Your team’s morale and loyalty are being tested as a result of layoffs, pay cuts, and tight budgets, while typical incentives like bonuses and salary raises are unavailable. Here are some suggestions for keeping your employees loyal and motivated without incurring additional costs.
It’s simpler to encourage and enthuse individuals during boom times since there’s always the prospect of a bonus or promotion. When cash flow is tight and the danger of having to decrease the workforce is always present, the picture changes dramatically. When decision-makers feel threatened and are constantly under the stress of being responsible for their own livelihood and that of all those who work for them, it is all too easy to make decisions that may appear to be correct in the short term but have far-reaching negative consequences for themselves and their workforce.
There is always a contradiction when things are going well economically. Money can be used as a primary motivation by team and organizational leaders. The bonuses were sometimes mind-blowingly large. Staff were persuaded to believe that meeting targets would result in cash incentives, and this appeared to retain well-qualified and capable employees on the payroll. The reality, according to many of my employees, was quite different. When there is lots of work available, people feel secure, knowing that they can always hunt for and find another job if things get rough at their current job. They may be more devoted to themselves than to their company. When unrealistic bonus expectations are set, it can lead to enormous demotivation and a loss of capable employees to other companies.
Having experienced, motivated workers who are as committed to making the firm a success as the Senior Management Team is critical in times of financial crisis. As the rivalry becomes increasingly fierce, the teams that collaborate creatively and cohesively will emerge victorious. If organizations are to thrive in the long run, they must have high morale, excitement, and crucial skills and abilities. Money is scarce, and the security of having a job in the short term is insufficient to ensure that your company is prepared to weather the storm and expand once the crisis has passed.
There has been a great deal of research on what inspires people. Money is a consideration, although it is rarely first on people’s minds.
Here are my top 10 guidelines for ensuring that your workforce develops excitement and dedication; they work just as well at the departmental level as they do at the corporate level.
1) It is critical that employees believe in the organization’s mission.
Individuals will experience stress and discontent as a result of a misalignment of values between the corporation and the workforce.
- How well-known is your company’s future vision, as well as its purpose to achieve it?
- How can you get your staff involved in defining and implementing your values across the firm or department?
2) Be trustworthy
Trust must be earned, and trust between the leader and those who are led is essential. When everything is in place, the team will be able to tackle even the most difficult situations collectively. The future is grim without it. We live in an era when politicians and many business executives are deceitful or sparing with the truth. It’s nearly tough to re-establish trust once it’s been shattered. People aren’t as frail as you may believe. Being truthful does not imply being ruthless. Even if the message is unpopular, stating the point plainly and being upfront is significantly less detrimental in the long term than attempting to make things appear to be something they are not.
3) Maintain Consistency
Dealing with inconsistencies in expectations or signals, or people who swing back and forth, develops a debilitating sense of insecurity. Making decisions should be done in a consistent manner. Staff should have confidence that choices are made for the proper reasons and that they will only be revised if there is a valid justification for doing so. It is never appropriate to be moody or have favorites on a team. In a successful team or company, ego has no place.
4) Recognize and appreciate each individual’s contribution
Feeling appreciated as a person by the organization’s success is frequently rated as a more effective motivator than money alone. This must be done from the heart rather than through a mechanical technique.
- What possibilities exist for people’ contributions to be recognized by line managers and those further up the chain of command?
- Who recognizes when people are working hard or when they are doing a good job?
- Is it just accident that your company values its employees, or are managers trained to foster this trait?
5) Give employees a voice that is heard.
When employees are under a lot of stress, it’s because they believe they have little influence over what’s going on. Providing people with the opportunity to speak up, to be heard, and to have a true voice in what happens can greatly reduce stress and discontent.
Many choices are made without consulting the people who perform the work on a regular basis. Using their knowledge, experience, and expertise can help you save time and money. It makes so much sense on so many levels, but it is frequently overlooked.
6) Establish Explicit Realistic Goals
Expectations that are not met lead to a great deal of frustration on both sides. Only make promises you know you can keep, and be clear about what you expect from them. It is significantly simpler to conduct difficult conversations when an organization has clear, high, explicit expectations of its employees. When people believe they have been treated fairly, they are significantly more likely to learn the teachings. They can’t hide behind their outrage that things were unfair, so they must accept responsibility for their part in the circumstance.
