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In the current climate, let’s face it; you are going to end up being the bad guy more often than not – I am sure I am. You will be the one announcing cutbacks, informing your staff that they face redundancy, freezing pay rises, and abolishing bonuses. So here are a few pointers to help you to minimize redundancies, keep your workforce motivated, and hopefully to stop everyone from hating you!
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So, at last, finally the market turns, and rather than having to cow tow to frankly second rate staff, now your time has come. The worm can finally turn! It’s your chance to kick some serious butt, and get people working harder. Because if they are worried about their jobs, they are going to work harder – right? Or not? Research shows that the stick is actually not a very effective motivational tool. If your method of management motivation is to threaten the sack every five minutes, then you can be sure that although your staff may seem to be playing ball, in reality they will be slacking off at any opportunity, and looking around for alternative employment to boot. It is important that you are seen to be the good guy, doing his / her best under challenging circumstances. The offer of a reward, how-ever small, for good performance will get a far more positive reac-tion from your staff than any amount of dire threats and warnings. Also, recognition is always more important than a prize, so do not forget to praise people for doing well. If you constantly hint at the possibility of redundancy for those who do not perform well, you risk ending up with a workforce that is anxious, distracted, and ultimately unproductive. After all, what incentive is there to perform well if they think they are unlikely to have a job at the end of the month? |
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If you are looking to cut costs without making redundancies, then you should consider revising your pay structure. Impose salary reductions across the board – which will not be popular - but introduce performance related pay incentives at the same time. This will not only motivate staff to work harder in order to earn more, it will sort out the wheat from the chaff, as it will quickly become apparent which staff are unwilling or simply unable to go the extra mile. Productivity will increase as the hard-working and talented amongst your employees raise their game, and any future decision about redundancies is made that little bit easier as you will have identified the dead wood and therefore know who to get rid of first. |
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If you have to make large scale redundancies, it is best to have a quick cull. Don’t spread the process over several months or into several rounds. This simply prolongs the agony for all con-cerned. Get it over with as quickly as possible, or you face dealing with a distracted workforce who collectively waste a good part of the working day standing round the water cooler discussing the redun-dancy process, or surreptitiously surfing the internet at your expense, looking for new jobs! |
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If you are keen to avoid making redundancies at all costs, then you should consider asking if your staff would be willing to accept a reduction in hours or salary. It is worth knowing that, in a survey recently commissioned by TipTopJob.com, it was revealed that nearly 40% of job seekers would consider taking a salary cut of up to 20% in order to secure a job. If you present your staff with this piece of information, it may serve to remind them how lucky they are to still have a job and make them more willing to acquiesce. This is not to say that you should bulldoze changes of this nature through. Instead, invite staff to vote either for this option or redun-dancy – this will empower them at a time when many are feeling vulnerable to the whims of their employer. |
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Ensure that those whom you are intending to keep on know that their job is secure. Make sure that you present this in terms of it being a reward for hard work, talent, and loyalty – nobody should be allowed to rest on their laurels and assume that they can sit back and relax. Impress upon them that they have to keep working hard and delivering excellent results, otherwise you may have to review your decision. Job security is a big motivator in today’s uncertain market-place. |
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Celebrate successes. Although they may seem like unneces-sary expenses, incentives such as Commission and Bonuses are what drive businesses forward, and removing them will leave employees de-motivated. Even small, less costly incentives (bottles of cham-pagne or even Cava) can work. And even a public verbal recognition of individual success or a round robin email to the company con-gratulating an individual (“employee of the week”) will give staff a boost and that is especially important in today’s market-place. On balance recognition is probably more important than a prize. |
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Encourage group activities to boost team spirit and morale. Encourage staff to get on and have fun whilst working as this helps to motivate them, and subsequently increases productivity levels. With the relentless conveyer belt of bad news, it is easy to imagine just how down your staff may be. Try to introduce group activities that are cost effective, uncontroversial but at least help to lift some chins. For example – bring your own food extended lunchtime picnic, dress down days, quizzes. It doesn’t hurt to show your human side in all this, so take the initiative in organising a few such activities, and take the lead in participating. |
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Encourage your staff to develop new skills. Ensure that in-formation about training / development opportunities is readily available and allow your staff the time to attend. If your company can no longer afford to fund training courses, why not offer to subsidize the cost of them instead? |
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Whilst the world may appear to be caving in, within a short time the situation should have improved. Not back to the heady days of the early noughties, but we will certainly emerge out of the crisis zone. With this in mind, think long term. Some very good people may have lost their jobs. People who, if you are smart, you may be able to pick up at just the right price and at just the right time. |
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Beware of the ‘overqualified’. Whilst in the short term it may be that your company will reap the benefits of recruiting someone with higher qualifications; ultimately they will strive for job satisfac-tion and a more suitable position. Thus leaving you high and dry. If you are happy to accept the fact that this position is short term and a merely a brief boost to staff quality then the situation can be advantageous. |
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