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Are Your Employees' Experiencing a Psychological Recession?
Imagine for a moment that you asked your employees to describe your organization's work environment and their state of mind both before the recession - and today? What would they say?
Comments we frequently hear: Before the recession?
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'Quality work from me resulted in some job security'
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'The organization cared about me - and that's how I worked'
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'Before I was committed, loyal and attached to the company'
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'I did more than I was asked'
Today?
Highlights from Recent Employee Research Watson Wyatt Worldwide Inc found in their annual survey that:
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cost cutting has contributed to nearly a 25% reduction in employee engagement among top performers
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the number of employees who would recommend their company has declined by nearly 20%
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41% of employees believe that pay & benefit changes in the last year have had a negative impact on both the quality of their work and their customer service.
Kronos Inc. & Harris Interactive found that:
- in companies that have had layoffs 40% of the employees said productivity had been negatively impacted
- among those employees 66% said that morale is lower and employees are less motivated
What Happened? How Did We Get Here? A sudden, significant reduction in sales coupled with a freeze in the credit markets caused leadership teams - whose performance was being evaluated on quarterly financial results - to have to cut costs. And labor costs were their biggest opportunity resulting in:
- Layoffs and outsourcing
- An increased use of temps
- Cuts to employee benefit plans and increased employee contributions
- No wage increases and even wage reductions
Why Should You be Concerned with Low Levels of Employee Engagement?
- A vast amount of indisputable, empirical research has shown the strong correlation between managerial practices, employee engagement/performance and organizational profitability
- How employees feel about their organizations is primarily driven by their feelings about their manager; the best resource for increasing employee engagement is an employee's immediate manager
- Poor management alienates employees and has significant costs; effective, positive leadership and management is an investment that has significant returns
But - You Can Increase Employee Engagement We are Assisting Organizations in Implementing Steps Such As:
- #1 Not assuming that their managers know how to address this psychological recession
- #2 Surveying their employees to determine the degree of disengagement, where it resides and what specific employee needs are not being met - and segmenting that feedback by manager
- #3 Using these Engagement Survey results to tailor individual development plans for managers - to include providing them with practical initiatives that they can put to use to re-engage their employee teams
- #4 Training managers to be 'Engagement Coaches' and use engagement techniques - and sharing with them the benefits to them personally of having engaged and committed employees
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