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.

Here are some core elements for you to consider as you move forward. They will support maintaining a productive, motivated workforce during times of change and growth:

1. Share the new business plans with employees so they have a clear idea of where you’re going and what you’re hoping to achieve. Break it down to short and longer term objectives. Show alignment to your mission and vision.

2. Cascading from your business growth plan, map out what will look different as you move into the future in areas of people skills and behaviors; the workplace overall, and internal processes, etc. Employees get excited about moving forward when they see how they fit in the future and how they will be supported to get there. Also ensure employees have access to be considered for any newly created opportunities – developing and promoting internal staff reaps rewards.

3. Involve employees at all levels. They can identify opportunities, provide feedback, flag areas of concern, and participate in determining solutions that keep you moving to achieve your future. Being fully engaged in the process helps maintain stability of the workforce and keeps turnover in check. Current employees are also the ones you’ll need to source more staff in future. There is a labour shortage.

4. Maintain open communication; use your intranet site if you have one, plus email/voicemail blasts and face-to-face messaging from managers so all staff are getting regular updated communication from the top. Communicate often. Celebrate mini milestones. Be prepared to recognize staff as they achieve new goals.

5. Change is a departure from the status quo; it is not business as usual. Managers are undergoing their own change, but their primary role is to lead others–they are change agents. Ensure a cohesive, on-board management team that can discuss and work through differences within that team.

Only through an effective people change plan will the journey to really begin.