Why it's just as important to dole out the praise as it is the pay

We’re all too familiar with the saying “Money can’t buy happiness.” Well, it seems this sentiment is as true in the workplace as it is in our personal lives. Just as a bigger house, car or flat-screen TV can’t define our happiness at home, neither can a bigger paycheck, bonus or raise at the office.

What does bring more satisfaction, according to a recent McKinsey Quarterly global survey, is praise from our superiors. Recognition and support go a long way toward boosting an employee’s self esteem, building confidence and enhancing performance. Those are huge positives that, thankfully, don’t cost your recession-challenged business a lot of money!

Salary isn't everything

Conducted in June 2009, the McKinsey survey garnered responses from more than 1,000 executives, managers and employees from around the world (and representing a range of industries).

The survey posed the question, “Which incentives do you find boost employee morale and productivity most?” The answers were:

• Praise and commendation from immediate managers – 67%
• Attention from leaders – 63%
• Opportunities to lead projects or task forces – 62%
• Performance-based cash bonuses – 60%
• Increased base pay – 52%
• Stock or stock options – 35%

As the report outlining the survey results explains: “The respondents view three noncash motivators … as no less or even more effective motivators than the three highest-rated financial incentives. The survey’s top three nonfinancial motivators play critical roles in making employees feel that their companies value them, take their well-being seriously, and strive to create opportunities for career growth.”

How to keep employees engaged

The results of this survey are good news for cash-strapped employers still crawling out from under the recent economic downturn. “There couldn’t be a better time to reinforce more cost-effective approaches,” explains the report. Money’s traditional role as the dominant motivator in the workplace is taking a back seat to more intrinsic benefits.

So how do you act on this important message and motivate employees to give their best? Here are some simple, low-cost employee recognition ideas to enhance job satisfaction and performance:

Make a note of it
A hand-written thank you note shows you valued a person’s work enough to take time out of your day to acknowledge it. It’s a simple gesture with great impact. For even more impact, mail a card or letter home so the employee can share the praise with family members.

Point out employees publicly
Use a public forum, such as a staff meeting, to recognize excellent performance, so an employee’s moment in the spotlight is shared with others. Look for other creative ideas for employee recognition, such as company newsletters, intranets or even articles in local newspapers.

Little things mean a lot
It’s great to recognize the "big wins," but it’s also important to call attention to the everyday achievements. Reward employees for their “quieter” contributions with a thank you note and if the budget will allow, something extra like a store gift card, desktop award or free lunch.

Encourage peer recognition
Implement a program in which employees recognize one another. One version of this could be a "Pay It Forward" type of award in which the first employee who receives the award identifies the next employee who deserves the award.

Create a work environment that supports achievement
Display inspirational and motivational posters on the wall, introduce team-building or motivational games as a part of staff meetings, and provide occasional social events on company time to strengthen camaraderie among employees and management.

Keep in mind, too, that most employees enjoy new, challenging opportunities. Avoid micromanaging employees so they’ll gain a sense of control and mastery with their work, and involve them in (or have them lead) fresh projects that will expand their skills and stretch them creatively.

Why it's just as important to dole out the praise as it is the pay

7 ways to rev up employee reviews

When it comes to managing employee performance, many companies miss the mark. And here’s why: Performance management means more than conducting reviews with employees once or twice a year.

If you only provide feedback at review time – sitting across a desk and going point by point through a rigid appraisal form – you’re overlooking many valuable opportunities to mentor, support and guide your employees.

For more relevant, results-driven performance management, you should:

1) Provide regular and immediate feedback year-round. To help employees learn from their mistakes and overcome their challenges, you need to share feedback that’s specific and timely. If you’re plugged into what your employees are doing day to day, and have worked to maintain an “open door” policy with them, confronting them with constructive criticism will be easier.

2) Set the right foundation at the beginning of the year. Create some structure around your expectations for the position and what a positive, productive year should look like. With the employee’s input, take the time to determine a handful of objective, measurable goals. Strive for goals that are challenging, but at the same time attainable.

