed in the new, there is a time of transition as the change becomes fully implemented. During this time, your employees may experience a sense of unreality, emptiness and confusion. Productivity may suffer at this time, as people go through the motions but work without energy and diligence. Communication about the change and supporting your employees with information will help make the transition as short as possible. Keep sharing the positive aspects of the change. Reduce Resistance to Change The following suggestions will help you to reduce the resistance to change in your team:
- Explain the organisation's values, vision and strategy and show how the change is linked to the future of the company.
- Detail the change clearly in terms of goals, performance indicators, standards, expected behaviours and company culture.
- Explain how they will benefit from a successful change.
- Involve your team in designing, planning and implementing the change as much as possible. Engage individuals with the process of the change to encourage employee buy in.
- Commit the necessary resources to the change implementation including budget, time, communication and training.
- Build a critical mass of supporters in key roles within the team.
- Provide early signs of visible progress in implementing the change so that employees will be encouraged during the transition stages. (This is probably the most important tip of all!)
- Look after your employees and help them through the discomfort zone between where you are and where you need to be as an organisation.
- Publicise successes and reward the supporters of the change.
- Keep communicating and listening to your employees during this difficult period. Knowing you have taken the time to listen can help them adjust to the change.
New Beginning As the change becomes fully implemented, and resistance to the change is diminished, hope emerges. At this stage of the change, employees will adopt new goals and start planning for the future. All of the energy previously spent in resisting the change will now be used to deal with it constructively. When introducing change to an organisation, be prepared. You can assist employees to accept the change more quickly by ensuring open communication, support and training during the transition phase of the change implementation. Spending time and resources on implementing a change properly will prevent losses in employee morale, loyalty and productivity.
For practical people management advice and tools, call us at Balance at Work on +612 9233 2293 or 1800 785 150, email advice@balanceatwork.com.au or visit our website www.balanceatwork.com.au. We look forward to assisting you! |
Recruitment in a slowing economy |
When an economy slows, the job market can soften as businesses cut overheads by shedding staff, or as talented or ambitious staff sense that the ship is listing in heavy seas, and decide to swim to a safer berth. In the instance where employers are the ones who make the cut, the first employees to be let go are likely to be the low-performers, and not the high calibre staff that you need to top-grade your team.
However, the most capable staff will often also be among the most intelligent, and among the first to realise that the business that has been paying their mortgage up until now is looking decidedly wan! So it's they who go looking for a better-run business in which to work.
Would you appear to be one of the better-run businesses if such talent were to be looking?
Constant Recruitment
I'm noticing a distinct trend emerging among my coaching clients of late: Because they get into the almost continual process of top-grading staff - constantly growing their best players, grading out their weaker performers and recruiting new, talented replacements - these clients are now in the habit of advertising positions almost constantly - sometimes even when they don't have a current vacancy. As one of them put it recently, "It 's worthwhile just trolling the labour market to see who turns up. It's often easier for me to create the work for talent than to find the talent when I've got the work!" It can be a chicken-and-egg puzzle, sometimes: If you find the right person with a strong fit to your team, you then often identify a chance to harness their talent to an opportunity you have (consciously or, more often, unconsciously) left dormant up until their advent.
Serious Business I'm also noticing that my clients are putting more time and thought into the interview and selection process these days. That's possibly because, in proactively scanning for talent before they need it, they are no longer constrained to make quick decisions to "fill gaps" but have become more focused on developing a good process for achieving a "perfect fit". (Mind you, their thoroughness could also be a reflection of the great weight that their Coach places on recruiting only "the right people" onto their bus.) However, more thorough and process-driven interviewing may also be a response to their growing appreciation of the real cost of allowing the wrong people onto the bus in the first place, regardless of how brief their sojourn may be. At a presentation this week, a recruitment specialist was sharing with me her opinion that picking the wrong person can cost around $50,000 to $80,000 in lost wages, training, productivity, rework and disruption to business; so there's 80,000 reasons to look to creating some system and surety to your recruitment process for starters.
Marry in Haste, Repent at Leisure Employing a new team member has a lot of parallels with marriage. It could be said that the best of marriages are more likely to occur where the parties take some time to get to know each other, confirm a cultural fit and identify common values before they commit. Given that, upon recruitment, you will probably "live together" with a new workmate for more hours in the day than you will with your "significant other" or your children, there appears to be strong grounds for improving the initial interview and selection process. In a recent coaching session with a Client who is seeking an IT Manager we worked up a simple checklist so that he had some structure in the process and guidance to ask the right questions, gather the right information, and observe the behaviour of the candidates as they responded.
If you are in the marketplace for new staff now - or think you will be in the near future - ask yourself whether, given what is at stake, you would gain a benefit from putting more time into developing your own interview and assessment procedures. After all, consider the prize: A skilled and talented new staff member, who has totally bought into your Vision for the business, accepts and aligns with your Values and can't wait to put a shoulder to the wheel and start contributing to the achievement of your Goals!
This article is reproduced with the kind permission of one of our expert trainers, Jorgen Christensen. To contact Jorgen, click here or call 0400 389 356. |
Other news |
- Last month, Susan delivered the 'people' modules of the brand new Diploma of Financial Practice Management at AIFA. AIFA joined forces with The Encore Group to develop the Diploma - the first nationally recognised qualification customised to the needs of financial planning practices in Australia. For more information on Practice Management training call AIFA on 1300 785 775 or click here.
- Practice Management is an area of growing interest among our financial services industry clients. As markets change, there appears to be a more concentrated focus on how businesses really deliver on their client value proposition. Our Optimal Performance Training Menu is just one way we can help you confidently deliver to your clients' expectations.
- The most unusual client we've had this year is PawPaws Urban Retreat, a boutique hotel and spa for dogs. Like any business, it was important for them to find the right manager to oversee and coordinate everything involved in preparing to open on 1 December. We helped carry out the interviews and talent assessments that resulted in selecting the 'perfect' person.
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As I write this, ABC Learning has gone into receivership. For a great summary of the lessons that all entrepreneurs can learn from this collapse, read this article.
For slightly more inspirational reading, I recommend 'One Red Paperclip' by Kyle MacDonald. Many will know the story already - reading the book explains how the whole amazing journey unfolded.
Look out for your next newsletter, with seasonal special offers, in December. (And if you have a burning question you'd like covered, please let us know!) In the meantime, be sure to check out the range of regularly updated free articles available on our website.
Warm regards
Susan Rochester
WFC = World Financial Crisis. (Please note we have been reliably informed that the sun will continue to operate as normal during the WFC. Sunrise times will proceed as published in the daily weather pages.) Return to introduction. |
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