retention during a bad economy

8/3/2019 Retention During a Bad Economy

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Retention During a Bad

Economy Keeping Talent After Downsizing

March 24, 2009

Oklahoma State University ± Oklahoma City



Ov er v iew

Q4 2008 Labor Market

Today¶s Labor Market Outlook

Layoffs with Dignity Survivors Syndrome

What Employees Want

Get Motivated! In Summary



Q4 2008 Changes in Total Staff Le v el by Organization

Sector



Q4 2008 Changes in Total Staff Le v el by

Organization Staff Size



Categories of Workers Affected by Q4 2008 Layoffs



Optimism about Q1 2009 Ov erall Job Growth

in the United States



Optimism about Ov erall Q1 2009 Job Growth in US

by Region



Downsize with Dignity

How you treat people really matters.

Must preserve critical intellectual & human

capital necessary to keep you business

going.

Your surviving employees are watching how

you treat exiting employees.

Allow Legal Concerns to Design your Layoff.



Three Considerations

1. Separating employees from the

organization.

2. Helping those who remain to manage

change effectively.

3. Redeploying employees to new roles in the

company.



Plan!

Who must be laid off. The amount of severance pay.

Will you provide outplacement services.

What are your legal requirements:

WARN (employers with 100+ or more full-time employees or full-

time & part-time working 4,000+ hrs/week at all sites) ADA

ADEA

Affirmative Action

Employment Contracts

Labor Negotiations Benefit Continuation:

COBRA

401(k), 403(b), other retirement plans



Communicate!

Let them hear it from you, not from rumors.

Provide facts clearly and sensitively.

Present the decision as irrevocable. Offer support and compassion.

Encourage the employee to take positive

action.



Preparing for Separation

Set time aside to prepare what you will say.

Where to conduct the meeting/who willconduct the meeting.

Anticipate reactions and prepare appropriateresponses.

Severance package planned and ready in

advance of the notification. Prepare a letter detailing the separation

package.



Conduct the Meeting

Open the meeting.

Appropriate time and neutral setting

No longer than 10-15 minutes

Announce the Separation.

Outline the Benefits.

Listen and Support.

Transition Work Responsibilities.

Connect with Outplacement Assistance.



Layoffs Hurt Retention, Recruiting and

Producti v ity

87% of those employees are now less likely

to recommend working at their company.

77% say their co-workers now make more

mistakes.

64% say their own productivity has declined.

Leadership IQ Survey



Sur v i v or Syndrome

Who¶s next?

Acknowledge the mourning and loss of colleagues ±

encourage your employees to express frustration to

you in a controlled environment. (EAP)

Insecurity can lead survivors to fire themselves.

Uncertainty cripples morale, climate, and culture.

Increased workload or change in responsibilities can

lead to burnout. Talk about goals to tackle now, why, and how to get

there, together.



Anxiety is associated with:

Anxiety

Stress

Psychological

Decreased Commitment

Decreased Job Involvement

Burnout

Behavioral

Absenteeism

Turnover

Accidents

Substance Abuse

Cognitive

Poor Decision Making

Lack of Concentration

Forgetfulness

Physical

Cardiovascular System

Immune System

Gastrointestinal System



Anxiety and Customer Ser v ice

High Anxiety

Work

Environment

Low Anxiety

Work

Environment

Feel Optimistic about future 78% 87%

Have enough information to do my job 84% 92%

Feel a sense of belonging 73% 86%

Can express my opinions without fear 70% 81%

Very Favorable Customer Satisfaction 37% 50%

Favorable Customer Satisfaction 52% 72%

Sirota Survey Intelligence Jan 2009



Why Do Employees Lea v e?

21%: Layoff/involuntary termination

16%: Remuneration

13%: Lack of Advancement opportunity

Lack of growth & development

Lack of recognition or respect for their contributions

Senior management must demonstrate to employees

that they are important to business success.



Leadership Beha v ior

Leaders throughout the organization must work

together to sustain optimism during hard times.

Leaders must demonstrate a strong commitment to

ethical business practices and fairness. Leaders must think strategically and engage

employees in the process.

Leaders must provide opportunities for employee

development.

Leaders must recognize performance/achievement

timely.



It Isn·t Always About the Pay

Maslow¶s Hierarchy of Needs Physiological needs

Safety

Love/belonging

Esteem

Self-Actualization

McClelland¶s Three Needs Theory

Affiliation Achievement

Authority



What Do Employees Want?