3) Keep track of daily performance. A performance log lets you jot down notes about an employee’s good or bad behavior, as you observe it or hear about it. This information can be a handy reference for weekly or monthly discussions and certainly, a much more reliable resource at review time than your memory!

=> => OK, you’re keeping the lines of communication open with your employees and providing thoughtful feedback on a regular basis. But like most companies, you also need to complete a written appraisal and conduct a formal, one-on-one review. Here’s how to make the most of it:

4) Be prepared. This should be obvious, but make sure you’ve thought through what you’re going to say, and how you’re going to say it, before sitting down with the employee. Whether you use a standard performance appraisal form or some other written format for rating key performance factors, you still need to talk through the contents and fill in additional details.

5) Lead with the positive. Performance reviews can be as anxiety-inducing for the employee as they are for the manager or supervisor. Reinforce the employee’s strengths (with specific examples, of course) at the beginning of the review to set a positive tone and help put the employee at ease.

6) Make it a two-way conversation. An effective performance review is not a one-sided monologue by a manager. Rather, it should be an open exchange that allows employees to voice their concerns and offer new ideas. Creating this dynamic will help employees feel you value their opinions, which goes a long way toward increasing employee engagement and morale.

7) Focus on what matters to the employee. Job satisfaction plays a huge role in an employee’s attitude and performance. Just as no two employees are exactly alike, there’s no such thing as a “one size fits all” approach to reviews. An effective review should explore the issues that matter most to the employee, whether that means accepting new challenges, working on teams, taking on more responsibility or receiving additional training. If you know what makes an employee “tick”, you can tie more of those motivators into his or her goals and objectives.

7 ways to rev up employee reviews

When the bride-to-be is busy planning her wedding on work time

I ran across an article on msnbc.msn.com that I found particularly interesting. First, because summer is a busy season for weddings and second, because I’ve known a few women who became a tad obsessed planning their walk down the aisle.

According to a survey of 1,000 women by TheKnot.com, WeddingChannel.com and ForbesWoman.com, brides-to-be spend about 10 hours a week planning their wedding – and nearly 30 percent of it is done at work.

But apparently it’s all in the name of multi-tasking. While nine out of 10 women who participated in the survey admitted to making wedding plans on company time, only a third felt their work was negatively affected.

Carley Roney, editor-in-chief of TheKnot.com, says that lunch time and Mondays are particularly busy times on her wedding planning website.

Cause for concern … or let it go?

OK, so what’s an employer or manager to do when Megan is more concerned about the bridesmaids’ dresses, guest list and floral arrangements than the latest workplace project or report?

If you feel the same way as Carley Roney, the answer may be to “not sweat it” because the productivity will come back that much stronger after the nuptials.

"Post wedding, people become much more serious and focused. They are saving for
homes, so they're not in the mind of changing jobs as much because they're very
focused on what their goals are ahead," says Roney.

So what do you think? Have you ever had to intervene because an employee was more concerned about her wedding than her work? Are weddings an inevitable productivity drainer – or can the bride-to-be strike a healthy balance and stay on task?

When the bride-to-be is busy planning her wedding on work time

Nobody wins in the 'blame game'

Walk down the hall or into a meeting room right now and you’re bound to overhear an employee blaming someone (or something) else - whether it’s a coworker, a boss, a client, the weather or a bout of stomach flu – for his work falling short or a project hitting a snag. It’s most certainly not the fault of the person doing the finger pointing, and he’ll do everything in his power to convince you of that.

It’s called “passing the buck,” and in workplaces where this is the norm, it’s a huge drain on creativity and performance. Plus, it appears to be contagious.

In a study at Stanford University, researchers asked 100 participants to read a news clip outlining a politician’s failure, where one group’s article had the politician blaming special interest groups for the mishap and the other group’s article had the politician taking full ownership of the failure. Then, the participants were instructed to write about a failure of their own, and what they think caused it.

The results? Participants who read about the politician blaming others were twice as likely as the other participants to blame someone else for their own shortcomings.

Before this study, researchers had a good idea about who does the blaming, and why. Pessimists blame more than optimists (“The glass is half empty, and it’s your fault”) and narcissists are more likely to shirk responsibility for their mistakes (“I’m so great, I don’t mess up”). And the biggest reason we blame others? To protect our self-image.

