Monday, September 21, 2009

Motivating Employees in a Tough Economy

Most companies have cut costs in 2009 through a combination of layoffs, hiring freezes, educed employee training and reevaluating various other HR programs, according to a 2008 fourth quarter study by global consulting firm Watson Wyatt.

With the deepening recession, widespread layoffs and mounting financial crisis, motivating employees in 2009 may seem like an impossible task. The importance of motivating employees in this economic environment is more critical than ever for your company's long-term success. Employee surveys can play a helpful role in understanding the deeper reasons employees are unmotivated and disengaged. Even in a tough economy when budgets are tight, investing in your employees can have both short-term and long-term pay offs in increased levels of commitment and productivity.

In stressful economic times, especially if layoffs or cutbacks are a reality or a risk, giving your workforce the opportunity to voice their concerns can have a profound effect on morale.This recently published article from Wharton University of Pennsylvania examines the issue. In a paper titled, "Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices," the stock returns of companies with high employee satisfaction are compared to various benchmarks -- the broader market, peer firms in the same industry, and companies with similar characteristics. Research indicates that firms cited as good places to work earn returns that are more than double those of the overall market.With those kinds of returns, investing in employee satisfaction should be a no-brainer, yet management is sometimes slow to realize the benefits. Insightlink can help you. Investing in an Insightlink 4Cs Employee Survey and taking positive action with our 4Cs Action Planning Guide can be a bridge to higher profits as well as tool for improving employee satisfaction.

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