Tough times call for tough measures. In a recession or economic downturn government and businesses are continually looking for ways to strengthen consumer confidence. While ever customers are confident that there is light at the end of the tunnel, or merely have confidence in government and business that they can get through the tough times, there is an economy with a pulse. It may be faint, but there is a pulse.
Typical business measures implemented to bolster consumer confidence involve cost and waste minimisation. Stripping away the fat that was put on during the good years is a common first step, with many measures geared around cost, for example, streamlining, optimising processes and unfortunately, laying off employees.
In these times, what can be forgotten is that consumer confidence is not only bolstered by the perception of smart cost management, or being seen to be agile and responsive. Consumer confidence is also driven by the result of what they observe and how they “feel” when they engage with your business. This means that despite the circumstances, employee engagement needs to be healthy. This is because your employees have the power to exponentially increase the effectiveness, and perception, of cost management strategies in the way they embrace internal changes, engage with the customer and talk to their friends and families about the business.
The cost of not trusting your people
Employees are smart. They know when things are going well and when things are not so good. So when an organisation is having to make tough, cost related decisions, but keeping this information to the senior inner circle of managers, it's also a given that the employee group by this time suspects something is up. But they don't know what; and at the same time no one is telling them anything. So what's the natural thing to do? Speculate. Pretty soon gossip and rumour overcome facts and employee confidence in management and the company starts to diminish. This can cause organisational blow back for three reasons.
So how do you avoid any of these situations?
Trusting and caring for your people in these times is the same as saying we trust and value our customers. You can't have one without the other.
Companies that weather economic storms are those brave enough to combine trust and communication with their cost management strategies. There will be information that is too sensitive to share, so what is communicated at each level of the business may vary slightly. Going on the front foot and communicating the real situation to all employees from the outset can minimise paranoia and avoid going down the path of employee disenchantment.
There is no doubt that some employees will be upset or angry at the news. You will also have pockets of paranoia and cynicism. However this is outweighed by the fact that the organisation trusted their people enough to be open and honest. The benefits of communicating the 'what's', 'why's' and 'how's' of a situation can have some important benefits, in particular, brand protection, employee and customer confidence.
Brand protection comes about when your remaining employees, and the ones that are made redundant, continue to talk highly of the company. They can do this because they understand 'why' the company took its course action. They may not like it, but they understand. If you demonstrate empathy and caring in this painful process, there is a very good chance it will be returned.
Communication breeds confidence. When employees know what is happening to their business, and why, they feel involved. They offer ideas as to how things can be done smarter because they know management will listen. Additionally, when those remaining have to do more with less they know why. It doesn't make the job easier, but it helps provide a healthier mindset with which to do the job. Interestingly, it also helps the employees, especially those dealing with customers, have empathy with what their customers may be going through which is a vital strength during any economic period.
When the brand is being protected, and employees are confident in what is happening and why, it is easier to inspire consumer confidence - naturally. It doesn't remove the fact that it is a difficult period, however it can ease the way somewhat for all involved.
For some organisations implementing these ideas are 'tough measures' in and of themselves because it's not something that comes naturally. However of all the 'tough measures' that could be implemented it's one of the easiest and most effective and stands the best chance of yielding positive outcomes in both the short and long terms.
In short...your cost optimisation strategy needs to be equally matched by a strong, and genuine, employee engagement strategy that holds trust, transparency and communication at its core.
Author: David Morley
David is a developer of global-minded teams, leaders and organisations.
When it comes to fostering engagement, the role of a leader is central, and for leaders themselves, it can seem quite overwhelming. We know that the level of engagement is the result of a number of factors, two of which are leader-critical. They are the ability of your leaders to understand and articulate your:
Let’s explore these ideas in brief.
Whether you are a first time supervisor or a seasoned leader, your ability to make sense of where the company is headed and wrap your head around the strategy and objectives as they relate to your level of leadership is a pivotal activity when it comes to building engagement in your teams. The reason for this is simple. People like to know where they are going and what they are investing their energy in. Sure, there are some people who are just happy to turn up each day, do what they have to do and then go home. But for a majority of your people, they like to know why they are turning up each day and just how their role is contributing to the achievement of the bigger picture. Part of this is psychological, as we all have deep hungers for being informed and acknowledged. At its very core, sharing what you know of how your team’s objectives contribute to the function or company strategy will feed those hungers and prevent your people from making their own sense of where the ship is headed. So, if you know where the ship is headed, share it.
This one can seem a bit harder than sharing on direction as culture can seem like such a big and impermeable beast. But the reality is that as leaders we are custodians and champions of our organisations culture. If you’ve not gone down the path of capturing and optimising your organisational culture, you can still nail this one. What are the company values? These are usually derived from processes that distil what we believe are the important ways to think and act around here. If you don’t have clearly stated values, what is the vision? This is another way of getting in touch with the culture of an organisation. It’s certainly not the whole picture, especially if you find yourself in a situation where the stated vision or values are not demonstrated by the leadership of the business. Between your vision and values, you have some important guide posts for ‘how’ you should be leading. Whether they be values such as ‘passion’, ‘entrepreneurial’ or ‘customer-focused’, find a way to bring these to life in the way you lead. Talk with your team about what they mean for how your team does what it does on a daily basis. From first time manager to experienced leader…this one can be easy to do as well. From a psychological standpoint, by having this conversation your people feel involved in the business. And when you walk the talk, and carry out your role in the spirit of the vision or values you let your people see what good looks like. Some people need to see it to make sense of it whilst others will just get it.
These are a couple of small actions that any leader can deploy that will start to have a positive impact on engagement. Seriously, they are not time-consuming nor do they need to suck energy…rather they will most likely generate energy…and we know that when we feel energised we also start to feel engaged.