As the recession continues to offer challenges to our workers and colleagues, businesses of all sizes are not without their own continuing challenges.  Companies and organizations that have been able to reward staff with increased wages/benefits in the past find themselves in positions where they are thinking of laying off workers, cutting back hours, or at least canceling any pay raises for the immediate future.  Or, many of the above!  Mary Poppins used a “spoonful of sugar to help the medicine go down” and so can you.  Recognizing and acknowledging the importance of the employees’ contribution to a business is critical for any well-run business at any time but it is especially important to acknowledge input and achievements when staff is concerned about the future of the business and consequently, their future. 

If there are concerns about the economic viability of the business or if you, as the CEO, are faced with making tough decisions about the immediate or long-term future of your organization, keep your staff informed.  Remember, if you do not share important news about your business, the rumor mill will take care of that for you!  And the truth is so much better than “water cooler” projections!  You do not need to give all of the details of your financial struggles but you want to let workers know what they can expect in the future from the organization.  

A simple way to explain company finances is to use a facsimile of a dollar bill.  Divide the dollar bill into parts representing percentages of what the business spends on such items as wages/benefits, maintenance/upkeep, capital purchases, debt, raw materials, office supplies, etc.  Be certain to represent the employer’s share of payroll taxes, workers’ compensation, and unemployment insurance in the portion representing wages/benefits.  As a matter of fact, it is a good idea to present this information on an annual basis, as it is easy for workers to overlook any financial benefits that may be ‘hidden’ and not part of their take home pay.  Be upfront about the percentage of a dollar that goes to administration (your profits and wages).  After all, your employees are adults and although they might not like the message, they will accept it if you are open, honest, and have proven yourself to be trustworthy.  They also recognize that you are in business to make a profit!

If you are faced with layoffs, be open about your plans.  Utilize a formal layoff policy developed with the assistance of an HR expert. Communicate your lay-off plan formally and informally with supervisors and workers.  Give reasons for eliminating positions, explain how work of those positions will be absorbed, and adhere to your formal layoff policy in order to avoid legal issues and bad PR with your staff.  Determine if your organization, because of its size, falls under the jurisdiction of the WARN ACT.

Of course, workers continue to look ‘for the money’.  If you did a good job of communicating your current reduced budget and presenting a clear picture of company finances, you can offer some low-cost ways to show your appreciation for employee efforts and continue to demonstrate your commitment while your business improves.  Some low-cost/no cost suggestions include:

• Time... Can you make work hours more flexible?  Acknowledge that weather conditions can prevent commuting, childcare, and other related problems during this time of the year.  Allow for flexibility of start time and end of workday time when feasible.  Send workers home early on occasion.  Consider canceling routine meetings and extending deadlines for projects.
• Surprise Entertainment Breaks... Locate singers, bands, or local entertainment groups from area schools and schedule them to perform in the building cafeteria, entranceway, or a conference room.  This might appear frivolous but can offer a welcome no cost change to the business routine!
• Rule Suspension... Remove the most frustrating and least necessary rules of the organization for a limited time or for the duration!  You know what these are and how frustrating they can be to your employees!
• Offer and Serve Breakfast/lunch to Workers... Do not appoint someone such as the HR group or PR staff to do this alone.  Staff wants to see the owner/CEO.  Nothing can be more important than demonstrating your interest in those individuals who are adding to your bottom line!  Assist people in cleaning off their cars prior to the drive home after a snowstorm!
• Send Notes... to employees and their family telling them how they make a difference in your organization.
• Make Arriving and Leaving the Workplace Easier... Keep employee sidewalks and parking lots clear of ice and snow.
• Start an Employee Newsletter... This is an excellent, inexpensive means to communicate information about your business.  Allow workers to have input regarding types and extent of news to be included.  People are always interested in families, community, and often, someone’s favorite brownie recipes!
• Peace in the Office... Consider a period of amnesty or apology for past conflicts.  Include yourself as appropriate.  You might be surprised at the results of the effort to offer a fresh start for some people!

Activities such as these strengthen our bounds with our employees.  Saving money is not our only rational.  The gift of a caring workplace extended to employees provides energy, motivation, and increased effort for the hard work facing everyone in the future during these challenging times.

The opinions presented in the above are based on the author’s 25 years of experience as a Human Resource Executive.  The author holds an MA degree in Labor and Industrial Relations and is completing a dissertation as a requirement of Capella University’s PhD program from the School of Business and Technology.