How to keep employee morale during complicated periods?

1. How to keep employee morale during complicated periods? For recovering we need even more motivation and commitment ... Milvi Tepp 25.veebruar 2010

2. Some words about myself ... • My background is in psychology • Tartu University • PhD: Moscow University • My work life can be described as ABC • Academic work in Tallinn University of Technology • Business experience: HR manager: Hotel Olümpia, Reval Hotel Group, EMT • Consulting and training in HR management, Leadership, organization culture .... Milvi Tepp 25.veebruar 2010

3. Human beings are complicated

4. People are fundamentally different from capital and technology • Human beings have soul: we are not programmed to deliver in a rational and predetermined manner • Human beings are searching for meaning: we are not simply passive recipients of all life offers us • Human beings operate in time: the past (memory) and the future (goals and hopes) is continuously with us Milvi Tepp 25.veebruar 2010

5. It means, that ... In managing people we always have to deal with emotions, meanings, memories and hopes Milvi Tepp 25.veebruar 2010

6. Every time, we sign employment contract .... ...... We also “sign” psychological contract Milvi Tepp 25.veebruar 2010

7. Psychological contract A set of beliefs about what each party (employer and employee) is entitled to recieve, and obligated to give, in exchange for another party`s contribution Milvi Tepp 25.veebruar 2010

8. Psychological contracts are formed on the basis of trust Milvi Tepp 25.veebruar 2010

9. As employer we expect that • Employee is loyal • Employee is using his kowledge in the best way to reach the goals • Employee is dedicated to his duties and work hard • Employee is honest • Employee will work extra hours when required • Employee is flexible, for example by taking on a colleague`s work • ..... And so on Milvi Tepp 25.veebruar 2010

10. As employee, we expect that • We get paid according to our performance • We are treated with respect • We have opportunities for promotion • We get recognition for new ideas, good work • We can be sure in job security, if we fulfil our obligations and duties • We can do our work in pleasant and safe working environment • .... And so on Milvi Tepp 25.veebruar 2010

11. During the process of cost-cutting, painful changes, downsizing, lay-offs and so on many of expectations are not fulfilled Milvi Tepp 25.veebruar 2010

12. What do people feel and think in this kind of situation? • Some typical feelings • Insecurity • Uncertainty • Injustice • Fear • Anger • Anxiety • Disillusionment • .... And other negative feeligs Milvi Tepp 25.veebruar 2010

13. Most of the managers understand those feelings and consider them to be “normal” feelings of people, who were laid off But People who kept their jobs should be satisfied, maybe even happy ... Milvi Tepp 25.veebruar 2010

14. Unfortunately this intrepretation could very often be wrong The remaining employees are seldom thought of as victims, but in a very real sense they are Milvi Tepp 25.veebruar 2010

15. Those who survived layoffs are not happy ..... Milvi Tepp 25.veebruar 2010

16. Survivor syndrome A set of attitudes, feelings and perceptions that occur in employees who remain in organization following involuntary employee reductions Milvi Tepp 25.veebruar 2010

17. Survivor syndrome While those out of work know they must find another job, there ise continuing uncertainty for those who remain Milvi Tepp 25.veebruar 2010

18. Survivor syndrome It is hard to trust management promises if previously those promises have not been kept: ... How many times management said that this is the last layoff ...... but ... When is my turn coming? Am I next? Milvi Tepp 25.veebruar 2010

19. Survivor syndrome Employees can often feel they betray their former friends and colleagues by staying in work; they feel guilty like backstabbing them; In some cases they will be taking over roles and responsibilities of people they respected Milvi Tepp 25.veebruar 2010

20. Survivor syndrome Usually those who are staying have to do the work previously done by those who were laid off; And usually they have to do this for the same or even smaller money; Can I? Do I have skills and enough power? Milvi Tepp 25.veebruar 2010

21. Employees who remain often suffer mixed emotions grateful to have survived Struggling to feel loyal and committed to an organization that they now perceive to be heartless The commercial realities matter little to employees who has fallen out of love with the company they once felt so proud Milvi Tepp 25.veebruar 2010

