NEW ORLEANS – A new poll of human resource executives has found that the biggest problem companies face following a round of job cuts is the effect it has on the morale of those employees who remain.
The poll - conducted by outplacement firm Challenger, Gray & Christmas Inc. - found that 54 percent of H.R. executives consider keeping employees engaged and productive to be the top challenge after layoffs are announced.
The second-biggest challenge, chosen by 23 percent of respondents, is easing the anxiety those employees feel at the possibility of more layoffs.
The survey results were released today at the annual meeting of the Society for Human Resource Management in New Orleans.
“Companies that focus on output will create a work force that is motivated by fear of job loss instead of by loyalty and pride,” John A. Challenger, the firm’s CEO, said in a statement. “That may work for the remainder of the downturn, but as soon as the recovery begins, the company will undoubtedly experience heavy turnover.”
Despite the reduction in head count that results from layoffs, only 15 percent of those polled said maintaining productivity with fewer workers was their biggest challenge.
Businesses have announced 1.6 million job cuts over the past year, according to figures compiled by Challenger. The federal government says about 6 million jobs have been lost since the recession began in December 2007.
“You cannot simply tell employees to ‘do more with less,’ ” Challenger said. “There must be a back-and-forth dialogue to address employees’ concerns and fears. They must be an active part of the problem-solving process. And, in any situation, honesty is the best policy – employees deserve up-front communication when it comes to the state of the company and their jobs.”
Fifty-eight percent of poll respondents said department heads meet directly with the remaining employees after layoffs occur to answer questions, but only 12 percent provide counseling, according to the poll results. Roughly one in 10 said they do nothing at all.
“Companies recognizing that employee engagement is the key to continued quality output [that] will not only survive the downturn, but will be poised to thrive when the expansion begins,” Challenger said.