| It's
a great relief to be coming out of the recession, but there are
special challenges for employers, says Attorney Matthew Effland.
Employees' expectations and management's plans may be at odds—and
that might turn survivor guilt into survivor anger.
When the workplace is pressurized or uncertain? Here's
what studies show:
- 87% of employees say they are less likely to recommend their
company as a good place to work
- 64% of companies say that productivity decreases
- 81% say that customer service decreases
Current employees openly resent the potential of new hires. Why?
The survivors took pay cuts and here come the "chosen ones"
at premium salaries.
Now you’re ready to hire again though and the survivor’s
are ANGRY! What can you do about it so that productivity and performance
continue to increase throughout the company?
Effland, a shareholder at Ogletree, Deakins, Nash, Smoak &
Stewart's Indianapolis office, made his remarks at the recent Society
for Human Resource Management Conference and Exposition in San Diego.
- Many companies were hit hard by the recession
- In many companies as much as 20% of the workforce was
laid off
- The remaining workforce agreed to wage freeze
- Things are turning around now
- Orders are increasing
- The company announces no more layoffs
Good news. And yet, employees are disgruntled. Why?
- Surviving employees still feel overwhelmed
- They're still doing two jobs
- There's still a wage freeze
And then, from the employee's viewpoint, things get worse:
- The company weathered the recession, but lost key people.
- To fill these positions as the economy turns around, the company
makes lucrative offers to star performers at competitors’
companies.
Current employees openly resent the new hires. Why? The survivors
took pay cuts and here come the "chosen ones" at premium
salaries.
To minimize ill feeling, Effland says, consider the following:
1. Evaluate actions taken during the economic crisis.
Did the company freeze salaries? Were pay cuts instituted? Returning
current employees to the status quo or instituting modest increases
as the economy improves will improve the chances that employees
will be less resentful of the new hires.
2. Create new job categories for new hires. New
job categories can blunt the impact of a new hire making more money
than a current employee. It is crucial to differentiate employee
skill sets when this option is used, however, to minimize litigation
risks.
3. Hire outside contractors where possible. In
cases where high-salaried functions, such as Internet operations
or specific research projects, are not part of the firm’s
core mission, companies can avoid pay-disparity issues by hiring
outside contractors.
What About When You Become the Tree?
While you are cherry-picking from your competitors, they may be
cherry-picking from you. Here are some of the tools Effland suggests
for increasing employee satisfaction:
- Shortened waiting periods that make your benefits more appealing
than the competition's
- Stock options and stock purchase plans for employees other
than executives
- Profit-sharing
- Benefits for domestic partners
- One-on-one time with company executives
- Financial planning services
- Childcare and eldercare services
- On-site food service (including take-out meals for nights when
employees work late and don't have time to prepare a meal for
the family)
- Relaxed limits on personal e-mail or Internet use
- Bringing pets to work
- Flexible work hours, days, weeks
- Job rotations
- Job sharing
- Telecommuting
- Virtual offices
- Paid time off for volunteer activities
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