Are They Ready to Bolt?

By John A. Haas
Management Strategies Group

During the last 18 to 24 months, many companies have downsized, some quite significantly. Many of us know talented people affected by these actions.

Downsizing Repercussions

Staff reductions can negatively impact productivity and efficiency, putting more pressure on "the bottom line." Fewer people remain, assuming greater responsibilities and expected to accomplish more things. People react to the added stress, and perhaps "guilt" from being a survivor where close and equally skilled associates weren't so fortunate. While grateful for remaining employed, they keenly feel the increased demands and scrutiny.

With fewer options and constant pressures to achieve plan, managers at all levels take on more themselves, try to delegate more responsibility or try to export responsibility to peer units. This, in turn, can thrust people into roles for which they are ill prepared. They try to learn what they need to know (or take action not knowing what they don't know!), which slows things down and produces errors. It's a vicious cycle.

Soon you have disgruntled employees who feel exploited, overworked, underpaid and irritable. They decide (but won't say) that as soon as the employment picture improves, they're "outta here."

Addressing the Problems

While you can't eliminate stress and performance pressure under these staffing conditions, the following ideas may help mitigate the effects:

Acknowledge the problem, empathize and assure the team that we're all feeling stress and will survive with teamwork.

Introduce or improve performance-based Cash Incentives to conserve cash and offer exciting upside pay potential.

Discuss Career Advancement opportunities and steps they and management can take.

Change Roles - Accelerate personal growth and insert new energy by reassigning people or changing responsibilities periodically.

Create Short Term Goals - 90-day individual or team goals, each with measurable priorities, can help keep people focused and fresh. Tie rewards to success.

Offer Personal Growth Support - Employees value continuous learning and competency-building through education, mentoring, etc.

Reward Productive Tenure through public recognition, celebrations, perks, awards, office size/location, furniture/equipment, training, etc.

Tell People How They're Doing - People want to do a good job and want honest, constructive feedback.

This list is not exhaustive. For more ideas, ask some key staff--they'll have suggestions!

Spring 2004 -Volume 14, Number 2

All articles are copyrighted by the authors in the year published.