Maintaining a Stable Workplace in an Unstable Economy Presenters: Bill Brett, President, Barclay Water Management, Inc. Liza Fraser, Manager, Mid-Atlantic States, Barclay Water Management, Inc. Moderator: Diane Stoneman, Director of Consulting & Training, Winning Workplaces Presenters: Bill Brett, President, Barclay Water Management, Inc. Liza Fraser, Manager, Mid-Atlantic States, Barclay Water Management, Inc. Moderator: Diane Stoneman, Director of Consulting & Training, Winning Workplaces © 2008 Winning Workplaces. May not be reproduced or distributed without expressed written permission of Winning Workplaces.

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Why Stable Workplaces Matter Who benefits from a stable workplace What kinds of organizations benefit Do’s & Don’ts on maintaining stable workplaces in good times and bad Lessons learned Agenda

Featured Presenters Liza Fraser Manager, Mid-Atlantic States Barclay Water Management, Inc. Water Treatment Engineering New York, NY Bill Brett President Barclay Water Management, Inc. Water Treatment Engineering Watertown, MA

Barclay Water Management, Inc. Manufactures products and provides services that prevent corrosion, mineral scale deposit formation, and microbiological fouling of heat exchange equipment. Designs water treatment programs that prolong utility equipment life while saving energy and water. Provides products for controlling industrial wastewater.

Water Treatment Is A People Business Client Relationships vs. Technology –Success requires understanding heat exchange applications, water chemistry, AND developing long term relationships with customers. –Facility engineers purchase water treatment products/services from people they know, people they like and people they trust – NOT from corporations. –Barclay’s engineers must have an understanding of biology, chemistry, engineering and other disciplines AND possess great people skills. In the water treatment industry, employee stability is of paramount importance.

WHO BENEFITS FROM A STABLE WORKING ENVIRONMENT AND A STABLE WORKFORCE?

Employers And Employees Employees are more likely to focus on doing a better job if they’re not distracted by job insecurity. Employers enjoy low employee turnover. –Saves recruiting expenses and time interviewing job applicants. –Greater productivity - more experienced employees.

Who Else Benefits? The Customer Customers want stable vendors. Customer satisfaction and loyalty increase with workplace stability. Clients are more likely to continue doing business with firm if there is low employee turnover.

WHICH TYPES OF ORGANIZATIONS BENEFIT MOST FROM MAINTAINING A STABLE WORKFORCE?

Who Benefits From A Stable Workplace? Service providers: Cleaning firms to law firms to Wall Street investment bankers. Manufacturers for whom service is an integral part of product offerings (i.e. water treatment firms). Any organization for which developing and maintaining customer (or donor) relationships is critical to long term success of the firm.

Customer Relationships Stable workplace/workforce = good customer relations. Developing customer relationships is critical to every business, from local Starbucks to giant corporations such as GE and IBM. Why, then, do companies sometimes act as if customer relationships are relatively unimportant? Good question!

HOW TO MAINTAIN A STABLE WORKING ENVIRONMENT

When The Economy Is Strong Recruit individuals who are looking for a long term career, not simply a job. Hire applicants who enjoy working with people and want to help make things happen, not watch things happen. Allow employees to experiment with different approaches to solving problems but provide a safety net in case of failure. Communicate management and customer expectations to your employees on a frequent basis.

Management Is The Key Give your employees a good manager. They deserve one. Stable workplace only opens the door to good employees. Good management is required to retain top talent. Good manager keeps an employee motivated and productive and prevents turnover. This is where many organizations fall short.

HOW TO MAINTAIN A STABLE WORKFORCE DURING AN ECONOMIC DOWNTURN Easier Said Than Done!

When The Going Gets Tough When economy softens and sales growth stops or turns down, traditional knee jerk reaction is to reduce head count to generate immediate financial savings. In our business where wages and benefits total more than 50% of sales, terminating employees during a downturn would appear to be a no brainer. It’s not, especially if you expect to be in business when the economy improves.

Don’t Reduce Headcount! Because… Underestimates value of Human Capital. Experienced employees who have developed relationships with customers are often a company’s most valuable asset. When business conditions improve, you’ll be forced to compete with thousands of other companies to replace your lost employees. This is an expensive way to grow a business!

BEFORE YOU RESORT TO STAFF REDUCTIONS, TRY OTHER WAYS TO REDUCE COSTS

Cost Savings That Don’t Jeopardize Your Company’s Future Temporarily reduce wages – starting with senior management (share the pain). Job sharing – allowing employees in same department to reduce hours (and pay) while each works part-time. Many employees would be willing to accept a reduction in hours and pay to avoid permanently losing their jobs.

More ways to reduce costs Move into smaller, less expensive quarters and/or sublet some of your existing space. Have employees pay a larger share of benefits (ex. health care) using tax advantaged programs such as I.R.S. sanctioned Section 125 cafeteria plan before reducing or eliminating employee benefits. You can restore wages/benefits overnight and lease larger quarters on short notice. You cannot easily replace experienced employees who have great customer relationships. Lease/buy less expensive company cars.

Communication Is Essential During A Downturn Communicate frequently, especially if it’s bad news. Employees don’t like surprises. Bad news will be tolerated if openly communicated on a timely basis but surprises are fatal to morale. Your own employees often know the solution to survive tough times. Ask them!

Questions?

Upcoming 2009 Webinars Jan 28 Sustainable Workplaces – The workplace of the Future Tensie Whelan, President, Rainforest Alliance Tensie Whelan, President, Rainforest Alliance Tim Schultz, VP of Administration, Lundberg Family Farms Tim Schultz, VP of Administration, Lundberg Family Farms Feb 17 Wired to Care: How Companies Prosper When They Create Widespread Empathy Widespread Empathy Dev Patnaik, Co-founder/Managing Associate, and Dev Patnaik, Co-founder/Managing Associate, and Pete Mortensen, Communications Lead, Jump Associates Pete Mortensen, Communications Lead, Jump Associates Mar 24 Five Powerful Strategies to Develop and Retain Top Notch Technical Talent Technical Talent Tamsin Jolley, President, Decagon Devices Tamsin Jolley, President, Decagon Devices Jeff Young, Chairman & General Manager, ATA Engineering Jeff Young, Chairman & General Manager, ATA Engineering Apr 15 Exiting Gracefully – Options for Transitioning Ownership Corey Rosen, Executive Director & Co-founder, NCEO Corey Rosen, Executive Director & Co-founder, NCEO

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