The importance of motivating employees during a downturn or business restructuring

Friday, 19 August 2011 12:09

Motivating employees is crucial during a downturn

Motivating employees is crucial during a downturn

The task of motivating employees is something companies should always be aware of, but there are some periods when it takes on additional importance – such as during a market downturn or while a business is being restructured.

It is always a good idea to keep your staff informed of what is happening within your organisation, even if the news is bad. Workers value knowing where they stand and trusting them with that information will help to ensure relations between staff and the senior management team remain cordial.

But the downside of your workforce being aware that the company is struggling or that you plan to make major changes to the way the business is structured is that they will worry. It is natural for people to think the worst and concerns about job security and salary levels can distract employees – and can even lead to key staff members looking for other jobs at a time you need their skills and experience most.

It is crucial that you take steps to encourage all your employees to stay focused during periods such as these. Maintaining a high level of customer service in order to help with client retention is key during times when your business is struggling, while you are also likely to need worker cooperation to achieve efficiency savings during any restructuring programme.

One of the best ways to keep staff members motivated is to ensure they are aware that their efforts are valued by the company. Simple things such as remembering to say thank you for a job well done help to engender a positive atmosphere in any organisation, but you may want to do something more tangible.

Reward schemes for employees can help to keep them enthused about their jobs and give them something to work towards. If the company has made people redundant or imposed a salary freeze, it would be both impractical and inappropriate for this kind of programme to feature expensive items – but the chance to earn gift cards or vouchers can give people extra incentive to focus on their roles in the organisation.

Such staff rewards work best when they are personalised, so try to ensure your programme has something that all your employees would value. Offering workers who qualify a choice of vouchers from a range of retailers is a good idea.

Another technique that helps to motivate employees is to present them with more stimulating work. Giving staff members with potential the incentive of a reward for completing a project that will really stretch them is a great way to keep them interested.
 

 

Comments

blog comments powered by Disqus

Finance articles

  • Top 5 uses for employee incentive schemes

    A well-designed incentive scheme for employees is a good way to motivate staff and help your company move towards its goals. There are a number of different ways they can be used and, if you pick the right ones, you will find such programmes are a cost-effective way to improve performance.

  • Low cost ways to improve employee benefits schemes

    Opportunities to reward your workforce will be in short supply if your company has been hit by the recession. However, there are still some small steps you can take to improve employee benefits packages without putting too much financial strain on the business.

  • Why set up a staff retention scheme?

    Staff retention is an issue all companies have to deal with, as losing key workers is both expensive and disruptive. There are ways to reduce the number of employees who leave and not all of them will break the bank.

  • How should staff reward schemes be organised?

    With money tight in the current tough economic climate, companies are looking at alternatives to pay rises to keep their employees motivated. Among the options to consider are staff reward schemes that demonstrate to workers that they are valued by the business.

  • What do customers look for in a business?

    With many people finding it difficult to manage their finances in the tough economic climate, it is easy to assume that price is the only factor that can help attract the public to your business. However, you may be surprised to discover how important service is to customers.

View More Articles

Related stories

IFS: Recession of two halves – rich lost out first, now the poor

The IFS says the impact of the recession has affected different parts of society at separate times

New research from the Institute of Fiscal Studies reveals that initially the richest 10 per cent of society lost out at the start of the recession, but now the poorest are suffering.

Eurozone and recession send UK business confidence plummeting

Business confidence takes a plunge

UK business confidence has reached its lowest point this year, indicating a bleak second half of 2012 for the economy, a new report indicates.

IFS report says UK set for 10 more years of financial pain

A new report suggests the effects of the recession are likely to be felt for years to come

A report by the Institute for Fiscal Studies (IFS) says that the painful effects of the recession have been delayed, not avoided, and that the UK is set for a further decline in living standards.

Irresponsible bankers could face jail and 10-year bonus delay

The Parliamentary Commission on Banking Standards has published its report

The Parliamentary Commission on Banking Standards recommends that senior bankers and regulators should face possible jail sentences if they repeat the mistakes of the past.

Osborne holds firm on austerity amid economic growth signals

Osborne addressed business leaders at the CBI

The Chancellor, George Osborne told business leaders at the CBI dinner to stay the course on austerity as the economy shows signs of a sustained recovery.

GDP figures to show UK economic recovery accelerating

Official data out this week is expected to show output grew in the UK in the second quarter of 2013

The first estimate of GDP figures for the second quarter of 2013 are expected to show that the UK economy doubled the growth of 0.3 per cent in the first quarter to 0.6 per cent.

Lending to business falls by £4.8bn, BoE may extend FLS

Business lending has fall over the last 3 months, according to the Bank of England

The Bank of England's latest Trends in Lending report shows that business lending fell by £4.4 billion in the last quarter but mortgage lending is "positive, but weak."

Real wages in sharpest five-year drop ever recorded, says IFS

Real wages have fallen at unprecedented levels during this recession

Real wages have fallen at "unprecedented" levels, according to a new report by the Institute of Fiscal Studies who are trying to solve the "productivity puzzle" – why employment is steady but output falling.

Newsletter sign up

Interests

In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: