Recogntion Overcoming Economic Panic in the Workplace

Diarist Anais Nin once said, “Anxiety makes others feel as you might when a drowning man holds onto you. You want to save him, but you know he will strangle you in his panic.”

The same is true in the workplace. As employees become more fearful for their livelihoods, their performance and productivity begins to suffer. Such an attitude can quickly become infectious throughout an office or team. These fears are being fueled by reports such as Watson Wyatt predicting 30% of large corporations have reduced their pay budgets and Hewitt Associates finding that 42% of executives at large corporations plan to decrease pay raises by 1% (per Workforce Management).

Overcoming the effect of this reality is critical for current and future success. Gallup recently issued a report in which their leading analysts said:

“Great companies see tough economic times as an opportunity to double down on their investment in people.”

Why? The article goes on to report:

“Gallup’s most recent meta-analysis revealed that compared to the least engaged workgroups in a company, the most engaged workgroups have 62% fewer accidents, 51% less theft and breakage, 51% lower turnover (for low-turnover firms) and 27% lower absenteeism.”

Towers Perrin reiterated this need in their recent report: Managing Amid Market Turmoil. The report highlights the need for more effective leadership to overcome panic: “In times of stress, employees need and want a closer connection to their leaders, and need to see and hear from them more than ever.”

We are seeing this effect among our global clients using our strategic employee recognition programs. In the week before Thanksgiving, one of the worst weeks in the crisis to date, our Recognition Index showed when the Dow plummeted to all time lows and many economic indicators such as the Consumer Confidence index showed deep fear and retrenchment in the economy, we had a significant and unexpected spike in number of employees on our platforms being recognized for their efforts.

Our clients clearly understand the need to positively reinforce, encourage and motivate their employees in these uncertain times. They are slaying panic in their organizations. Are you?