22. Some specific concerns survivors have • How much should I worry about the possibility of future layoffs? • How does my job compare to the one that I had before? • What is my future here? • What are reactions of my fellow survivors? Milvi Tepp 25.veebruar 2010

23. Are employees with such feelings productive and motivated to strive for new goals? Milvi Tepp 25.veebruar 2010

24. The redundancies and other cost-reduction measures, often linked to a restructuring of operations, can only work if those remaining raise their game Milvi Tepp 25.veebruar 2010

25. We have to think about the price of cost cutting Milvi Tepp 25.veebruar 2010

26. What does research show? • Survey of 116 employers, workforce of almost 400000 people (UK, spring 2009) • 67% experienced lower morale of employees • 53% reduced motivation • 65% reported increased stress levels among remaining employees – higher rates of sicness absence for example • 17% mentioned problems with retension Milvi Tepp 25.veebruar 2010

27. What does research show? • Survey of 3000 employees (UK, summer 2009) • 34% admitted they would switch jobs within the next year – in ideal world • 70% said that redundancies have damaged their morale • 51% feel that they are under greater pressure as a result of the jobs cuts • 27% said that they are less motivated Milvi Tepp 25.veebruar 2010

28. What does research show? • Study of 5000 employees, who remained after layoff (US, autumn 2008) • 75% said that their own productivity declined since watching their colleagues go • 70% said that the quality of their company`s product or service has dropped Milvi Tepp 25.veebruar 2010

29. The most important task: we have to rebuild trust Milvi Tepp 25.veebruar 2010

30. Trust is emotional category Milvi Tepp 25.veebruar 2010

31. Managing emotions and emotional situations needs very rational and calculated approach: we have to know and understand, why and what and how to do Milvi Tepp 25.veebruar 2010

32. What should we do? Milvi Tepp 25.veebruar 2010

33. The first and most practical thing: we have to acknowledge that survivor syndrome exists in our company ... Only then we can go on Milvi Tepp 25.veebruar 2010

34. The overall approach We have to be realistic and honest with remaining employees • What is happening in business and what do You expect of them • Communication is critical • Avoid rhetorics and empty slogans Milvi Tepp 25.veebruar 2010

35. Train Your managers managers are under the double-pressure they need some training how to manage their own emotions and how to manage emotions of theri employees they need new skills to be successful in new situation Trust between the managers of different levels is crusial Milvi Tepp 25.veebruar 2010

36. Analyze the workload and do rightsizing survivors have do their own jobs and significant portions of the work, previously done by those, who were laid off work analysis is needed “rebuilding” the positions; sometimes new names of positions will help Milvi Tepp 25.veebruar 2010

37. Give them opportunity to play active role in shaping the post-lay-off work environment: get everyone involved ask inputs rewrd for suggestions make them feel that they are needed and their ideas are important Milvi Tepp 25.veebruar 2010

38. Specify the new opportunities and make sure people understand them have survivors work at “achievable” goals and tasks: set realistic short term goals Reward for new behavior make new career paths explicit Milvi Tepp 25.veebruar 2010

39. Review training needs new duties and new roles need different skills Invest in coaching, mentoring training is always also a sign yhat people are important training helps to to be more confident in possible new roles Milvi Tepp 25.veebruar 2010

40. Reward specific achievements positive feedback reinforces striving on rewrds for achievements, even small ones, are signals that we are moving on Rewrding achiements we create new role models Milvi Tepp 25.veebruar 2010

41. Value family and personal time people want to live their personal lives Pushing in stressful times definitely is not the best strategy for better productivity Milvi Tepp 25.veebruar 2010

42. Focus on fun – not cash focusing constantly on money don`t let us see the ways to get the money Milvi Tepp 25.veebruar 2010

43. Team approach is important top management and managers from all levels have to feel and act like one team employees have to get the same signals from every manager Milvi Tepp 25.veebruar 2010

44. There is no quick fix Even the recommendations are implemented properly, managers should prepare them for an adjustment period measured more appropriately in terms of years than in months or weeks ... Milvi Tepp 25.veebruar 2010

45. We have to start from small things Discussion in teams 1. Name one thing You as a manager think You should do and will do to keep moral during hard times 2. Name one thing You as manager should stop doing Milvi Tepp 25.veebruar 2010