“Leadership training–now? What? Are you nuts?” You would think that with 9% unemployment that retaining employees would be a breeze. Well, think again. As the recession drags on and layoffs and hiring freezes continue, companies are asking employees to do more with less. They have been asking them to do more with less for quite a while now and they have responded. Productivity is high and many companies have made good profits during the recovery. Management is inclined to think, “Wow! If we can make this much money with so few employees, why hire any more. We’ll just keep pushing them.”
The problem is that such levels of productivity may be unsustainable. People respond to crises. When asked to “roll up your sleeves,” many do their best to help out. But, the extra effort expended during the crises may be too much to maintain for the long haul. The evidence is that people are reaching a threshold. They are just about to run out of steam. “In 2010, nearly one in three of surveyed U.S. workers, or 32 percent, said that they were seriously considering leaving their jobs. Compare that to 2005, when 23 percent expressed that level of dissatisfaction, according to the report by Mercer LLC. The report also found fewer feelings of commitment, accomplishment and pride within the workplace.” (Nearly One In Three U.S. Workers Considering Leaving Their Jobs: Report, Huffington Post, November 18, 2011.)
The number of people actually quitting is, of course, still small. Economics makes it hard for anyone to find a new job, but the result is a workforce that is increasingly dissatisfied and poised to leave at the first opportunity. Which employees will be the first to leave? You guessed it. Your best people! Those with the most skills will be the first out the door. And the more heavy-handed the management style, the more likely it is that people will hide their intention to leave. Those organizations who believe that they are taking advantage of the situation to get more productivity out of people will be in for a big surprise when they look around and find that they will have to make do with the least skilled, the least motivated employees. What a shock!
This kind of problem can appear to happen suddenly. In an earlier article I wrote about thresholds.(Thresholds: Why Leaders Shouldn’t Give Up on a Good Idea Too Soon.). …. often the signs are present early on. Malcolm Gladwell discusses this phenomenon in his popular book, The Tipping Point: How Little Things Can Make a Big Difference. There are also thresholds on the way down. That is, little by little, things keep getting worse until, “boom,” it seems that everything falls apart at once. By now, we have all heard of the “boiled frog” phenomenon. Apparently, if you drop a frog into a pan of boiling water (Who would do such a thing?), it will hop right out, presumably as most living creatures would do. On the other hand, if you put the frog into a pan of cold water then gradually turn the heat up, it will remain in the water until it is cooked to a crisp (Somebody must have actually done this.). Illnesses, plaque build-up, credit card debt, excess weight and so on are examples of phenomena that “creep up” on us but seem to occur suddenly. In international disputes (wars), politicians talk about ‘mission creep.’” Failure to remain vigilant of the level of dissatisfaction among the team members can lead to an apparently sudden crisis.
It is prudent, I believe, for organizational leaders to also view this as an opportunity. Ironically, while business is slow may be precisely the time to do some of those things that you did not have time to do when you were in the boom times. Now may be the time to do that leadership training that you have been putting off. Now may be the time to examine those internal processes that people have been complaining about for decades. So, rather than looking for more and more ways to get rid of people, have them focus their energy and talents on the organization itself. Obstacles to training, development, creativity, research, and innovation often include busy schedules, deadlines, meetings with customers, vendor challenges, and so on. “So, who has time for that stuff? Besides, we’re lean and making loads of money and hoarding it away just in case the economy doesn’t improve.” Well, you may “suddenly” find that your top performers have “taken a hike” and the remaining employees are angry and bitter about the way they have been treated. Not exactly a healthy environment for gaining that all-important competitive edge. “Yeah, but we have all that money stashed away. Can’t we just go out and hire some better people?” Probably not as easy as it sounds! “Outsource it?” Another short-term fix that won’t sustain the business in the longer term! Could be that the joke’s on you. So, how do you go about retaining good people during the lean times? Here are a few tips.
- Really amp up the learning opportunities that you have been putting off for so long. Leadership training, team development, skill enhancement, diversity, mentoring. All of those classes that will expand the knowledge, skills and abilities of your managers and employees.
- Encourage flexible scheduling. Work from home. Job sharing. All of those creative, somewhat risky ideas that have made you nervous may be just the ticket.
- Create teams. Don’t just call the existing work groups teams but actually develop teams in the organization. Give them the tools, training, and authority to accomplish the things that teams do well. Improve quality. Improve customer service. Make organizational improvements.
- Listen. Be ever more attentive to the “rumblings” in the workplace. There is always a certain amount of normal complaining but if the frequency and severity pass a certain threshold, respond. Create more disciplined upward communication channels. Not just surveys but frequent, quick temperature checks.
- Take some risks. Try out some of those more quirky ideas that you have been reluctant to try in the past. Seeing an idea put to work can be terrifically motivating for many employees.
- Be visible. Don’t hide. Get out into the workplace and talk to people. Listen to what they say. Even if it is uncomfortable, your presence will make a difference in the long run.
- Get to know your people. All of those sort-of-familiar faces belong to real people. Find out who they are and learn something about them.
- Be more open. Let people in on what’s going on. To the degree possible, open the books and treat your team members like adults.
- Delegate. Avoid the temptation to add more supervision and management. Let people share in the enterprise; good and bad.
- Admit mistakes. Don’t try to justify your errors. People respect leaders who are willing to accept accountability for their own stuff.
- Tell the truth. Don’t insist that everything is fine when everyone knows it isn’t. If you have been doing all of the things listed above, even the most difficult decisions will be respected.
None of these things will, by themselves, guarantee that you will retain your best performers. But taken as a whole, those who are thinking about going somewhere else may think twice. It’s a lot harder to leave a place where you are respected, your ideas heard, you have the freedom to innovate, and you are expected to continue learning than it is to leave a company who treats you like you are an unwanted anchor on their bottom line. I don’t know about you but I am a lot more willing to pitch in and help out in a crisis if I believe my company and its managers care about me than if I believe they don’t.
In addition, these practices will also help you on the road to excellence during the good times. There is no wrong time for good leadership.