Motivating Employees in this Ailing Economy

The declining state of the global economy, layoffs, unemployment, the credit crunch – all have been dominating the headlines in the last several weeks. Companies across industries and around the world are dealing with similar complex challenges due to the ailing economy. Strategically applying employee recognition across an organization can address these three common issues:

1. Survivor’s guilt – Those remaining on the payroll after a round of layoffs often feel guilty about surviving the ax. They typically need additional reinforcement of the value of their work to help them justify their status in the group.

2. More work, less motivation – The survivors are also paying close attention to how management handles the layoff and subsequent redistribution of the work. With more tasks on each employee’s desk, managers need a way to encourage strong individual performance.

3. Rampant rumor mill – The inevitable rumors of additional layoffs or restructuring further contributes to productivity and motivation challenges. Teams often suffer the most with rumors fueling backstabbing and protection of individual tasks over team goals.

Strategic recognition targets each of these challenges with mechanisms to acknowledge and reward performance, personal achievement, and team successes. The recognition program should also be used to reiterate core company messages such as key goals and the mission to keep staff focused on achievable targets. By using the tool to encourage team members in a stressful time, company leaders communicate clearly their commitment to the wellbeing and future of the employees.

What effects are you feeling from the downturn in the global markets? What steps are you taking to counteract potential performance shortfalls due to fear and uncertainty among your employees? Share your experiences in comments.