Business downsizing is a fact of life in today’s economic environment. While employers spend a lot of time focusing on how to do a layoff and how to treat the laid off employees, very little thought is given to the morale of those employees who are retained by the company after a downsizing.
Those workers are generally concerned about their future, and this can have an adverse impact on their ability to perform their jobs.
They may be asking questions such as, “Is there going to be another round of layoffs?” “Will I be asked to take a reduction in my compensation?” or “Should I be concerned about the health of the company?”
These concerns are normal and their anxiety may be reinforced by their interactions with those friends and former coworkers who were laid off.
How do you address these issues so that you can get your employees refocused on performing their jobs?
Most importantly, keep the lines of communication open between your remaining employees and management. Let employees know that it was hard for the company to lay off employees, and that it recognizes the process was hard on the retained employees as well as those who were let go.
Communicate to the retained employees that the company believes the current workforce is exactly what it needs to weather the current economic crisis and that it is important for everyone focus on being as productive as they possibly can.
Employers should also ensure employees are recognized for good performance and share in any positive news about the company’s overall performance.
It is critical that managers and supervisors have a positive attitude about the company and its future. Your workforce is smart and can distinguish between the official line from upper management and the negative views of a supervisor and/or frontline manager.
It is the supervisor and/or frontline manager who the rest of the workforce interacts with most on a daily basis. They are the face of the company to the rank and file employees.
As with almost every employee interaction, the key is to listen to employees and treat them with dignity and respect. When managers and supervisors act as though the views of the employees are not important, the communication between management and the rest of the workplace stops and morale plummets.
While you do not have to agree with every point raised by an employee, it is important to hear that employee out. When employees feel kept in the dark or disrespected, they are more likely to pursue a lawsuit or bring an administrative charge with the Equal Employment Opportunity Commission or the Washington State Human Rights Commission.
Clarence Belnavis lives in Vancouver and is managing partner at the Portland office of Fisher & Phillips LLP. He can be reached at cbelnavis@laborlawyers.com.