Now researchers also know that finger-pointing is catchy, which is detrimental in any social setting, the workplace included. They know, too, that while a blamer is busily guarding her self-image by shining a spotlight on others, she’s paying a price.

"When an individual is always pointing to external reasons for your mistakes you won't learn from those mistakes, so it hinders your ability to learn and become more effective," said study team member Nathanael Fast, of the Department of Management and Organization at the University of Southern California. msnbc.msn.com

So what can you do to keep your company from turning into a bunch of finger-pointing whiners who throw everyone else under the bus? It starts at the top.

"If you're a leader, don't blame other people, at least not publicly. You might want to offer praise in public, but if you have to blame someone, do it in private,” says Fast.

It’s a matter of accountability, too. By taking responsibility for their own mistakes, managers and leaders can serve as positive role models. There’s nothing wrong with admitting that you struggled with a particular aspect of a work project, or that you made an outright mistake – as long as you close the loop by fixing the problem, or seek the help you need to resolve the issue.

The real mistake is blaming others – and sending the message that it’s OK to do so.

Nobody wins in the 'blame game'

How to deliver an Olympic-worthy performance in the workplace

As I sit glued to my TV screen each night watching the highlights from the 2010 Winter Olympics in Vancouver, I can’t help but draw some parallels between the performances on the ice and snow by the world’s top athletes - to those by everyday working folk in businesses large and small. Granted, the working professionals of the world aren’t competing for Olympic gold, but the challenges they face each day – and the tools they need to keep their head in the game – share some interesting similarities.

=> Let’s start with the obvious: training. Every Olympic athlete logs countless hours in local practice rinks, tracks and gyms honing their skills before they ever set foot on the world stage. Without this discipline and dedication, we’d never know the likes of Lindsey Vonn, Apolo Ohno, Shani Davis, Evan Lysacek and Shaun White.

And without regular, focused training to keep their individual technical skills sharp, and their contributions in line with the company's goals, most employees will remain merely average. Employee training and development is the biggest opportunity you have for increasing productivity, improving morale and boosting employee commitment. Neglect this and some of your best employees (or, potentially, your best employees) may forever remain in the shadows and on the sidelines.

=> Right on the heels of training comes tools. What are the resources you’re providing employees to get the job done? An Olympic figure skater wouldn’t arrive at the rink with broken skates, or an alpine skier to the slopes with a cracked ski. Neither should your employees expect to do their best with outdated equipment and tired processes. You know the saying, “Insanity is doing the same thing over and over again and expecting different results”? Athletes are constantly tweaking their training routines and trying out the latest sporting equipment in the hopes of performing faster, stronger, higher, longer. Perhaps it’s time to explore some new, affordable HR resources to give your employees a competitive edge and keep your business running more smoothly.

=> With nearly every sport, the coach plays a huge part in an athlete’s development and ultimate victory. In the interviews following a winning performance, an Olympic athlete almost always gives credit (often with a lot of tears and fist-pumping) to the coach. Are your managers acting like coaches – supporting and inspiring their direct reports on a daily basis, but also playing tough, when necessary, and pushing them to perform better? It’s a delicate balance that sets the great managers apart from the good managers. Again, with the right tools and training, your finest managers can achieve that balance and become something even more valuable to your organization – leaders.

=> Feedback is another important part of the athlete-coach relationship. In fact, it’s the essence of effective coaching. Athletes don’t practice in a vacuum, expecting their coaches to remain silent as they struggle with a certain move – or on the flip side, failing to cheer them on when they nail a difficult maneuver. Your employees need constant dialogue from their managers and supervisors, too. They should have the advantage of working side by side with someone that understands their challenges, praising them when they do well and providing thoughtful intervention and support when they fail. Performance management isn’t a once-a-year occurrence at review time but rather, a day-to-day dynamic that keeps the lines of communication open between an employee and a manager.

