Maintaining Employee Engagement During Tough Economic Times

How do you maintain employee engagement and productivity with the constant stream of bad news about the economy? Depending on how this challenge is managed, we have found that it can either have a negative affect on employee morale or be leveraged to increase engagement. Organizations of all sizes realize that employee engagement has a direct correlation to employee productivity and company performance. For this reason, it’s especially critical to focus on engagement during an economic downturn.

A Review of Engagement
Let's review the theory behind employee engagement. Numerous studies have shown the direct correlation between employee engagement and an organization's performance (ROI, profitability, production, sales, quality, turnover, etc.). DecisionWise research has identified engagement as the combination of three factors: satisfaction, effectiveness, and motivation. Let's explore how economic challenges can adversely impact each of these factors.

Drivers of Satisfaction
Satisfaction is about meeting basic employee expectations in the workplace. Without these factors, employees will typically begin looking around for other job opportunities.
  • Appropriate compensation and benefits
  • Safety and job security
  • Relationships (manager, co-workers)
In times of economic uncertainty, many employees report that they no longer feel secure in their jobs as they wait for the "axe to fall." Additionally, squeezes in salary and benefits can cause levels of satisfaction to drop. While employers may not be able to predict the future, helping employees understand intended plans, as well as how these may impact the employee, will go a long way towards maintaining levels of satisfaction. Strong relationships with co-workers and their direct managers are also keys to weathering hard times.

Drivers of Effectiveness Effectiveness relates to how well an employee can perform his or her job. The following factors are critical if an employee is to provide a high level of contribution. These items remove the limits that may hold employees back from giving their all:
  • Clear communication and direction
  • Access to information and resources
  • Authority to make decisions
  • Necessary tools, equipment, and processes
With current cost-cutting, employees may find themselves with fewer resources and more work. Most of us will be required to do more with less. The 2008 Society for Human Resource Management (SHRM) Job Satisfaction Survey Report indicates that communication during these difficult times is critical. The ability to understand strategic direction and goals allows an employee to align his or her actions with those of the organization, make the best use of these scarce resources, and pull the organization through the storm.

Drivers of Motivation These drivers influence the discretionary effort given by employees. The choice to give this extra effort comes from within. When these factors are present, employees choose to give more than just that which is required to get by:
  • Job fit with personal strengths
  • Accountability
  • Alignment with personal goals and mission
  • Strong leadership
  • Stimulating work environment/team
The current economic situation can have both a positive and negative impact on motivation. The pessimist will see these difficulties as de-motivators. However, the optimist knows that difficult times can serve to unite the troops in a common effort and goal. There will be opportunities to challenge employees to stretch and grow in their positions. Here it is important to ensure employees are in the right positions and have strong leadership.

Maintaining Engagement when Times Get Tough
There are a number of things organizations can do to maintain and increase levels of engagement during tough times:
  1. Keep a pulse on levels of engagement. Use employee engagement survey results to understand where to focus. Conduct focus groups. Listen to what employees are saying and act on it.
  2. Communicate. Speak honestly about the challenges being faced, as well as anticipated direction. Without direct communication, employees will fill the void with worst-case scenarios.
  3. Tap into unused resources. As it’s important that available resources be maximized, it is essential to identify these resources. 360-degree feedback, employee evaluations, one-on-ones, and coaching are often effective sources for understanding where these resources and skills may be hiding.
  4. Develop Front-Line Managers. Employee engagement is “local.” It occurs at the individual and team levels, and is highly influenced by the actions of an employee’s direct manager. However, many front-line managers lack the skills to create an atmosphere where their direct reports can be engaged. Invest the time and resources to develop these skills in your managers.
Many clouds have a silver lining, and today’s challenges are no exception. By understanding and focusing on engagement, organizations can leverage tough times to build unity, improve efficiencies, and challenge employees.

Copyright 2008 by DecisionWise, Inc.