7) Provide staff with a sense of security
One of the most basic wants is certainty or safety. Even when there is a lot of uncertainty, it is feasible to give people a sense of control and safety. The language chosen has a significant impact on whether or not individuals feel safe. Being honest and including others early in the process can be quite beneficial. The most tension is caused by not knowing and feeling as if you are being kept in the dark. What makes the difference is not so much what you do as it is how you do it. For example, redundancy is likely to cause a great deal of tension and confusion. This can be avoided by incorporating people in the conversation early on and keeping them up to date with the latest information. Providing assistance in preparing them to return to the job market makes a significant difference in their experience.
8) Involve employees in the solution-finding process.
As I write this article, a company that was on the verge of bankruptcy twenty years ago is treating its whole personnel to a weekend of celebration to reward them for their contributions to the company’s success. Over 300 individuals are expected to board the train. When the company was on the verge of closing, management sat down with the employees to brainstorm alternatives. The situation appeared to be hopeless. As a result of the discussions, everyone agreed to take a considerable wage cut rather than deplete the company of the talent and knowledge needed to bring it around. They collaborated to find innovative answers. The road wasn’t easy, but twenty years later, the company has grown from strength to strength and is well positioned to weather the current storm.
The team becomes tremendously powerful when each member takes responsibility not only for their own contribution but also for doing everything they can to help each other participate fully. Creating power teams based on this idea can happen by mistake, but with the correct training and support, it can become the norm. The cost of developing the training considerably outweighs the benefits of every team inside a company becoming a successful power team. Are you actively promoting and training Power Teams in your company?
Your employees are your most valuable asset; they individually bring unique skills and knowledge, most of which is untapped. Are you making the most of the time you have?
9) To motivate your employees, you must first understand what motivates them.
If you pay attention, you’ll be able to figure out what motivates them. The words people use and the behaviors they conduct might reveal what drives and motivates them internally. It’s a lot easier to speak their language and give them a chance to succeed once you understand where they’re coming from. Your department or company has significantly greater potential to succeed when they are flourishing professionally.
10) Never Underestimate The Importance Of Saying Thank You
Thank you notes that acknowledge people’s efforts make a huge impact in how they feel. When the person receiving the note knows it is truly meant, a simple word of thanks for a job well done takes on a whole new meaning.
In our personal life, a bouquet of flowers or a small gift in appreciation of someone going above and beyond makes us feel good, and the same idea applies in the workplace. What makes the difference is taking the time and trouble to acknowledge someone’s effort. If you’re the boss, pay attention to who is working hard, helping others, and contributing their efforts to success. The value of a thank you cannot be measured.
The majority of these ideas are inexpensive or free to adopt. It’s more about your mindset and approach. Training and coaching can be quite beneficial in getting things started, but the expenditures are insignificant when compared to the potential rewards.
Ignoring these principles will result in a disgruntled, nervous, and agitated staff that will work harder in the short term out of fear of losing their jobs. In the medium to long run, it will be the teams of employees who are healthy, happy, well-motivated, and enthusiastic who will ensure the market’s continued success.
Long after the market rebounds, the reputation your company establishes in how it deals with employees will linger on. When there is a lack of highly qualified and experienced workers, organizations that are known to care for and develop their employees will have an easier time attracting the right personnel. It’s entirely up to you!
Gina Gardiner is a top leadership coach in the United Kingdom. She specializes in cultivating leadership potential at all levels, from emerging to senior management. She is particularly interested in the topic of work-life balance. Her websites can be found at
In a downturn, how do you assist employees?
Offering low-interest short-term employee loans is one option to assist employees in this scenario, which is more likely during a recession. In most situations, the interest rate is lower than payday loans, and payments can be withdrawn directly from an employee’s salary on a monthly basis.
Lead your team to greatness:
Working together to achieve a common appealing vision helps the team to achieve the more important goal. To attain the larger goals, the team must look beyond their current responsibilities and consider the big picture.
Taking on challenging challenges might educate you that everything is difficult before it becomes simple. When you urge your team to push past its limits, you’ll soon learn that there isn’t much of a limit.
Restore its belief in the organization:
Employees should understand what you’re doing as a company and what your long-term goals are from the moment they start. Having faith in the company motivates them to maximize their abilities and do new things.
Acknowledge their hard work:
Your team’s contributions must be recognized. Even in the midst of a crisis, let your employees know that their efforts are appreciated. It is critical to thank them for their support and extra efforts in order to inspire them to perform wonderfully.
