Employee Morale After Layoffs

With the current economic situation, many wineries are dealing with staff reductions. After weathering the layoff, the employees that are left are often nervous and apprehensive about their own job security. Managing through this time is necessary and can quickly improve productivity.

Elizabeth Garone of the Wall Street Journal recently published an article in the Career Journal about steps to take after a layoff. Here are the five things she outlined to keep morale up

• Find alternative incentives: If you previously gave out cash incentives for meeting or exceeding goals and now can't justify the expense, think of other ways to incentivize your staff. At my former employer, we created various bonus programs that included half-day and full-day paid time off. These programs also included various small ticket gifts and lunches. After working on large projects, Fridays were reserved for a staff lunch where we were able to joke and relax a bit more. All of these led to great increases in morale.
• Transparency is key: Communicate with your staff about why the lay-offs occurred and what the company is doing to right the ship. While losing co-workers is hard, employees like to see what is happening with the company and see ways to help the company become more profitable. Also openly discussing the situation allows people to ask questions and raise concerns in a non-threatening environment.
• Recognition counts: Everyone likes to be recognized for a job well done. During this time, make sure you talk to people who are putting in extra effort and thank them for it. Don't forget that keeping the business running smoothly during this time of upheaval can be the biggest accomplishment, and recognizing anyone who is helping in that vein is very important.
• Keep educating: When budgets are slashed, training can be one of the easiest areas to economize on. While you may not be able to send your staff to a company retreat, bring experts in to talk about certain situations. As Ms. Garone points out, having staff members lead in-house training sessions can be very enlightening. Look at the talent you have within the company or staff unit, and give those people a forum to teach others.
• Promote a good work/life balance. After a layoff there are fewer people to do more work, which can lead those who are still around to lose the balance between work and home. While it is important to keep your staff working while at work, remember that the stress they are facing at work can spill over to problems at home. Be sensitive to employees' needs to help out at home or take time out of their day to address some personal needs. By being compassionate, your staff will be understanding as well.

Furloughs

Living in the capital city, I hear a lot about what the state government is doing about the current economic downturn. Here in the heart of the city, many of my neighbors and friends are state employees. Recently, the state has put most of their staff on a two-day-a-month furlough. In the past, many employers furloughed workers when needed. But in recent years, furloughs have been replaced by lay-offs and reductions-in-force. Furloughs can be a great solution for handling a slowdown, allowing you the ability to bring your staff back to full-time hours once the economy picks up.

Yesterday the Wall Street Journal had an article about how furloughs are being used. In the article by Dana Mattioli and Sara Murray, they discuss how companies are furloughing staff.

While many companies still choose to lay-off employees, a furlough can allow the employees to stay on as regular, salaried employees with the same benefits and wages. With the state's furlough, the employees are working two less days a month, which in effect is a 10% reduction in pay. While many people are moaning about bringing home less money, the other option is cutting staff. Most employees don't want to potentially be the 10% of staff laid-off.

Saving money monthly in wages is an attractive option for many employers, and the ability to end the furlough when times are better allows the staff to stay whole. This also allows you to eliminate new recruitment efforts when times improve, allowing management and human resources to focus on other issues.