The Beacon Blog

In the current turmoil of the economy, many businesses are forced to make major  decisions that may negatively affect the overall morale their employees.  Unfortunately, these decisions are necessary to keep business afloat in such an economy.  Now more than ever, we are seeing layoffs, hiring freezes, organizational restructuring, reduction of benefits, the list goes on and on…

Overall, companies are juggling to control costs while still maintaining positive employee morale. Employees must be informed and recognize that a down economy is a natural part of the business cycle. Always remember that even in a down economy, investments are still assets…they may lose value and fluctuate, but they will never entirely disappear.

Employees are wondering many things, and amongst those most important is retirement planning.  “How does the economy affect my investments made to 401(k)?”

The 401(k) deduction is a specific percentage applied to the actual income received by a certain employee. Therefore, when an organization decides to cut an employee’s pay,
401(k) contributions will decrease as well. Many organizations have stopped matching their employee’s 401(k) contributions, and some have even adjusted their contribution levels.

A 401(k) is a long term investment that must be carried out with a long term view and goals.  Employees are encouraged to design their own investment strategy around their personal goals and objectives, and to always remember that regardless of the economy,
investments are assets.

Continuing with the eight deadly vices of Human Resources and business, wrath is defined by the Encarta dictionary as great anger; strong anger; often with a desire for revenge.

Wrath is a deadly vice because of its potentially damaging effect on the relationship between a manager and employee. If a manager exhibits wrath, it could cause a breakdown in communication. The employee may begin taking extreme steps in eliminating the chance of angering their manager.  Therefore, all emotions must be expressed appropriately in the workplace.

An example relevant to wrath can be found when looking at the function of a dam, ironic considering the amount of rain we have experienced in the past month or so.  If more water is behind a damn then it is able to hold, overflowing and bursting will occur.  This will cause a flood below the dam.  Water is energy, and anger is energy…both obeying the same physical laws of nature.

In order to stop their “dam” from overflowing or bursting, a manager should be mindful of the effects his or his anger plays in an organization, and learn to control it.  The manager
should listen more and learn to speak less when angry.  And ultimately, apologize if necessary to repair the working relationship.

A perfect method that managers can use to control their anger is the See-Feel-Need method. Through this method, one is able to commendably keep check of their wrath.  It works like this:  “I see what happened…” and then explain their view of the situation.  “This makes me feel…” and then the manager should describe feelings about the particular
situation.  The last part of the method is Need…“I need from you…” and then figure out a plan to rectify the situation.

Good management is: effective communication, motivating employees, and directing work
efficiently and economically. Controlling wrath will lead employees to be more productive, and will result in a more effective leader.

Continuing with deadly vices of Human Resource and business, Inconsistency is defined by Encarta Dictionary as containing conflicting or contradictory elements.

Employees are not always the only ones to be blamed for inconsistency, as often it starts with employers – although most may not be willing to admit it.  Inconsistency in an organization will surely kill overall morale of employees who are negatively affected, and can lead to feelings of unrighteous superiority to those who benefit by these inconsistences.  It is important to ensure that employees are treated fairly and equally with some components such as the metrics established to gain ranking or the requirements for promotions.

For example, the owner of an organization hires his or her family and immediately offers higher pay, better benefits, and special treatment than any other employee.  In these cases, the family member isn’t always qualified enough to be given such compensations, but due to the relation is given different treatment.  The word that sums this point is nepotism.

Another point to be aware of is that all your managers are trained effectively to avoid one department’s treatment handled differently than another.  For example, if you have a manager that does not understand the metrics in earning a merit increase they may be awarding increase where they are not deserved.  This leaves other departments feeling de-motivated when they are working hard and not receiving fair compensation.

Low morale means low productivity, increased sick leave, and possible medical incidents.  Inconsistences in the work place are sure to lead to stifling motivation.  Your best bet would be to turn to outside intervention.  It is crucial for employers to recognize that they could be acting inconsistently and unfairly to their employees as a whole.  Once changes are made, success will surely increase substantially…internally as well as externally for all involved.

Let’s face the facts; employee retention can be a key
challenge for employers.  Offering employees with a comprehensive benefits package proves a sign of stability of the company.  It will also play a key role in employees’ overall satisfaction at the work place, thus resulting in optimal success.

First and foremost, it is recommended that employers ask
their employees what’s important to them, which will cover not only the “needs,”
but also the “wants” desired.  This will surely build loyalty and commitment, as well as keeping an open line of communication.

At this day and age, potential employees rank a comprehensive benefit package just as highly as their potential salaries.  One may think that a benefits package includes only health insurance, retirement plans, and life insurance. However, there is much more an employer can offer to improve inclusive productivity.  Employers are in competition for the best employees, the following list includes other possible benefits to attract the finest staff:

-Bonus options: including performance, attendance, discount stock plans, or longevity bonuses

-Paid time off: including well pay, mental health days, floating holidays, or paid sabbaticals

-Education and development benefits:  tuition reimbursement or career planning.

-Food: free coffee or juice, offering free lunches periodically

-Family benefits: including child care vouchers or information about quality daycares inthe area

-Relocation expenses

Added benefits are an effective tool for employers, but they must be communicated clearly to employees to be truly appreciated and utilized.  This communication also includes physically showing how much their benefits actually cost, as well as the rise in costs every year.  Having an “open door” policy regarding added benefits will allow every person in an organization the comfort of knowing they are valued.

Overall, employee appreciation is a very important strategy to improve your business.  From the lowest rung on the ladder to the top, all people in an organization will
perform at optimal performance if given proper recognition and respect.  Think about what else you can offer employees, and do some in-depth research. You’ll be surprised at how cost-effective minor perks can be to your company.