During a recession, many businesses will choose for operational cost-cutting. They choose to end team rewards and recognition programs in those situations. The continuation of such recognition initiatives, according to HR experts, can inspire employees to be engaged even during difficult times.
Learn their emotions:
Managers should be extremely concerned with team dynamics. Employees maintain their confidence and trust during a beneficial transition. Negative emotions, on the other hand, can make employees feel distrusted.
The earlier you involve your employees in the transformation process, the more engaged they will be at work. Interviewing them about their feelings on several occasions can be really beneficial in the long term.
Incorporate more flexibility :
The term “workplace flexibility” refers to more than just the ability to change office hours. We can take into account a variety of different elements in this case. Relaxing the rules for your teams can help them adjust to new situations and successfully implement a change.
Flextime, work from home, job-sharing, part-time jobs, and a reduced four-day work week are just a few of the options that can be made available in the workplace. There are plenty of other ways to keep people engaged without sacrificing your commitment to the company’s objectives.
Embrace honesty:
In a transparent workplace, teams function better. The team is made stronger through loyalty and timely information. So that they can plan and protect themselves, the teams want honesty.
In both good and bad times, communication is the finest business practice. If the occasion calls for it, you must accept that you don’t know everything. It is critical to inform your staff on the organization’s health as a symbol of respect. The abrupt termination of a workforce might result in a noticeable drop in team morale.
Furthermore, an open and honest dialogue can lead to new work methods including people who can more quickly solve difficulties.
Re-establish its confidence:
Workplaces must ensure that trust is not lost and that it is restored after a difficult period. As a manager, you must be dependable (that is, you must do what you say) and empathic (that you care about the needs of your employees.)
It would be beneficial if you encouraged two-way contact with a strong emphasis on feedback. Surprisingly, data suggest that one aspect that appears to make the largest difference in raising team morale is the level of involvement in decision-making.
Listen to what they say:
To retain a sense of balance in the workplace, you must look up and listen, just as you must have other key skills. It allows your staff to express themselves, which they might not be able to do otherwise.
Using practical listening skills demands a lot of patience. Nonetheless, you will see the good effects that aid in effective team development over time.
Involve the team in decision making:
Workplace connections strengthen when employees are involved in the decision-making process. Many businesses have abandoned the term “workers” in favor of the concept of “team members.”
Participating in the process makes them feel more personal while also uniting them. Team participation in decision-making, on the other hand, is a continuous process that has proven to be a company-wide feel-good element.
Develop from within:
When employees feel like there isn’t enough room for progress in the job, it reflects in the turnover rate. It weakens the team and gradually detracts from the business’s genuine mission.
Internal training and other enjoyable events can boost employee morale and provide additional opportunities to learn and grow at work.
During a recession, who benefits?
Question from the audience: Identify and explain economic variables that may be positively affected by the economic slowdown.
A recession is a time in which the economy grows at a negative rate. It’s a time of rising unemployment, lower salaries, and increased government debt. It usually results in financial costs.
- Companies that provide low-cost entertainment. Bookmakers and publicans are thought to do well during a recession because individuals want to ‘drink their sorrows away’ with little bets and becoming intoxicated. (However, research suggest that life expectancy increases during recessions, contradicting this old wives tale.) Demand for online-streaming and online entertainment is projected to increase during the 2020 Coronavirus recession.
- Companies that are suffering with bankruptcies and income loss. Pawnbrokers and companies that sell pay day loans, for example people in need of money turn to loan sharks.
- Companies that sell substandard goods. (items whose demand increases as income decreases) e.g. value goods, second-hand retailers, etc. Some businesses, such as supermarkets, will be unaffected by the recession. People will reduce their spending on luxuries, but not on food.
- Longer-term efficiency gains Some economists suggest that a recession can help the economy become more productive in the long run. A recession is a shock, and inefficient businesses may go out of business, but it also allows for the emergence of new businesses. It’s what Joseph Schumpeter dubbed “creative destruction” the idea that when some enterprises fail, new inventive businesses can emerge and develop.
- It’s worth noting that in a downturn, solid, efficient businesses can be put out of business due to cash difficulties and a temporary decline in revenue. It is not true that all businesses that close down are inefficient. Furthermore, the loss of enterprises entails the loss of experience and knowledge.
- Falling asset values can make purchasing a home more affordable. For first-time purchasers, this is a good option. It has the potential to aid in the reduction of wealth disparities.
