The concluding financial year is witness to huge job losses all over the world. Obviously, any management finds difficult to keep its entire team intact when there are no buyers for its products. During such a phase, one has to think deeply of the impact of cutting an employee’s salary in the long-term interests of the Company and its survival. But the best solution to beat the market slowdown, according to a study conducted by the American Management Association (AMA), seems to be the other way round- “Invest in Employee Fun.”
We have seen the market slow down in the year 2000 dot com bubble and again in the economic recession of 2007. Is your organization ready for the next market cycle?
According to a survey conducted by AMA, a people-centric organization has very minute chances of being prey to such fluctuating market cycles. So, let’s examine the four steps of a People-centric management’s fun-filled environment and its impact on its staff in adversity.
1. Link Your Customer to Employee Satisfaction: In the present market, customer service issues cannot be taken for granted. But, since it is impossible to satisfy a customer by a freaked out employee, a successful organization should first satisfy its employees before aiming for customer satisfaction.
Example: Beryl Companies, an example of a people-centric organization, gave 70 percent of its workforce a salary hike during the economic crisis.
2. Initiate Employee Forums: Sometimes, it’s easier for employees to open a book rather than open out their hearts. But it’s only an organization which facilitates an open dialog that helps make its employees feel great, motivated and safe. In such an environment, should layoffs ever occur, your employees would feel that you tried your level best to retain them.
3. Communicate Company Goals to Your Employees: A people-centric organization lays the foundations of beating an economic downturn years before by entrusting the responsibility of the Company’ goals to its employees. By virtue of those employees who were entrusted with the responsibility of the Company’s finances, excessive expenditure is cut down long before any downturn occurs.
4. Invest in Employee Training: Employee training is very crucial in a people-centric business. Though it seems a costly investment, the profits are encouraging because an employee’s daily routine work is connected with organizational strategy and enhances employee performance and client retention. Thus, employee engagement and an improved work culture helps an organization withstand an economic downturn.
Lastly, don’t forget AMA’s advice: “Don’t let the market dictate your culture.”
Do share your thoughts on the same.