=> Finally, there’s the main event. After years of training and selfless dedication, the Olympic athlete gives the performance of a lifetime, beating all odds and leaving the rest of us speechless. Later, we swell with pride as these awe-inspiring athletes step up to the podium and graciously receive their gold, silver or bronze medals. And while the achievements in the workplace may never compare to the latest, gravity-defying trick on the half pipe or the fastest time on the Super G, they’re just as crucial to the advancement and success of your business. Don’t assume your best-performing employees know their worth and that’s enough. Reward them with the thanks and recognition they deserve – either through inexpensive perks now (such as a desktop award, title change or nicer office) or monetary benefits later (such as a raise or extra paid days off) when the economy picks up again.

So what about you? When the 2010 games officially close on February 28, and the Olympic torch is extinguished, will you remember the many lessons our top athletes have taught us? Let’s honor their accomplishments and keep a little of that Olympic spirit alive right here in our workplaces!

How to deliver an Olympic-worthy performance in the workplace

How to steer clear of legal landmines in the new year

Protecting your business and “not getting sued” are topics that come up again and again on this blog. Whether you’re an HR professional, business owner or people manager, you’re all too aware how one legal misstep or compliance lapse can lead to much bigger trouble down the road.

That’s why my interest was piqued when I ran across a spot-on article by Susan K. Lessack, a labor and employment law partner with Pepper Hamilton LLP.

In her “Top Ten Things to Do in 2010,” Lessack discusses some important actions for minimizing the risk of employment-related litigation in the new year. In a nutshell, she suggests that you:

1. Make sure your company has a pandemic plan
2. Check your policies to ensure they’re a friend of GINA
3. Be sure you comply with the regulations issued by the Office of Federal Contract Compliance Programs (OFCCP) if you’re a federal government contractor
4. Ensure that disability leave policies do not contain inflexible provisions
5. Audit your wage-and-hour practices
6. Review relationships with independent contractors to evaluate whether those individuals are classified properly
7. Consider having a policy that advises employees who need a reasonable accommodation to request one
8. Review existing communication systems to ensure that employees have a way of raising concerns, and train manager to be effective in listening to and addressing those concerns
9. Develop a policy concerning employee use of social media, such as blogs, Facebook, MySpace and the like
10. Remember to document and communicate to employees any performance problems

Do yourself a favor and check out Lessack’s article for a quick snapshot of the best tactics for keeping your hands clean of any messy legal snafus. Many of the suggestions have been covered in this blog before, but they’re all points worth repeating. As are Lessack’s final words of advice for the litigation leery: “Remember that employees who feel they are treated fairly and with respect are less likely to bring claims against their employers.”

How to steer clear of legal landmines in the new year

Here's to a glass half full in 2010

I know it’s January 14, but you’re not already jaded about the new year, are you? You’re still happy to put the challenges of 2009 behind you, and are focused on a big and bold 2010, right?

I’m glad to hear that. And so is Terry Starbucker, the voice behind the blog, Ramblings from a Glass Half Full. A senior operations executive for a service business, Starbucker is committed to spreading “realistic optimism” through a philosophy he calls “Half-Fullism,” or to put it another way, “Dealing with the literal world in a favorable way.”

In his first-of-the-year post, Starbucker shares a New Year’s checklist of 10 things leaders can do in the coming year to make it great. If you're a leader at your company:

1. Don’t Dive in Head First – Take the time to review the year you just experienced, celebrating the victories and learning from the setbacks. Discuss these insights with your team now, before the new year kicks into high gear.

2. Study Up – How familiar are you with the details of your business or project plan for 2010? Absorb the full scope of what you plan to accomplish, so you’ll start the new year on solid footing.

3. Read Your Fine Print – Every leader’s strengths, left unchecked, can have a dark side (something Starbucker calls the “fine print”). For example, a hard-charging, assertive leader could have a tendency to become inpatient or steamroll over people. You must constantly self-correct to make sure you’re striking a healthy balance.

4. Put the Right Team on the Field – While you’re assessing your own strengths and weaknesses, review those of your team, too. Are there any unresolved issues from the previous year? Can you make changes now, before it gets too busy, that will improve everyone’s chance for success?