- It is possible that one’s life expectancy will increase. According to studies from the Great Depression, life expectancy increased in areas where unemployment increased. This may seem counterintuitive, but the idea is that unemployed people will spend less money on alcohol and drugs, resulting in improved health. They may do fewer car trips and hence have a lower risk of being involved in fatal car accidents. NPR
The rate of inflation tends to reduce during a recession. Because unemployment rises, wage inflation is moderated. Firms also respond to decreased demand by lowering prices.
Those on fixed incomes or who have cash savings may profit from the decrease in inflation. It may also aid in the reduction of long-term inflationary pressures. For example, the 1980/81 recession helped to bring inflation down from 1970s highs.
After the Lawson boom and double-digit inflation, the 1991 Recession struck.
Efficiency increase?
It has been suggested that a recession encourages businesses to become more efficient or go out of business. A recession might hasten the ‘creative destruction’ process. Where inefficient businesses fail, efficient businesses thrive.
Covid Recession 2020
The Covid-19 epidemic was to blame for the terrible recession of 2020. Some industries were particularly heavily damaged by the recession (leisure, travel, tourism, bingo halls). However, several businesses benefited greatly from the Covid-recession. We shifted to online delivery when consumers stopped going to the high street and shopping malls. Online behemoths like Amazon saw a big boost in sales. For example, Amazon’s market capitalisation increased by $570 billion in the first seven months of 2020, owing to strong sales growth (Forbes).
Profitability hasn’t kept pace with Amazon’s surge in sales. Because necessities like toilet paper have a low profit margin, profit growth has been restrained. Amazon has taken the uncommon step of reducing demand at times. They also experienced additional costs as a result of Covid, such as paying for overtime and dealing with Covid outbreaks in their warehouses. However, due to increased demand for online streaming, Amazon saw fast development in its cloud computing networks. These are the more profitable areas of the business.
Apple, Google, and Facebook all had significant revenue and profit growth during an era when companies with a strong online presence benefited.
The current recession is unique in that there are more huge winners and losers than ever before. It all depends on how the virus’s dynamics effect the firm as well as aggregate demand.
How does the economic downturn effect management?
Although recessions typically endure only a few financial quarters, the ripple effects can linger much longer. Here are a few instances of how a downturn in the economy could affect your business:
Reduced profits
As the economy slows, customers and businesses become more cautious about spending. This means your company may have a harder time generating its typical sales, and you’ll have to decrease costs correspondingly. Businesses are less inclined to invest in new products, staff may be laid off, and overheads may be reduced to compensate for a drop in profit.
Credit crunch
Businesses and consumers aren’t the only ones that are becoming more cautious with their spending. Lenders are also tightening their belts, making it more difficult for businesses to get traditional lines of credit. Interest rates may rise, and lending conditions may become more stringent.
Reduction in cash flow
During a worldwide recession, both vendors and customers find it more difficult to make timely payments. Businesses may need to devote extra effort to hunting down invoices, delaying their own payments to vendors. Particularly for individuals that sell B2B, the situation can get challenging. It’s possible that one of your clients’ bills will go unpaid if they go out of business.
Declining stock prices and dividends
A decrease in cash flow and profit eventually shows up in your company’s formal financial documents, such as the quarterly earnings report. Dividends may be reduced or even eliminated at this point. As stock prices fall, shareholders may even demand a change in leadership.
Decline in product quality
A decline in quality is one of the knock-on impacts of a global recession. Companies are looking for innovative methods to cut expenses and enhance the bottom line when manufacturing slows and invoices go unpaid. When you can’t afford to maintain your typical standards, this may result in a temporary decline in service or product quality.
What are five methods for motivating employees?
There are a lot of unmotivated employees in the world, as much as individuals don’t like to accept it. This can be a difficult scenario for a manager, whether they aren’t motivated to do their best or just have no desire to advance in the firm.
According to a Dale Carnegie research, just around a quarter of non-management staff are totally motivated and engaged. This is certainly a problem that needs to be addressed. Why would employees work hard if they have no reason to? The solution is to incorporate basic, yet effective motivational components into your company culture. Here are five easy strategies to encourage your colleagues to give it their all.
1. Set goals and reward yourself when you achieve them.
It’s human nature for your staff to seek for a challenge. It’s easy to feel demotivated if they arrive up every day with the same menial jobs to complete with no end in sight. Setting attainable goals for your staff provides them with a tangible aim to work toward, as well as a benchmark against which you can evaluate their performance as a manager.
