Will they stay ... or will they go?

Lose 10 pounds … cut back on caffeine … learn a new language … get a new job. With the lifting of the recession and the ringing in of the new year, many employees are taking a long, hard look at their careers and planning their exit strategy. And a big reason for their departure may surprise you: lack of trust.

According to Deloitte LLP’s fourth annual Ethics & Workplace Survey, one-third of the nation’s employees will renew their job search as the economy revives. Approximately 48 percent of the respondents cite a loss of trust in their employers as a motivator for seeking a new job. At the same time, 46 percent blame a lack of transparent communication from their company’s leadership as a reason for looking elsewhere.

What’s going on here? And more important, what can management do to regain employee trust and pull back the curtain on the major decisions affecting the workplace?

While you can’t eliminate the economic uncertainties that linger even in the new year, you can invest in the mental well-being of your employees. Here are some steps in the right direction:

1. Create a clear sense of purpose. When budgets get cut and staffs downsized, employees often wonder when a pink slip is coming their way. Managers can allay fears by meeting with employees after a layoff or restructuring to revisit corporate and departmental goals. Remaining employees must understand they are critical to the ongoing success and profitability of your company. Meet regularly to share revised goals and expectations. Clearly define roles and responsibilities. And most of all, let employees know that “we’re all in this together.” Getting through challenging times is easier when everyone is working toward a common objective.

2. Get employees involved in what’s next. Once employees understand they are important to the ongoing viability of your company, encourage them to uncover and share ways to improve efficiency – to find a better way. If employees believe their ideas will be heard and implemented, they are more likely to go above and beyond. Attaching rewards to great ideas and sharing them corporate wide also cultivates an environment of value and security.

3. Dole out “thank yous” and compliments. When raises aren’t possible in tough economic times, it is imperative that leaders and managers increase their efforts to bestow positive praise on a regular basis. Heartfelt words of recognition and encouragement have a way of immediately lifting spirits. Look for ways to call out a job well done, whether it’s submitting an error-free report, staying on task with a high-profile project or working well with others on a team initiative. For most employees, being valued and praised for their hard work is just as important as a paycheck.

Previous posts:
Through thick and thin, it’s the people who matter most

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

Will they stay ... or will they go?

Through thick and thin, it's the people who matter most

We talk a lot about employee morale on this blog. We stand behind the notion that happy, engaged employees are more positive, more productive and your most important resource. So when Robert Half Management Resources posed the question, “Which one of the following is the greatest lesson you have learned from the recession?”, we were pleased that the #1 response was, “Place greater focus on maintaining employee morale.” Ding, ding, ding – employee morale gets top billing!

Participating in the survey were 1,400 chief financial officers from a random sample of U.S. companies with 20 or more employees. The other top responses from the CFOs:

• Take decisive measures more quickly to avoid multiple rounds of cost-cutting — 22%
• Make sure we have enough staff to maintain productivity — 22%
• Implement more detailed succession plans — 15%

But back to employee morale. How encouraging that people in high places recognize the importance of employee morale – no matter how rough the waters. And let’s hope they’re not "all talk and no action" when it comes to this belief. We’ve said it before and we’ll say it again: Once the recession lifts, employees will remember how they were treated. Will your best employees stick around as the economy improves, or will they dust off their resumes and hit the job boards?

Happy employees are good business. “Without a motivated workforce and adequate staffing levels, companies can be ill-equipped to take advantage of improving market trends,” said Paul McDonald, executive director of Robert Half Management Resources. “They may also risk losing top employees as the job market strengthens.”

What about your business? Did you make employee morale a priority during the tough times of the recent recession? Are you confident that you treated your employees right … and will be rewarded with their continued loyalty?

Through thick and thin, it's the people who matter most

Don't let your employees leave without learning why!

What goes around comes around. According to MRINetwork, one of the largest recruitment organizations in the world, employers should expect as much as a 50% increase in employee turnover as the economy picks up again. So while it's good that you'll be able to lift your hiring freezes in the coming months, it's not so great if you find yourself saying goodbye to quality employees walking out the door in search of greener pastures.

When it comes to employee turnover, parting can be such sweet sorrow ... AND a unique learning experience. That is, if you take the time to conduct an exit interview and find out why an employee is packing her briefcase and hitting the road.

“Most companies routinely conduct exit interviews,” said Tony McKinnon, president of MRINetwork, “but unfortunately few of them use the information they garner for the company’s benefit. And yet, a poorly delivered exit interview can affect the morale of the existing employee population and undermine the company culture.” WorldatWork.org

McKinnon adds that the primary aim of the exit interview is twofold: 1) To learn the reasons for the person's departure, on the basis that criticism is a helpful driver for organizational improvement; and 2) to allow the organization to transfer knowledge and experience from the departing employee to a successor or replacement.

In other words, ask probing questions to find out the good, the bad and the ugly from the departing employee (and be prepared to listen when the news is less than flattering) and then, use that information to improve upon the position (and the corporate culture) for the person filling the departing employee’s shoes.

For additional direction, check out the article, Exit Interviews Reveal What Went Wrong in the G.Neil HR Library. From the article:

It’s important to gather profiling data on employees such as age group, length of time employed, department, division, and job classification or title. This information helps you identify the typical high-risk turnover candidate.

Understandably, most employees won’t want to level with you about their reasons for leaving. Some are merely ill at ease; others may fear reprisals from ex-supervisors. Nevertheless, you’ve got to encourage them to supply enough details to let you pinpoint the main reasons why most people are quitting. It’s the only way to get to the root of the problem. Your discussion should focus on these topics:

• Salary
• Benefits
• Opportunity for advancement
• Training
• Relationship with supervisor
• Relationships with coworkers
• Reasons for leaving that aren’t related to the job or company

Don't let your employees leave without learning why!