5. Keep Raising the Bar – In select areas, set higher targets than the year before. Even if a team experienced a “best ever” year, they can strive for better results the following year – and hit them.

6. Synthesize Goals – Reduce your business or project plan to four or five smaller pieces and communicate these goals through the organization. Talk up these goals heavily and be sure to keep everyone posted on their progress.

7. Calibrate Your Accountability Meter – Make sure your teammates know what is expected of them for the year; then, be prepared to lead using the full spectrum of accountability – encouraging and motivating them, but also taking appropriate action if they’re underperforming.

8. Clean Out Your Ears – In a non-stop, multi-tasking environment, this can be tricky, but it’s important to shut out the noise and listen - really listen - to what your teammates are sharing.

9. Give Feedback Early & Often – Even when everything is moving full-steam ahead, you need to pause periodically to give your teammates feedback - and make adjustments early in the process, when it’s easier.

10. Practice Patience, Tolerance & Engagement – Last, but certainly not least, it’s important to keep yourself in check and not become impatient, intolerant of criticism or adverse to conflict. Things won’t always go your way, and as a leader, you have to rise above it and stay calm, open-minded and understanding.

A new year, a new decade – what better time than now to take stock of what’s working and not working in your company – and challenging yourself to “lead” in a more positive, dynamic direction? With the right tools, training and mentoring, you can keep your glass half full and put the power of optimism to work for your business.

Here's to a glass half full in 2010

You can go buy the book, and not go BY the book!

I will not throw away my books!
I will not throw away my books!

I ran across this blog post titled “Seriously if you have ever used a canned performance appraisal you should be fired” where the blogger blasts the use of books (Ready-to-Use Performance Appraisals, specifically) to write employee performance reviews.

“One thing being a manager isn’t? Being a color-by-numbers, manager-in-name-only job. If you’re too “busy” to give an honest performance review, get out of the business of being a “manager.” If you have ever used a canned performance appraisal, you should be fired. If you’re an HR trainer and think it’s okay to teach “managers” to use pre-populated, canned performance phrases…well, you should exit stage right, too.”

Whoa! Those are strong words for the manager who might turn to a book or reference guide for a little inspiration or to get “unstuck” when working on an employee’s annual review. While I agree that using only “pre-populated, canned performance phrases” is no way to appraise an employee (and perhaps even a sign of a lazy, ineffective manager), I also don’t think we need to shelve these books and guides completely.

The way I see it, these books are a tool – one of many in a manager’s toolbox that can be used to fix a problem, measure up a situation or build a better team. Just as a great cook might start with a basic recipe, but add his own flair with a dash of this or a splash of that, so can a great manager refer to a well-written book to create a balanced performance appraisal. Not sure how to address an employee’s time management issues? A book might help. Want to outline some new performance objectives to coincide with an employee’s recent promotion? A book might help. “Help” is the operative word here.

It comes down to this: If you’re a good manager, you shouldn’t treat performance appraisals as a once-a-year occurrence and you shouldn’t expect a book to magically write a review for you.

So when it comes to writing performance reviews, don’t go “by the book,” but don’t toss it aside, either. It deserves a spot in the manager’s toolbox!

You can go buy the book, and not go BY the book!

Mastering the tools of engagement

Your employees show up to work every day, and most of them are doing a great job. But as five o’clock inches closer, you notice that they’re counting down until the workday ends. If more employees were excited to be at work, rather than thinking about quitting time, the company could do a lot better. Raising salaries isn’t an option right now and you feel stuck. What can you do?

Budgets have shrunk and our belts are so tight it’s hard to breathe; traditional motivators like performance bonuses are out of the question. So, what can managers do to improve employee commitment when dollars are in short supply?

The good news – managers can use many tools to improve morale, boost employee motivation and raise the level of engagement, even when there seems to be no room in the budget.

These tools fall into one of four basic categories:

What is said?
What is permitted?
What is encouraged?
What is offered?

Find out how to leverage the tools of engagement in G.Neil’s free white paper, The Tools of Engagement: Boosting Employee Commitment When Money is Tight (.pdf).