If employees aren’t hitting their targets, it’s time to fire them or improve their performance. Ensure that goals are celebrated or at the very least acknowledged when they are met. This doesn’t have to be lavish; a simple incentive like a team lunch or an internal email congratulating staff on their accomplishments will motivate employees to work toward their next objectives.
2. Pay attention
The sensation that their goals and needs are heard at work is one of the most driving elements for employees. This does not imply that all requests are accepted, but listening to what employees have to say is critical to employee motivation. Listen to each employee who has a concept for a new method or new ideas for their job, no matter how ridiculous the ideas may be. People want their voices to be heard, and if they are repeatedly silenced by managers who refuse to listen, they may lose interest in the business and become hesitant to work hard.
3. Give them a good wage.
You’ll need to offer your top staff a competitive salary to keep them. In some organizations, this may be easier said than done, but make sure you’re not underpaying yourself. Give them a raise if their performance warrants it; this will show them that they are respected and appreciated. Consider performance-based bonuses for individual employees or teams if you can’t afford competitive pay or raises.
4. Take an interest in their future
A boss who is interested in and involved in their employees’ future works wonders for motivation. Providing possibilities for workers to advance within your company, as well as supporting ongoing learning and development. When employees believe their manager genuinely cares about their progress inside the firm and in their career, they feel valued and important. Acting as a mentor and champion will help them gain confidence and enthusiasm for their future with your organization.
5. Establish a positive work environment
Make sure your workplace is a good place to work. People appreciate working there not only because of the excellent salary and perks, but also because it is a fun place to work. Why would people want to work hard if they don’t appreciate what they’re doing if company culture is unpleasant and rigid? You don’t need free beer every day of the week or Google Glass for everyone; simple benefits like meals, team building activities, and happy hours might be enough to keep employees motivated.
To run a profitable and healthy business, you must keep your staff motivated to work hard and offer their all. Some employees may require a gentle prodding to work more, while others will do so on their own, but in the end, managers play a critical role in employee motivation.
How do you keep employees motivated following a restructure?
If your office has just been restructured, you may notice that your team’s vitality has dwindled, which is natural given that many people may have lost friends or close colleagues, or may be concerned about the security of their own employment within the company. While they may all be working steadily, their passion is likely to have waned, and discontent may be visible. Although it will definitely be a trying moment for everyone, it is critical to re-establish a pleasant work environment in order to boost productivity, employee engagement, reduce turnover, and ultimately achieve a happier workforce.
Keep in mind, if you’re a team leader or manager, that your team’s morale begins with you. If your personal morale is poor, you must first focus on improving your own mood and outlook by recognizing the source of your low morale, becoming organized, and setting yourself attainable goals. It may be difficult, but work hard to retake control and begin thinking positively; if you want to successfully mirror this mindset onto your team, the shift must originate from you.
It doesn’t take much to develop a close relationship with your staff after an office reorganization, but it can assist to re-establish trust and a good rapport. Remember that one of the biggest causes of low morale and decreased productivity is a lack of appreciation and acknowledgment. You can reconnect with them by recognizing them for good work, organizing team outings, or simply strolling around the office and approaching them, rather than waiting for them to approach you or conducting all communication through email. Your staff will be inspired to work to their full potential and feel satisfied doing so if you provide regular feedback and benefits when they are properly merited.
After you’ve let some of your employees go, you’ll want to make sure you’ve kept the ones who will help your company the most. You can establish a more effective team as well as raise morale by giving employees the opportunity to develop or upgrade their talents. This will make the team feel more devoted and secure. Make sure your team is aware of the company’s goals and what you anticipate it (and them) to achieve in the near future when scheduling skill development courses or meetings. This will help to motivate your employees and urge them to consider how they might use their skills to benefit the organization.
Rumours can spread quickly after an office restructuring, and when you’ve worked so hard to boost morale, the last thing you need is idle gossip to reignite fear and send it plummeting. To avoid this, make every effort to keep your team informed at all times; provide accurate, timely information wherever feasible, especially if it may effect them in the near future; it is preferable that they hear it from you rather than from others. Devote time to holding regular and if possible weekly meetings with your employees to keep them informed about the company’s success. Remember that communication is two-way; as much as you need to contact them, make sure they know they can come to you if they have any questions or concerns.
Once you’ve rebuilt your team’s morale and are on your way to effectively reversing the effects of recent redundancies, you’ll need to concentrate on keeping it high and inspiring your employees. Even when things are going well, morale can be harmed, but by following the above tactics, you can try to restore it when things go wrong.