Checklist: Improving Employee Engagement in a Down Economy 

When times are economically tough, employees become distracted and anxious about their futures, which can adversely affect a company's retention. Employees who are distracted by the financial unknowns a weak economy creates are more likely to deliver poor customer service, be less intellectually engaged in their jobs and even make plans to leave.

Employees' attitudes will decline in uncertain economic times, but there are things management can do to improve those distracted, concerned mindsets. According to Sirota Survey Intelligence, companies should take the following steps to ensure their retention rates remain stable even during the most unstable economic times:

1. Build a "partnership culture". Companies with a "partnership culture" consistently outperform their competitors during both boom times and downturns. A partnership culture is characterized by 12 hallmarks, including basic trust; a long-term perspective; joint decision-making; open communications; financial sharing; and equitable day-to-day treatment.
2. Create, communicate and then exhaust "rings of defense" before downsizing. Employers with the highest rates of retention are those that treat their employees as true partners and make every effort to avoid layoffs. The key is employees having trust in management; they need to trust that management is being absolutely open and honest and is doing everything it can to cushion the blow. When it does become necessary to reduce costs, many steps can be taken as an alternative to involuntary layoffs. These are what Sirota calls the "rings of defense."
3. Focus on the local behavior of immediate supervisors and managers. Simple management behaviors such as giving timely recognition to employees, supporting their continued development and providing coaching and guidance mea a lot to employees--especially when they are anxious. During tough economic times, it is even more important to be consistent between words and actions and to create an environment where everyone is respected.
4. Pay more attention to high-potential employees, who are most likely to leave during difficult times. Even in a tough economy, high-potential employees have other opportunities. Consider developing a retention strategy for high-potentials that includes a strong focus on career development.
5. Create ways for all employees to contribute to the company's efficiency and effectiveness goals. One excellent mechanism is gain-sharing efforts, which is a method for sharing gains with employees--the gains that employees themselves achieve for the organization.
6. Don't exclude employees from assisting with possible solutions. Management often keeps plans and information very close-to-the-vest during difficult times. Communicating openly and asking for help in developing actions to be taken helps minimize feelings of powerlessness.
7. Don't stop performing periodic employee assessments. Companies need to assess how anxious their employees and leaders are feeling about internal and external issues, and how well their culture and management practices are buffering. Monitor workers' stress levels, their perceptions of their workloads and be on the lookout for burnout.

Reprinted with permission. © CCH