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Retention During a Bad Economy Keeping Talent After Downsizing March 24, 2009 Oklahoma State University – Oklahoma City.

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Presentation on theme: "Retention During a Bad Economy Keeping Talent After Downsizing March 24, 2009 Oklahoma State University – Oklahoma City."— Presentation transcript:

1 Retention During a Bad Economy Keeping Talent After Downsizing March 24, 2009 Oklahoma State University – Oklahoma City

2 Overview Q4 2008 Labor Market Today’s Labor Market Outlook Layoffs with Dignity Survivors Syndrome What Employees Want Get Motivated! In Summary

3 Q4 2008 Changes in Total Staff Level by Organization Sector

4 Q4 2008 Changes in Total Staff Level by Organization Staff Size

5 Categories of Workers Affected by Q4 2008 Layoffs

6 Optimism about Q1 2009 Overall Job Growth in the United States

7 Optimism about Overall Q1 2009 Job Growth in US by Region

8 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.

9 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.

10 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

11 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.

12 Preparing for Separation Set time aside to prepare what you will say. Where to conduct the meeting/who will conduct the meeting. Anticipate reactions and prepare appropriate responses. Severance package planned and ready in advance of the notification. Prepare a letter detailing the separation package.

13 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.

14 Layoffs Hurt Retention, Recruiting and Productivity 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

15 Survivor 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.

16 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

17 Anxiety and Customer Service High Anxiety Work Environment Low Anxiety Work Environment Feel Optimistic about future78%87% Have enough information to do my job84%92% Feel a sense of belonging73%86% Can express my opinions without fear70%81% Very Favorable Customer Satisfaction37%50% Favorable Customer Satisfaction52%72% Sirota Survey Intelligence Jan 2009

18 Why Do Employees Leave? 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.

19 Leadership Behavior 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.

20 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

21 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

22 How to Improve 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 from providing quality coffee to company picnics. Stress the value of your benefits plan. Focus on individual achievement and development. Activate and sustain motivation.

23 Get Motivated! 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.

24 Consider: Motivated people advance further and faster in their careers, earn more money, are more productive, experience more satisfying relationships and are happier than less motivated people.

25 But – Not Everyone is Motivated 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 “better” than another. Get Motivated! Tamara Lowe, 2009

26 Motivational “DNA” DRIVES – The internal forces that mobilize a person 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; the material, spiritual, and psychological currency that they want to be paid for performance. Get Motivated! Tamara Lowe, 2009

27 Six Motivators D Drives N Needs A Awards Connection StabilityInternal ProductionVarietyExternal Get Motivated! Tamara Lowe, 2009

28 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? Get Motivated! Tamara Lowe, 2009

29 What Motivates You? Motivational DNA Profile Tool Get Motivated! Tamara Lowe, 2009

30 Eight Motivational 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 Get Motivated! Tamara Lowe, 2009

31 Motivating People to Improve 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

32 How To Determine Motivational Types? Passive Observation.  Spot the Clues. If they: Are speaking fast, are in a hurry, have a commanding presence, are goal oriented and task-driven, are interested in leading others or controlling the situation: Then relate to them as a Producer Have a friendly presence, calm pace, want to spend time talking, are “touchy-feely,” seem loyal, steady, and dependable: Then relate to them as a Connector Are concerned about order, schedule, structure, or rules; are concentrating, focused, studious, seem quiet and serious: Then relate to them as a Stabilizer. Get Motivated! Tamara Lowe, 2009

33 How to Determine Motivational Types? Passive Observation (More clues)  If they: Are animated, expressive, high-energy, are interested in having 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 positive difference on the organization or the world; want to adhere to their strong value system: Then you relate to them as an internal. Are interested in pay, advancement, status, public recognition, climbing the corporate ladder, gaining prominence or influence: Then relate to them as an External. Get Motivated! Tamara Lowe, 2009

34 How To Determine Motivational Types? Friendly Inquiry:  “What kinds of things do you enjoy doing?”  “What activities do you excel at?”  “Which do you like better, structure or spontaneity?”  “Do you prefer to work alone or with others?” Get Motivated! Tamara Lowe, 2009

35 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 this understanding, and retain your most important asset: Your People.

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