HRFOCUS
Maintaining staff
morale in a downturn
By Jason Hemens, Corporate Communications Manager at Michael Page International.
2009 is proving to be a challenging year for businesses around the world. While China’s economy is fairing better than its Western coun-
terparts, the reduced demand for Chinese exports has impacted local companies in sectors such as manufacturing and supply chain.
As we have seen in previous business cycles, when revenues decline staffing costs are one of the first areas to come under the micro-
scope. Companies that are forced to cut staff are now facing the challenge of maintaining the morale of their remaining employees. The
people left typically have the business critical skills so it is important to keep them engaged and motivated. Here are some suggestions
on how to maintain the morale of your staff in a challenging business environment.
Show Honest Leadership your HR department if they have the capacity to conduct internal
Employees need leadership and direction during periods of organ- surveys to take the pulse of your organisation.
isational change. If job cuts have occurred, the reasons behind
the decision should be explained in person to the remaining staff. Show Appreciation
Once the job losses have been openly discussed, you can articu- Managers shouldn’t fall into the trap of thinking people who have
late a clear vision for the company, acknowledging the central retained their jobs should be appreciative and simply ‘get on with
role the remaining employees play in reaching those objectives. it’. While the remaining employees will no doubt value their ongo-
People appreciate and respond to honesty and a genuine call for ing employment, that in itself is not enough to keep them mo-
collective effort during difficult times. So don’t sugarcoat news – tivated and engaged. No matter what the business conditions,
be as transparent as possible and employees still need to feel their
you will earn the respect of your efforts are recognised and appre-
staff.
Keeping your high
ciated.
performers engaged
Communicate Regularly
At the management level, talk
and motivated is even
In the current climate, employees
are less likely to be rewarded with
regularly with your team mem- more important when bonuses and other financial incen-
bers about the direction of the
business conditions
tives. But recognition does not
company, the strategic decisions have to cost anything. It can be as
being made and the role each per-
are tough. These are the people
simple as acknowledging someone
son in achieving these objectives.
that will get you through the
in a team meeting or saying thank
As a manager it is essential that
you communicate with your staff
challenging times and position
you via email. Some managers
make a point of walking the floor
both individually and collectively. your company for growth when and stopping by a person’s desk
Translating broad organisation
the market turns.
to recognise their efforts. A kind
goals into practical job activities word can go a long way.
is an important technique to keep
your staff engaged. People need Develop Careers
to feel connected and relevant to One of the best ways to keep your
the broader strategy. To remain focused they need to feel there’s employees focused is by giving them ongoing opportunities for
light at the end of the tunnel. career development. If your company has had to reduce staff,
think of the ways in which you can assign some of the additional
The other point to remember is that communication should be a workload to your remaining team members. If you provide them
two-way process. You need to give your staff an opportunity to with opportunities to increase their responsibiltity in areas that
share their thoughts, concerns and ideas as part of the process. further their career you will keep them engaged. Remember to
Use your discretion - these discussions can take place during assist this career development with supportive initiatives such as
team meetings or in person. You could also consider involving internal training and mentoring programs.
38 MAY/JUNE 2009 www.chainaonline.com
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