10%: Development

20%: Challenging Work

3%: Benefits 13%: Pay

13%: Work/life Balance

25%:

Fairness

16%: Camaraderie

Sirota Survey Intelligence study, January 2009



How to Impro v e Retention in a Tough

Economy Communicate with employees openly and often.

Be honest and proactive with employees about your organization¶s financial health and its business

plans. Ask employees for cost-savings ideas.

Strive to retain the current culture: retain the low-cost/high impact touches in your workplace fromproviding quality coffee to company picnics.

Stress the value of your benefits plan.

Focus on individual achievement and development.

Activate and sustain motivation.



Get Moti v ated!

The slides following are taken from Tamara

Lowe¶s book Get Motivated!

This material is presented as a tool, with

copyright permission from the author, and

does not serve as a promotion of Ms. Lowe¶s

book or other products.



Consider:

Motivated people advance further and faster in

their careers, earn more money, are more

productive, experience more satisfying

relationships and are happier than lessmotivated people.



But ² Not E v eryone is Moti v ated the

Same Way Law #1: Everyone is motivated differently.

Law #2: Each individual has a unique and

distinct motivational type. Law #3: What motivates one person can de-

motivate another.

Law #4: No one motivational type is ³better´

than another.

Get Motivated! Tamara Lowe, 2009



Moti v ational ´DNAµ

DRIVES ± The internal forces that mobilize aperson to act.

NEEDS ± The core requirements that a

person must have in order to be fulfilled. AWARDS ± The preferred remunerations

that a person desires for achievement; thematerial, spiritual, and psychological currency

that they want to be paid for performance.




Six Moti v ators

D

Drives

N

Needs

A

Awards

Connection Stability Internal

Production Variety External




The Three Question Test

Do you tend to be more competitive or

cooperative?

Do you prefer constancy or change?

Which would make you feel more valued at

work: sincere appreciation without a financial

bonus, or a bonus without appreciation?




What Moti v ates You?

Motivational DNA Profile Tool




Eight Moti v ational DNA Types

1. PSI: The Director

2. PVI: The Visionary

3. PSE: The Chief

4. PVE: The Champion

5. CSI: The Supporter

6. CVI: The Relater

7. CSE: The Refiner 8. CVE: The Explorer




Moti v ating People to Impro v e their

Performance

The Dollars and Cents of Motivation.

Hiring the Motivated and Motivating the Hired.

Remember Maslow and McClelland. The Secret to Motivating, Inspiring, and

Energizing Others.

In order to get motivated and stay motivated:

Like the activity

Be able to do it well Get Motivated! Tamara Lowe, 2009



How To Determine Moti v ational Types?

Passive Observation. S pot the Clues. If they:

Are speaking fast, are in a hurry, have a commandingpresence, are goal oriented and task-driven, are interested inleading others or controlling the situation: Then relate to them

as a Producer Have a friendly presence, calm pace, want to spend time

talking, are ³touchy-feely,´ seem loyal, steady, anddependable: Then relate to them as a Connector

Are concerned about order, schedule, structure, or rules; areconcentrating, focused, studious, seem quiet and serious:Then relate to them as a Stabilizer.




How to Determine Moti v ational Types?

Passive Observation (More clues) If they:

Are animated, expressive, high-energy, are interested inhaving fun, think outside the box, are original and creative,seem to have a short attention span: Then you relate to them

as a Variable Want a sense of meaning or significance; are concerned

about philosophical ideals, how decisions will make a positivedifference on the organization or the world; want to adhere totheir strong value system: Then you relate to them as aninternal.

Are interested in pay, advancement, status, public recognition,climbing the corporate ladder, gaining prominence or influence: Then relate to them as an External.




How To Determine Moti v ational Types?

Friendly Inquiry:

³What kinds of things do you enjoy doing?´

³What activities do you excel at?´

³Which do you like better, structure or spontaneity?´

³Do you prefer to work alone or with others?´




In Summary

These are tough times for many organizations and

their employees.

Change left unmanaged can result in employee

stress and anxiety, undercutting performance in a

number of ways.

Communicate, recognize, and develop your

employees and support your leaders and managers.

Understand what motivates, act on thisunderstanding, and retain your most important

asset: Your People.

retention during a bad economy

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