After several layoffs, retaining employees becomes a challenge

Q. I am a departmental manager in a large engineering company that has been downsizing through small layoffs and attrition over the past two years. These staff reductions resulted in a loss of approximately 10 percent of the workforce. Now that we are back on solid ground, we have begun to lose some of our best and most loyal employees. This week my department received another resignation from one of our strongest engineers despite trying whatever we could to keep him. Can you share any wisdom on this matter to help us out and perhaps stem the flow of others who may be planning to leave?

A. When there is a layoff everyone in the company suffers. We make the mistake of assuming that only those who were laid off are the injured parties. Those who remain with the company are deeply affected as well.

Staff reductions are a shock to the corporate system, including its culture, an negatively affect productivity and efficiency. The employees who do continue with the company are expected to take on greater responsibilities and accomplish more. Not only is there added stress but there is also guilt about not being laid off with one’s co-workers and friends.

These remaining “survivors” live with the fear that they may be part of the next round of layoffs. This is exacerbated by the fact that your company had several small layoffs instead of one big one. Employees were therefore waiting for the next shoe to drop.

For further insight into your question, I spoke with John Haas, president of Newton-based Management Strategies Group, consultants to organizations in transition.

Haas says that after a layoff, employees and managers experience extra demands and scrutiny while they are taking on additional roles for which they are often ill-prepared. In these conditions, people begin to feel exploited, overworked and underpaid. Over time their interest in and commitment to the company may diminish and they then decide, but of course won’t say, that as soon as the employment picture improves, they’re “outta here.”

Haas suggests that, while you cannot eliminate the stress and performance pressure under these reduced staffing conditions, the following ideas may help mitigate the effects:

Acknowledge the problem openly. Emphasize and assure the team that everyone is feeling the stress, it is not personal, and the group will continue to survive and improve with teamwork.
Introduce performance-based cash incentives. This offers an exciting upside pay potential and can seriously affect retention.
Change roles. Accelerate career growth and insert new energy by re-assigning people or changing responsibilities periodically.
Create short term goals. Ninety-day individual or team goals, each with measurable priorities, can help keep people focused and fresh. Be sure to tie rewards to success.
Offer personal growth support. Employees value continuous learning and competency-building through education, coaching, and specially designed mentoring programs.
Reward productive tenure. Public recognition, more frequent celebrations, new perks, awards, additional training opportunities and small group meetings with the chief executive can mean a lot during rough times.
Tell people how they are doing. Employees want to do a good job and they also want honest, constructive feedback. This is especially true when feelings of isolation and stress are felt throughout the company.
Keep employees fully informed. A clear sense of where the organization is headed, how the transition plan back to corporate health is progressing and where their own jobs contribute to this improvement, is essential to feeling connected.
More ideas are available from your own key staff members. This list is not exhaustive and you will be impressed with your employees’ suggestions.

Trying to survive through major changes at work continues to be the theme of so much research and articles because it is difficult to predict how an individual or group will react to the complex set of personal priorities that are challenged or threatened by the possibility of losing one’s livelihood. Therefore, the greater the sensitivity that you and your fellow managers can show to employees, the greater the opportunity you will have of keeping the remaining good employees for the long term.

Linda Lerner is an Executive Coach and a Human Resources consultant. She can be reached at .