Employees 'hanging tough' through recession

Leadership Management Australasia managing director Grant Sexton (left) and Dunedin manager Bruce...
Leadership Management Australasia managing director Grant Sexton (left) and Dunedin manager Bruce Wood. Photo by Craig Baxter.
There is no denying that things have been tough lately. Front-line managers have been squeezed to make cost savings. Leadership Management Australasia managing director Grant Sexton tells business editor Dene Mackenzie that employees have not hit the panic button.

Front-line managers were "beaten up a bit" in the past 12 months as the recession took hold across the world, according to Leadership Management Australasia managing director Grant Sexton.

New findings from his latest Leadership, Employment and Direction (Lead) survey revealed how deeply employees in Australian and New Zealand organisations had internalised the difficult current economic circumstances.

However, instead of throwing up their hands in horror and fearing the worst, there was a new focus, a renewed sense of purpose and commitment and, importantly, a level of trust and engagement not seen for some time, he said.

"At the same time, employees haven't hit the panic button. Instead they are hanging tough and prepared to fight through the difficult times with their bosses," Mr Sexton said.

"The good news is that the Aussie-Kiwi fighting spirit is showing through."

What concerned Mr Sexton, who was in Dunedin to run a seminar with LMA Dunedin manager Bruce Wood, was the early results of a recent survey which showed the number of people considering changing jobs "going through the roof".

As the recovery continued, and companies came out of the tough times, some employees were saying enough was enough, he said.

They were faced with no overtime or raises and were not included in talks about the future.

He urged companies to take their top people aside and reassure them about their future.

The survey, although only indicative in its early stages, showed that one in three people had received no reassurance about their future, one in three had received some and one in three had received a lot.

Sometimes the first response to tough times was managers cutting 10% of staff to save costs.

When things improved, those same businesses often struggled to recruit good staff as word had spread that the company was tough to work for.

"People go where they are wanted and stay where they are appreciated.

Business leaders are so focused on surviving they have forgotten the soft stuff like asking people, `How was their weekend?'."

Asked if managers were just paying lip service to their employees by having discussions and then not taking any notice or taking action, Mr Sexton said times had changed since the managers of the 1980s sacked at will.

There was a "genuine movement" towards greater consultation in the work place.

"I'm optimistic that people are working together, talking through the issues and managers are not putting people off as a first option. It's a good sign."

Employment specialist company Robert Half said employees would help a business through tough times if they could see authenticity from their leaders.

In a podcast on employee engagement, Naomi Simson, chief executive of gift business Red Balloon, said employees would question why they were being cut back if they saw the leader of an organisation getting a brand new car and being "very flashy".

If cuts had to be made at work, employers should also ask staff to suggest possibilities.

"Authentic leadership doesn't necessarily mean being nice to people all the time, but it does mean having a clear vision and sense of purpose.

"You want to be able to trust and believe in your leadership, that they know where they're going and that you're going to sign up to that programme."

The next level was an emotional connection which meant employees believed in the organisation and trusted the people leading it, she said.

"There has never been a better time to recognise people. We have so much research to say 'Look after people and they will look after you'," Ms Simson said.

 

Add a Comment