Surviving the slowdown

From the substantive ones like restructuring for greater variable pay, shifting to long-term rewards, cleaning up non-cash benefits, removing bottom performers and deferring salary increases to the more symbolic ones like stopping the elevator, switching off the air conditioners, rationalising bus routes and reducing the food subsidies, organisations are implementing an unending list of ideas to survive the slowdown.
While organisations genuinely affected by the downturn might need to do some of this, others that are not as badly affected seem to be using the overall mood to just get more efficient by shedding jobs, cutting costs and pruning the flab.

The last two decades have seen many organisations embrace progressive HR practices and commit costs that cumulatively attempted to demonstrate the value of employee care and respect. This in many ways also contributed to better employee relations and a dramatic reduction in any form of collective action.

As the entire globe reels under an economic crisis, organisations are seeing the need to cut some of these costs and become lean. As they begin to act they realise that axing today’s costs is not enough. They realise that they need to change at a cultural level by embracing the new values of prudence and austerity.

Are organisations doing it in a manner that will elicit appropriate emotions and actions from employees and integrate the organisation and create a new commonly held cultural identity? I am afraid not. In attempting to respond to difficult times, organisations are inadvertently abandoning the value of employee care instead of reinterpreting it. Let me explain this. If through their actions organisations are able to demonstrate to their employees that they continue to care for them but are merely unable to display it through monetary and material means that would mean reinterpreting the value of care. If on the other hand, employees do not even experience care in these difficult times, it would reinforce their belief that organisations have abandoned the very value.

Here are three things that organisations must pay attention to, to reinforce the value of care:

1. Ensuring basic standards in the employee’s daily work life

The employee’s daily work life gets him/her to directly experience many of the basic policies and facilities of the organisation and through that the value of care. HR professionals and CEOs must act as custodians in ensuring basic standards in these areas.  Overcrowded buses, unhygienic toilets and an unresponsive and inaccessible HR team do not show that we care.

2. Ensuring a fair appraisal experience

The annual performance assessment is the most important moment of truth in the employee’s work life. While the 2009 appraisals may not lead to great reward outcomes, the minimum we can offer our employees is an appraisal experience that demonstrates fairness, transparency, respect and openness. 

3. Ensuring a healthy managerial relationship

If we ensure that our managers are respectful and fair we can demonstrate that we care.
 
The good news is that employees of today understand the business context far better and are quite willing to make a few sacrifices even as their organisations struggle to get back to the pink of health.  However, winning their support and retaining the soul of the organisation will depend on the cultural awareness and psychological mindedness of Business and HR Leaders.

 Posted By: Pallavi Singh

                     PGDM III SEM, 'B'