The effects of the psychological recession are as strong among employees and their efforts as the impact of economic recession is in the world markets. Workforce Management recently reported:
“Corporations are mistaken to think that employees who survive layoffs will ‘work harder out of gratitude,’ according to a study by LeadershipIQ. In fact, by their own admission, employees say their companies should expect less from them going forward. The Washington-based research company says nearly three-quarters of employees who held on to their jobs amid downsizing acknowledge that their individual productivity is declining, while nearly seven in 10 say their company’s product or service lines are in decline since the layoffs. The research is based on interviews with about 4,200 workers at roughly 320companies that have enacted layoffs during the past six months. Other key findings:
• 87 percent are less likely to recommend their company as a good place to work.
• 64 percent say their colleagues’ productivity is declining as well.
• 81 percent claim customer service is falling.
• 77 percent ‘see more errors and mistakes being made.’
• 61 percent forecast ‘worse’ prospects for their company’s future.
“Coupled with an earlier Leadership IQ report, this paints a bleak picture for talent-hungry companies. It reveals that 47 percent of high-performing employees are actively seeking other jobs, compared with 18 percent of low performers and 25 percent of middle performers.”
As our CEO Eric Mosley recently commented in a CareerSmart Advisor newsletter article:
“In a recession, the first thing that gets hit is productivity. As people worry about the economy and the stability of their jobs, recognition programs can help alleviate some of that worry. During these tough economic times when financial perks are being cut from budgets, some employers are turning to recognition as a way in which to keep employees happy. Recognition is a low-cost way of getting that return. You’re filling a gap and boosting their feelings toward the company. Over the past three years, we’ve seen recognition grow as an important tool in HR, and in the past months, we’ve seen the rate increase even more.”
OnPoint Consulting has also recently recommended “dusting off recognition programs” saying, “Although many companies have recognition programs in place, they are often not being used effectively.”
This is very true. Consolidation of existing recognition programs can save up to 50% of program costs by taking the buried and distributed budget of multiple legacy initiatives, merging it into a single global program, tracking it, and providing executives with reports on the value of the program across the corporation. Auditing your established recognition programs will help you gain a full understanding of your current program spend, impact and level of governance.
What are you doing to boost morale and productivity in your workplace? Are you realizing the full value for your investments in this critical area?
Derek Irvine, Globoforce
