The current issue of MacLeans headlines “the employment storm of 2009 is on its way”. The main losses will be in construction, mining, oil, gas, and auto manufacturing. Projected job losses will impact industries such as retail, marketing, and advertising. For more information read any newspaper.

Economists, if correct, project that the pain will be brief and we’ll return to prosperity later this year or early in 2010. Optimism and hope for a timely recovery will help all of us head to the light at the end of this tunnel. 

For employers, staff shortages may take a reprieve and turnover levels may go down.  Employees are more likely to stay in their current position and ride out the wave. If they are looking around, they know that even the larger organizations are being impacted by the market. The ego-building period of multiple job offers is also on hold as employers take cautious steps. And, individuals nearing retirement are now extending their exit date to continue earning while they wait for their retirement nest egg to return to health. 

Costs of staff replacement go down, and your intellectual capital is retained.  Teams benefit by having the business knowledge, relationships and expertise intact. Use this time as an opportunity to build internal capacity; develop skillsets for succession planning; and recognize achievements. Increase communication with staff to keep them well informed.  Ask what types of support they need to support them personally.

I heard Suze Orman speaking yesterday – she’s the money guru who just launched a new book on basic financial planning for 2009. She has sound ideas on paying off personal debt, saving, and stabilizing for uncertainty.  Employees could start a discussion group based on the book and share ideas.

Review my previous Two-Minute-Tip on “Market Turmoil” for ideas on maintaining and building healthy employee relations, and keeping productivity levels up.

Who knows, when the market turns around, employees who were thinking of leaving may decide they’re right where they want to be.

We’re in the midst of far-reaching economic uncertainty and that brings forth concern and raises fear for many employees. If it’s not the daily discussions are about which jobs are considered “safe” and which jobs and industries will be impacted, your valued employees are looking at their RRSP statement or the TSX numbers, and that’s not comforting.

To be productive and focus on the work at hand, employees need a feeling of stability and direction. Meet regularly and keep employees involved as to your organization’s objectives and where you foresee changes to current objectives. To be impactful, employees must know where to focus their work efforts.  Shifting some duties and tasks may be necessary to ensure close alignment with any changing objectives. Once employees have this core information, they will understand the need for the changes, and they will have ideas that can support the organization; keep them involved and engaged.

To mitigate fear, communicate openly with staff. From an employee perspective “no news is bad news”. Withholding information may also hamper your ability to retain high performers who make their own conclusions and considering moving to an organization that looks more stable.

Should job losses be a consequence of the downturn, provide supportive outplacement services to bridge employees to new employment. This can take the form of individual and/or group sessions to support exiting employees with tools to plan and implement their job search.  It’s a win-win to provide exiting employees with support. Remaining staff will see their employer “doing the right thing”; and, you may look to rehiring exiting employees in the future once we’re through this downturn. 

Try This

Focus energy and efforts on these core elements:

1. Employee Retention: Recognize solid performance; be transparent about your organization’s objectives and concerns; show flexibility in responding to employee requests; continue career development; listen to staff input.
2. Productivity: take stock of employee performance and develop clear timelined goals; manage poor performance – this is not the time for less than ideal performance; tighten up what is not working. Employees, as partners, have a vested interest in maintaining a high level of productivity.
3. Customer Satisfaction: Do all staff understand the heightened need to differentiate your services from your competitors? Revisit customer needs and refresh service delivery processes and competencies.