In it you’ll find suggestions on improving employee engagement on a budget and examples to help you identify what’s missing in your workplace. No registration required, read the white paper (.pdf) today.

Mastering the tools of engagement

Employees just say ‘no’ to management

Preparing the next generation of managers has become one of the leading workplace issues since the recession began, but many employees are lacking preparation and/or interest in taking the next step toward management.

In 2009, 52% of employees surveyed for the annual Randstad World of Work survey felt there are not enough qualified managers in their organizations and 45% see a shortage of qualified managers in the future.

The survey also revealed that a majority of employees don’t want to become managers.

“It’s roughly a 50/50 split but it’s still a pretty startling realization. Up until now the assumption has been every employee aspires to become management, to work up the corporate ladder and end up in the corner office with a window. But it seems they don’t. And at this point, the people with the most experience are the least likely to want to become a manager.”

Why not? Increased stress was the number one reason why employees don’t want to enter management. When asked why they don’t want to be managers, employees said:

- Increased level of stress (82%)
- Handling disgruntled employees (74%)
- Increased paperwork (63%)
- Having to terminate or layoff employees (63%)

What can be done to change employees’ perception of management positions? According to the survey results, it may involve a rethinking of management all together.

The desire to become a manager is not driven by money or power, said most survey respondents. Instead, the top two reasons for wanting to become a manager were sharing knowledge with others and having more responsibility for the success of the organization.

“It seems that employees are asking their companies to reconsider and rethink the job of “manager” and how that person relates to the workforce. Just over half of the employees surveyed in 2009 felt the roles of managers need to change. Fifty-two percent saw a difference between the managers of today and the ones of tomorrow. Employees are looking for more than a new generation of managers; they are looking for a new generation of role models.”

Employees just say ‘no’ to management

Small businesses report steady or improved morale, despite recession

A new workplace survey suggests that efforts by small businesses to maintain employee morale throughout the recession are paying off.

More small businesses believe that employees’ work environment has more impact on job satisfaction than financial factors like benefits or compensation, according to the TriNet quarterly HR Trends Survey.

More than 75% of the 250 small businesses surveyed said employee morale has held steady or improved during the second quarter. Another 41% believed that employee morale in their companies has remained unchanged from a year ago. More than one-third (34%) felt that employee morale in their organizations improved during the past year.

Survey respondents cited company culture and reputation as the top contributor (36%) to employee morale, followed by flexibility and work/life balance (23%) and job security (22%). The bottom of the list included advancement opportunities (4%), benefits (5%), or compensation (9%).

Well over half of employees (60%) said their employer successfully built and maintained a positive employment brand through good communication and quality management practices.

“These results prove that employees are happier and more likely to stay with their companies due to the quality of their management,” said Burton M. Goldfield, president and CEO of TriNet. “Companies that develop the skills of their leaders boost employee morale, which then positively contributes to the company’s overall employment brand.”

How do you think the recession has impacted employee morale at your company? Over the past year, has it improved, remained steady or declined? Please leave a comment and let us know how your organization is handling it.

Small businesses report steady or improved morale, despite recession

What workers want most this summer: Time

Flexible schedules and leaving work early on Fridays are the the benefits employees want most this summer, a new survey by OfficeTeam suggests.

More than 450 office workers were asked, “Which of the following summer benefits would you most like to have?” They answered:

• Flexible schedules 38%


• Leave early on Fridays 32%


• Activities (e.g. company picnic, potluck) 6%


• More relaxed dress code 5%

“Employees appreciate flexibility in their jobs because it gives them greater control and enables them to handle other commitments without sacrificing their work performance,” said Robert Hosking, executive director of OfficeTeam.

Flexible scheduling can be an inexpensive way to motivate employees during the summer months, adds Hosking. For businesses worried that customer service will suffer, he suggests staggering workers’ schedules to maximize the total number of hours employees are able to assist customers.

“Companies should pilot flexible schedule programs before rolling them out permanently,” Hosking recommended. “This gives businesses time to evaluate the impact on workflow and productivity.”

If flex time isn’t an option, allowing employees to occasionally leave early on Fridays can boost morale. Many workers plan activities and weekend trips during the summer months and would appreciate the extra time to get started, says Hosking.

