Edition 13 - December 2008
A Word From The Editor: Welcome to our final Access HR News for 2008! We are all busy finishing up for the year not to mention Christmas shopping, Christmas Parties and everything else which goes with the "Silly Season". As we are all aware the economy has changed. This newsletter focuses on managing cost cutting and ensuring your employees remain motivated to achieve their full potential. Remember with motivated people we make the company money. 2008 has been a great year, we have enjoyed maintaining our existing relationships as well as welcoming new clients and candidates to our team. We would like to take this opportunity to thank you for your ongoing support, and we enjoy working alongside you all. We will continue to operate throughout the Christmas / New Year Holidays, so please do not hesitate to contact us for assistance. Merry Christmas Everyone, and we look forward to working with you in 2009! The Access HR Team | |
Motivating Employees: Non Financial Motivators
We all understand that keeping employees motivated is good for business. But in a time where we are all looking to cut costs how can a business motivate their staff without outlaying alot of money? Abraham Maslow developed his hierarchy of needs based on research about what motivates people to work. He suggested that there were 5 levels of need that influence a person's behaviour: Basic needs - food, drink and shelter Safety needs - protection against danger, threat, deprivation Social needs - the need for belonging, acceptance, friendship Self-esteem needs - reputation, status Self-actualization - the need for realizing one's own potential for continual self-development So, how can a business provide for these needs? So, how can a business provide for these needs? Basic needs - a fair wage, a meal and rest facilities Safety needs - job security, safe working conditions Social needs - team work, interaction with colleagues Self-esteem needs - acknowledgement of a job done well Self-actualization - opportunities for internal promotions, career pathways Workplace experts explain that people want to be doing interesting, challenging work, where they have some variety, some autonomy and some control over what they are doing day to day. With a bit of thought even the simplest job can be made interesting for employees. It is important to remember that the salary may be a key factor that attracts people to jobs but to keep them and influence their performance, non-financial rewards are imperative. References: More to staff motivation than a pay packet, Quantum Edge |
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How to cut company costs and maintain a happy workforce
Most organizations are looking to limit their costs and manage these more effectively. Companies are conducting strategic reviews looking at the company structure, the way business is done and where improvements can be made. Reviews and restructures involve people; and there is currently two distinct reactions to the economic downturn. Some businesses are seeking to reduce their costs across the board resulting in staff layoffs to remain viable, whereas others acknowledge staffing shortages will remain beyond a slowing of the economy and are exploring alternative approaches to redundancy. Under recessionary pressures executives grapple with cost-reduction programs, and few companies are able to sustain benefits after three years often because of poor management. Cost reduction programs are usually ineffective due to: Companies slip into a cycle of cost reduction which is short term and short sighted. The cycle begins when management launch an initiative to identify and implement cost reductions, and end with the savings being nothing more than deferred expenditure. The organization places no planning into sustaining savings. The fundamentals are not addressed. Productivity is not improved, leadership does not change and cost-accommodating behaviours persist. Before embarking on cost reduction leaders need to identify if they are looking for a quick cost reduction, and the ultimate impact cost reductions have on their workforce. There are two options when implementing a cost reduction program; mandating or motivating. Mandating relies on a firm resolve, discipline and fear. Targets are set, the axe falls and everyone follows through on the cost cuts. Usually mandating results in the firmness and discipline resembling bullying, negative rumours circulate, insecurities build and skepticism persists. A motivational approach to cost reduction involves employees committing emotionally to the cost challenge. Motivators looks for ways to secure positive employee commitment - emotional as well as rational - to company decisions and behaviour change, promoting a culture of "proud to be thrifty". This approach communicates a noble purpose or positive theme that focuses their people on cost and value, and they generate informal momentum to encourage thriftiness. For a workforce to feel positive about tasks that are not financially rewarding or intrinsically motivating requires developing an emotional commitment to support painful decisions, applying self-disciplined behaviours beyond mandatory processes, building peer respect and support for reducing costs. In conclusion companies that undertake a cost-cutting program without a strategic plan will fail to maintain the reductions over time and risk alienating key talent. However, it is important to remember the effect of how the cost cutting program is implemented, and ask yourself - Are we forcing short term actions we later regret? References: www.humanresourcemagazine.com.au |
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Credit Crunch: Reorganizing Your CompanyMany companies are under intense pressure due to the economic gloom which has swept through the US, and is now causing problems for Australia. Reorganization within companies are becoming popular as companies try to survive the economic crisis. Reorganizing departments within your company can be a daunting task, but if properly done it can be very beneficial i.e. 'better a reorganized department than no department at all'. The first step when reorganizing is to liaise with key management and stakeholders of the company, asking and clarifying what they expect from your department, and what the current objectives of the company are. This information then needs to be explained to your employees, discussing how you have agreed to increase the productivity from the department and why this needs to be done. This is also a great opportunity to confirm with your employees the company's goals, and what clients/customers are expecting from the department. It is important to discuss with your employees what is required from them in order to meet the department's targets. Many employees are often willing to take on extra work due to motivation and to broaden their role. When changing an employees there could be legal issues, so it is advisable that you speak to a HR specialist beforehand. Consultants are also able to assist with the reorganization of departments including streamlining of roles. It is important that all parties remain informed throughout a company restructure, as change can make people uneasy. It is important to reassure them of the benefits, and to promote stability as much as possible. For assistance in reorganizing your department or for other HR advice please contact Access HR on 9544 1899. |
