How to tackle a morale dilemma – The Sunday Times (Business)
Thursday, January 14th, 2010By Sandra O’Connell
It’s bad enough losing consumer confidence, what businesses can’t afford is to lose staff confidence too.
It’s something Rosie Boles, managing director of the country’s oldest department store, believes wholeheartedly.
“We trade on the friendliness of our staff and the great customer service they offer. That’s just not something we could do if our people are suffering from low morale,” she said.
The Burgess department store in Athlone has been trading for 170 years and, if the current MD has anything to do with it, it will be trading for 170 more.
As part of this, the department store has been investing heavily in itself, not despite the downturn, but because of it.
While others slashed their training budgets, Burgess sent her staff on sales training courses. She also invested in a new store front and a brand redesign. She believes that, as a result, morale is surprisingly high.
“The fact that staff can see we are investing in the business has in itself been a huge boost to morale. They appreciate we are doing the best to get customers in to them, to allow them do what they do best,” said Burgess.
To balance out the investment she has cut costs by negotiating hard on overheads such as insurance and waste as well as on administration costs. Rather than make redundancies among her 42 employees she put a ban on the hiring of seasonal staff.
“The result is that yes, sales are down this year, but not by as much as the national average. And at a time when our sector has taken a hammering, we are on track to break even,” said Burgess.
According to research from Deloitte, the downturn is taking a significant toll on employees. Of business leaders surveyed, 44% cited a decline in employee morale, a figure which rose to 60% in financial services. Almost half (46%) of Irish managers surveyed see ‘employee engagement’ as a top priority.
“Morale is difficult right now,” said Patricia Callan, director of the Small Firms Association.
“Most companies have been going through massive change. Employees feel they are lucky to be in a job but to be in it they are doing more work, are under more pressure and are, in many cases, suffering from survivor syndrome over the loss of colleagues as well.”
It’s a difficult environment in which to try and foster motivation, but it is possible.
“A critical part of it is openness and honesty,” said Callan.
“Be frank, share details, and give staff the numbers. Management traditionally buries its head in the sand in a crisis. Instead be visible, lead from the front and make it clear that you have a plan. Only then can people stop worrying and start being more productive.”
There is some reason to be positive. “The fact that a business has survived the toughest 18 months in 25 years is a good indicator that it will still around in 18 months time,” said Gerry Flynn, a consultant with Align Management Solutions.
Despite this, keeping employees engaged has never been tougher, he admits.
Younger staff members may be particularly vulnerable. “They will be used to business walking in the door. Now they need to improve their quality of customer service like never before, thinking not just about the sale but about the long term customer relationship.”
Where there is no budget for training, spend time with them instead, clarifying objectives and helping them achieve goals.
Equally, devote management time to succession planning.
“I’m not talking about who will succeed when you retire, but companies losing jobs through natural wastage, where people leaving are not replaced, need to encourage and help remaining staff to take on extra tasks to fill these roles,” said Flynn.
The more intrinsic a person is to the organisation, the more valuable and secure they feel, as long as the changes are not introduced in a way that increases their stress.
“Done properly, it will boost morale,” said Flynn. “Most people when approached reasonably will be reasonable and adaptable. But it’s about forward planning. The worst thing in any organisation is a crisis that comes as a surprise.”
For Orla Thornton, who lectures on the subject at Athlone IT, internal communications are now every bit as important as external PR.
“The current climate is uniquely awful but if you allow communications to break down you will make a bad situation an awful lot worse,” said Thornton.
She too believes there is reason for optimism. “All through the boom it was about big brands and big stores. Now there is a greater than ever sense of wanting to support the small guy, the local guy. That is an opportunity to be harnessed.”
With budgets tight however, owner managers need to find ways to reward staff other than financial.
“All the research shows that job recognition, not money, is the main motivator. Even saying ‘well done’ helps enormously,” said Patricia Callan.
Mike McDonnell, chief executive of the Chartered Institute of Personnel and Development, agrees. “During the boom the power of praise got completely lost in the workforce. Organisations would do well to rediscover it, because it doesn’t cost you a penny to say thank you or well done.”
Ensure staff realise too that, whatever travails your firm is going through, you all are going through it together.
“Research showed that mental health issues actually reduced during WWII, because of the sense of community that the war engendered. In the same way, focusing on the downturn collectively helps people cope better than they can individually,” said McDonnell.
After praise and a sense of community, look for tangible ways to boost morale which won’t break the bank.
“It may not be appropriate to have a big office Christmas party this year, particularly if you have lost staff,” said McDonnell.
“Instead offer practical rewards such as gift vouchers, which can be given to the value of euro 250 tax free. This kind of help is much more in the spirit of the current climate and is really appreciated by staff.”
Don’t dismiss team building exercises as too costly either. McDonnell suggests working with a charity to organise an office sponsored event, such as a hill climb or a bike ride, which has the dual purpose of raising funds and providing valuable bonding opportunities among staff.
Finally, where you do have to let staff go as a result of the downturn, be very careful how you do it.
Providing outplacement programmes to help former workers find their feet with new employment does not have to be costly, said Paul Mullan of Measurability, a HR consultancy, but it can pay dividends.
Run either on a one to one or group workshop basis, they help exiting staff with CV building and interview skills.
“Not only does it help the people leaving in a very practical way, it sends a very strong signal to the people left behind that you really do care, and that’s hugely important for morale,” said Mullan.
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