What workers want most this summer: Time

Lonely cubicle graveyards killing employee morale

Since the recession began, companies have been forced to make difficult decisions, including mass layoffs and downsizing. Among a list of other negative repercussions, those difficult business decisions are transforming once bustling gray mazes full of busy employees into barren “cubicle graveyards.”

Workers may now have more room to stretch out, but the ever-growing emptiness is having a harmful effect on remaining employees’ morale.

During the past year, the average square foot per office occupant has risen to 435 square feet, up from 415 square feet in 2008, according to International Facility Management Association (IFMA) in a recent MSNBC article.

Compared to last year, there are fewer people working in a greater amount of space. A spokesperson for the IFMA attributes the growing amount of empty space to the economic downturn and mass layoffs our country is experiencing.

While the sight of empty cubicles can be depressing to remaining employees, many organizations aren’t doing much to improve the situation.

"To some extent, companies are waiting until things stabilize so they can look at their options," says Ilene Gochman, an organization effectiveness expert with consulting firm Watson Wyatt. "People are not sure they have the right size organization yet. They don’t want to move people and then have to move them again."

Unfortunately, it’s not that easy on those left behind.

"Emotionally, workers look around the empty office, and it brings the depth of the economic crisis home for them in a personal way," says Leslie Seppinni, a clinical psychologist. "They wonder: 'Am I next?' and a tremendous amount of anxiety and depression builds as they try to figure out what steps to take next." (MSNBC)

Other workplace experts featured in the article offered some tips for offices dealing with cubicle graveyards:

• If you’re an employee upset over the empty office landscape, speak up. Some managers may be unaware of how the empty cubes are affecting morale and usually all it takes is a simple conversation to bring it to their attention.


• Rearrange the office and test different layouts. Take a look at how employees are using the space they already have and ask, “Do they need more conference rooms or more collaboration space, such as informal meeting areas?”


• Let in natural light. A simple way to immediately improve the mood around the office is to allow more natural light flow through windows. Disassemble cubicles and give more employees a window view. Set up Wi-Fi in the office so workers can become more mobile and collaborate easier.

Lonely cubicle graveyards killing employee morale

Pay-for-performance programs more popular in tough economic times

More companies are paying closer attention to their pay-for-performance programs than the traditional “automatic raise” systems, according to a recent study by the Institute for Corporate Productivity (i4cp).

i4cp polled over 500 companies, revealing that 78% of companies tie pay to performance, with most of the focus directly on solid performers. In large companies with 10,000 or more employees, 84% tie pay to performance.

More than half of the companies surveyed (54%) don’t offer merit raises of any kind to low performing employees. However, merit raises for average and high performing employees varied only slightly. Average performers generally received raises between 3% and 4%, while high performers received between 4% and 5%.

The survey also found that companies are keeping a close eye on the accuracy of their pay-for-performance programs. The majority of companies (71%) said senior management is holding managers accountable for their rating accuracy. To ensure that accuracy, 73% of companies offer training for managers and supervisors who determine employee performance rates.

"Companies are becoming more willing to withhold merit raises for poor performers, but in general they are still not truly distinguishing the top performers from the average," says i4cp research analyst David Wentworth. "This could be due to a fear of creating a perception of unfairness when they are trying to find the fine line between the good and the very good. In this economy, where reductions in force are the norm, companies are really focused on how they treat the surviving employees."

Performance rewards most often come in the form of cash, with 69% of respondents providing a salary increase (74% of large organizations). Another 64% of companies (72% of large companies) offer a one-time cash bonus as a performance reward.

A smaller number of large companies (24%) and only 14% of all companies use stock options. The least popular rewards come in the form of non-monetary perks, with just 14% of companies using non-cash rewards.

The recession has forced pay-for-performance systems to the top of priority lists for many companies. The study found that 44% of companies cite the economy as the main reason for giving their merit-based programs higher priority.

Read more about the i4cp study. Visit the Performance Management section of the HR Library for more information on evaluating and rewarding employee performance.

Pay-for-performance programs more popular in tough economic times