Coping With Change and Uncertainty

Albert Einstein said, "The hardest thing in the world to understand is the income tax." So it is: tax time. You know, the only things certain in life are death and taxes.

We are experiencing a time of change and uncertainty in the workforce. Companies are cutting costs, laying off employees, freezing salaries and reducing pay raises. Companies are no longer able to stay on a steady course, and that is affecting employee morale and productivity.

The Workforce Amid Change and Uncertainty

Layoffs can often be counterproductive and lead to more turnover, creating anxiety among the "survivors." Productivity suffers. Thus, the roles of human resources and training professionals are important in realigning workforce strategies.

According to the Society for Human Resource Management's (SHRM) 2008 survey report "HR's Evolving Role in Organizations and Its Impact on Business Strategy," the following are the top three HR areas critical for the support of organizations:

• Staffing, employment and recruitment
• Training and development
• Employee benefits

At the same time, reports reveal that employee job satisfaction centers around things like job security, communication between employees and senior management, and opportunities to use skills and abilities.

Some leaders may decide to reduce training and development as a part of their cost-cutting strategies, thinking that training is unimportant. Training, however, is one of the things that employees need in order to feel valued and productive. Some leaders may also have a false sense of security that their best employees will not consider changing jobs during a recession.

According to a recent national survey of 1,098 working Americans, 26 percent said they would look for a new job in 2009. Thirty-seven percent said the major reason they would look for a different job is money; 19 percent fear layoff; and for 11 percent, the grass is greener on the other side. Although this survey indicates that many workers are still happy in their jobs, even 26 percent looking to leave a job is an issue if your best workers are planning to leave.

Case Study

Marisol is a midlevel customer service manager who has consistently received high performance appraisals. She is working harder than ever and working longer hours. Recently, a mandatory layoff forced Marisol to eliminate two of her team members. Her staff is reeling from the loss and struggling to fill the gap. Customer service is slipping.

Marisol has asked for leadership training, as she believes it will help her better communicate changes. The company denied her request because Marisol's VP said the company is too busy right now. The VP also told her that if she doesn't improve her team's productivity, her performance review will be affected. Marisol feels as though her company no longer views her as a top performer.

She decides to check out jobs available online, and she is surprised to find several openings in which she is interested. She applies for three jobs, and a week and half later she receives a call to interview.

Marisol ends up leaving her company and rationalizes that she is going to a job where she feels wanted. The new company promises training, and she feels more secure in her decision.

Result: Turning over even one employee can cost about one-half of an hourly worker's annual wages and benefits. Losing a member of middle or upper management can cost three to five times his/her annual salary and benefits. Average turnover in organizations is 25 percent, so you can see how this adds up. Add in the cost of recruiting and hiring, and ... well, you get the picture.

If you are a leader, considering training now is one of your best strategies.

Training and Communicating Change

Studies show that lack of or poorly communicated information leads to distrust, dissatisfaction, disengagement, and increased and unwanted turnover. Watson Wyatt's 2007/2008 Communication ROI Study reveals that organizations that communicate effectively are four times more likely to report high levels of engagement than those that do not.

Vital Learning's Supervision Series offers a number of courses to train your managers and supervisors to handle these times of change and uncertainty, leading to a happier more successful workforce. For example, Supporting Change teaches participants the following:

• Understand that the anxiety that change causes is inevitable and can be dealt with through effective leadership.
• Understand the importance of planning change carefully to give team members adequate time to provide input and become accustomed to the change.
• Better assist team members' adjustment to change by being well informed and clearly explaining the reasons for the change.
• Involve team members in the process of change, encouraging them to ask questions and voice their opinions fully and honestly.

Building leadership skills in this area builds trust in the organization, helping to retain workers during these tough times. Vital Learning's training professionals can help you assess and train your workforce. Like taxes, pressures associated with change are hard to understand, but with training and communication, recovery is certain.