Retention During a Bad EconomyKeeping Talent After Downsizing

March 24, 2009Oklahoma State University – Oklahoma City

Overview

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

Q4 2008 Changes in Total Staff Level by Organization Sector

Q4 2008 Changes in Total Staff Level by Organization Staff Size

Categories of Workers Affected by Q4 2008 Layoffs

Optimism about Q1 2009 Overall Job Growth in the United States

Optimism about Overall Q1 2009 Job Growth in US by Region

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.

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.

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

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.

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.

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.

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

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.

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

Anxiety and Customer Service

High Anxiety Work

Environment

Low Anxiety Work

Environment

Feel Optimistic about future 78% 87%

Have enough information to do my job 84% 92%

Feel a sense of belonging 73% 86%

Can express my opinions without fear 70% 81%

Very Favorable Customer Satisfaction 37% 50%

Favorable Customer Satisfaction 52% 72%

Sirota Survey Intelligence Jan 2009

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.

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.

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

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

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.

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.

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.

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

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

Six Motivators

DDrives

NNeeds

AAwards

Connection Stability Internal

Production Variety External

Get Motivated! Tamara Lowe, 2009

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

What Motivates You?

Motivational DNA Profile Tool

Get Motivated! Tamara Lowe, 2009

Eight Motivational DNA Types1. PSI: The Director2. PVI: The Visionary3. PSE: The Chief4. PVE: The Champion5. CSI: The Supporter6. CVI: The Relater7. CSE: The Refiner8. CVE: The Explorer

Get Motivated! Tamara Lowe, 2009

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 wellGet Motivated! Tamara Lowe, 2009

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

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

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

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.