Soothe Employee Jitters
 By B.J. Addington

As the economy gets shakier, your employees might, too.

A declining economy is often accompanied by declining morale among small-business employees. Workers fear cuts in benefits, reduced work hours or worse, layoffs.

Even if none of those possibilities are on the table at your small business, the anticipation and fear about such actions can dramatically influence the motivation and productivity of your employees, whether you have two workers or 10.

How do you know if your workers have the job jitters? Watch for these signs:

• Employees ask more questions about the volume of sales at your company, indicating that they’re worried about the financial strength of your business
• A dependable employee begins taking more sick days, which might signal a job search
• Employees stop taking vacations, meaning they could be saving those days for pay in case of a layoff
• Workers initiate more conversations with you about the state of the economy and it’s impact on your business, showing that they’re worried about their jobs

Their fears about the economy and their jobs are natural. But as the owner and the boss, it’s your job to put those fears to rest. By doing so, you protect employee morale and productivity. And in turn, that protects your bottom line.

Here are four steps you can take to boost employee morale when the economy is threatening to sink.

1. Communicate
Talk to employees either as a group or one on one. Acknowledge the tough economy. If it’s had an impact on your sales, acknowledge that, too.

Explain to employees what actions you’re taking so your business can weather the economic storm. Are you looking to a new niche market to attract more customers? Are you cutting unnecessary costs to maintain solid financial footing? Tell employees about those plans so that they can feel positive about the business and their futures.

This communication should not be a one-shot deal, but an ongoing dialog in response to changing economic conditions. Communicating frequently with employees will help quell negative rumors and fend off false information that might be circulating around your small company – and it will bolster employee morale.

2. Ask For Ideas
Employees are in the trenches every day. They see what works, what doesn’t and what could be improved. Why not ask for their help?

Ask for ideas about ways to cut costs and increase sales. Ask for ideas about how to complete tasks faster, easier or more economically. Then implement those ideas if possible.

The results will not only help your profits, but will also let employees know that they’re valuable to you and your business. You’ll see productivity and motivation rebound.

3. Cross Train Employees
Nothing perks up an employee like learning a new skill. Give your workers the opportunity to stretch themselves by training them on tasks outside the normal scope of their job responsibilities.

You might pair them with a worker in another area of your company. Or delegate a task you’ve been doing to an employee. Ask workers what skills they’d like to learn, then find a way to teach them.

Cross training is good for your business in any economy because it builds employee loyalty and makes each worker a better contributor to the bottom line. In economic downtimes, cross training can be an important tool for pumping up employee motivation and morale.

4. Promote Teamwork
When people fear for their jobs they move into self-preservation mode, and teamwork breaks down. That’s the last thing you need when your small-business is battling an economic downturn.

Encourage teamwork by setting goals for the whole office or whole business, rather than goals for individuals. Recognize the team’s accomplishments and show employees how the whole team’s performance improved sales, increased productivity or reduced costs.

Getting employees to pull together will foster a happier, less stressful workplace. The profits of your business will improve right along with employee morale.



(Posted July 2008)

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