Employers reveal how they keep workers positive

Think about what your employees go through these days.

If you look at the state's economic indicators, 70 percent of them owe more on their homes than the properties are worth. A full quarter of them could have spouses or partners who are unemployed or underemployed. And those financial troubles bombard them before they even set foot in the office, where they hear the near-constant thrum of water-cooler talk revolving around declining company sales and gossip about potential wage freezes and layoffs.

It's enough to paralyze even your best performers.

A recent unscientific Review-Journal business survey shows employers are increasingly getting that message: More than half of respondents said they made major efforts in 2009 to improve employee morale on the job.

As for the rest -- those Grinchy types who think their employees should just be happy to have jobs -- it's time to consider a similar proactive approach, said Doug Beckley, chief executive officer of The Beckley Group, a management consulting and business training firm in Las Vegas.

"Morale right now is kind of low, and there's not a whole lot of gratitude about being employed, even though we think maybe there should be," said Beckley, who didn't participate in the survey but agreed to provide feedback on some survey respondents' solutions. "Employers really do need to be aware of how important it is to keep morale high right now. If you can increase their morale, commitment and productivity, that has a positive business impact, too."

Here's how survey participants said they're rebuilding positive attitudes at work.

COMMUNICATION UPGRADES

Keeping communication open was the most common answer among employers who elaborated on how they're keeping workers satisfied.

Being honest with workers about your company's situation and asking them for feedback might seem like an obvious suggestion, but a sizable number of managers think they need to protect their staffers from seeing the recession's negative effects, Beckley said. Such sheltering merely breeds mistrust, and it hurts a company's opportunity to improve employee buy-in of a company's situation, Beckley said.

"If you allow employees to ask questions and find out what's going on, then they feel as if they're a part of the company and they're in this together," he said.

That philosophy reigns at Las Vegas information-technology consultant NetEffect, where President Jeff Grace discusses the economy and its impact on the business in one-on-one sessions with the company's 10 employees, as well as in staff meetings both formal and casual. Grace said he emphasizes a culture of accountability and transparency, encouraging feedback on what he and other managers are doing wrong and right.

"If I could do something better, I want to know about it," he said. "That really builds a level of trust over time. With feedback in general, whether it's positive or whether it's constructive criticism, I engage them. Over time, they feel pretty comfortable communicating with me and each other."

For Uwe Rockenfeller, president and chief executive officer of Rocky Research in Boulder City, communication is better for morale than money is (though Rockenfeller did hand out 4 percent raises on average in January).

"I think the No. 1 thing is maintaining what (pay and benefits) you have and giving employees true insight into what your company's situation is," Rockenfeller said. "Be upfront with them about what things will be like in the next three months or 12 months. Reassurance and honesty are probably more important to employees than a short-term bonus check."

EMPOWER YOUR WORKERS

Few factors damage employee morale more than a lack of control over their work life. They need to know that they're part of the answer to a company's problems, and that they can play a role in rebuilding and recovery, Beckley said. Whether you're asking them to take on additional responsibilities, help finding new clients, or including them in problem-solving reminds employees of their importance to the company.

That understanding is partly behind NetEffect's efforts to give employees power at individual and corporate levels, Grace said.

For example, each service manager helps every engineer set performance goals for the month. The company ties part of the engineers' salaries to hitting those objectives. Though linking pay with performance in uncertain times might seem to foment insecurity, the pay-for-goals method actually boosts morale because it gives employees a sense that they're in charge of their destinies, Grace said.

Performance-based incentive pay is "always a good thing and a very effective motivational tool," Beckley agreed, but companies that reward for specific goals need to make sure those objectives are attainable. It might not be reasonable anymore to ask for 20 percent annual sales growth.

Grace also promised employee pay increases if they could find ways to bring more efficiencies to NetEffect. The approach worked: Even in today's tough economy, NetEffect was able to hand out "modest" raises on Jan. 1.

Most importantly, said Grace, he's developed a "compelling saga" -- a grass-roots story designed to remind employees how they can help the company achieve its broader goals. NetEffect's main narrative these days involves rapidly growing the company with improved efficiencies and new clients, and creating a more diverse customer base that will better inoculate the business from sustained economic downturns.

"The saga we have as a company is that for us to truly succeed in this economy, we can't contract. We have to expand," Grace said.

Beckley called the strategy "outstanding."

"It's better for a company to focus on doing one or two things really well, rather than trying to do 15 things half-baked," he said. "(NetEffect's) overarching story enables focus, and it provides a framework."

CREATIVE RECOGNITION

For many businesses, it's still tough to scrounge up enough cash for raises and bonuses, so it's no surprise survey respondents reported that they're adding quirky -- and inexpensive -- perks instead.

Local insurance brokerage Orgill/Singer has a hospitality committee that puts together celebrations of birthdays and hiring anniversaries, said President Eric Springall.

"Money's important, but just as important is the acknowledgement that there are things in their lives that are important, such as birthdays and other benchmarks, and on a corporate basis, we like to recognize people for their work," Springall said.

Orgill/Singer also brings in breakfast for employees every Friday, as well as occasional lunches. It has an employee-of-the-month program through which staffers nominate colleagues who've gone the extra mile or developed a great idea for improving efficiencies.

"People need to feel like they're more than a punch card, that they're part of the organization, and these types of recognition move us in that direction," Springall said. "I think (recognition) is core to developing common goals in the workplace, and I think it creates ownership. All of that leads to morale."

Inenvi, a consulting business that helps corporate entities form, has also looked for unconventional benefits. The business brings in lunch for its nine Las Vegas employees every Friday, and it schedules after-hours social events outside the office, Chief Executive Officer Doug Ansell said. Employees can bring their pets to work, and the company has maintained regular traditions such as its annual Christmas party.

"Canceling your holiday party is going to create more ill morale than it costs to actually have the party," Ansell said. "It's not even an expense. It's an investment."

Beckley agreed. Rather than skip scheduled parties, consider ways to make them less expensive, perhaps by moving them from a hotel into an executive's home or yard.

"If anything, this is the time to build a sense of team. Employees still need to be recognized for their contributions," Beckley said.

Also, be sure all your employees are on board with the extras. For example, workers who don't like the bar scene might feel left out if the company's extracurricular social activities all happen inside nightclubs.

MAINTAINING BENEFITS

With sales slipping, many business owners believe they can't sustain pay and benefits levels. But more than half of survey respondents said they're doing just that.

Projecting a bad year and using that forecast to cut pay and benefits is "punishing employees up front," said Rocky Research's Rockenfeller. And using news reports that herald a bad year ahead to tighten belts before you need to will ding your credibility with your workers, he said.

Despite a 10 percent drop in sales since the recession's beginning, Orgill/Singer hasn't laid off workers or cut pay, Springall said, and employees received year-end bonuses. They've managed to preserve existing pay through attrition and greater efficiencies, he said.

"Our goal when this (recession) happened was to basically keep everybody in the boat, and to have as many oars as possible rowing to keep the ship going forward," he said.

GIVING SLACKERS THE SLIP

Several businesses reported letting go poor performers as a way to improve workplace attitudes.

One respondent who didn't leave his name said his business has replaced mediocre employees with strong ones.

"Our people know this and it is having a great effect on increasing productivity," he wrote.

Another anonymous participant wrote that good employees received raises, while ineffective performers received pink slips.

Beckley cautioned against letting workers go just to enhance morale. He did note, though, that managers are smart to let employees know that the company can't afford poor performances in today's economy, and they need to meet minimum performance expectations if they want to keep their job.

"Firing people will never boost morale, but having an equitable, fair, trustworthy kind of structure will always improve morale," he said.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.