Making Investments in Employees Today Will Catapult Companies Later
Bucking the "No Spending" Rules of a Recession, Leading Companies Are Investing More than Ever in Their Workforce.
(Vocus/PRWEB ) June 24, 2008 -- Bucking the "No Spending" Rules of a Recession, Leading Companies Are Investing More than Ever in Their Workforce.
What: The first reaction when looking at a possible recession is to stop spending. However, forward-thinking companies are bucking this trend, opening their purse strings on programs that invest in their most valuable asset: employees. Studies show that employee engagement efforts have a real and measurable impact on the bottom line. Towers Perrin reports that companies with high employee engagement show a 19.2 percent increase in operating income, while low-engagement companies show a drop of 32.7 percent. With a potential 50 percent differential on the line, engaging employees is simply a smart place to invest, particularly in recessionary times. Interested in the how? See Globoforce's five tips to managing engagement in an ailing economy below.
Who: Globoforce Vice President of Global Strategy Derek Irvine, an expert on employee recognition strategies, is available for interviews and offers the following advice: "As the state of the economy continues to be in flux, companies and employees alike are trying to figure out how to weather the storm. Most organizations are trying to avoid layoffs, and in fact are trying to figure out how to boost morale. Strategic employee recognition programs are a powerful means to achieve that end, as they keep employees engaged and productive. Moreover, these programs can help companies focus their employees on core business values, which can align an entire workforce toward a common goal and ultimately impact performance."
Tips: The Five Tips to Manage Employee Engagement in Tough Economic Times:
1) View employees as assets, not costs.
Employees are not only assets, they are also stakeholders in the success of the company. By engaging them in their work and in the company, leadership can derive additional value from their efforts.
2) Let employees know they make a difference.
In a stressful and uncertain economic environment , it becomes critical to reinforce the difference employees make every day in helping the company continue to meet and exceed its goals. An effective way to communicate this is through a strategic recognition program that explicitly links company values and goals to the employee behaviors and actions being recognized.
3) Counter employee confusion and discontent over actions such as layoffs or reorganizations with constant communication.
During an ailing economy when employees tend to focus more on personal concerns for job security than on the task at hand, keep all employees - not just star performers - engaged in their daily efforts by communicating clearly the reality of the situation, but with a tone of hope.
4) Boost performance through recognition when merit increases become cost prohibitive.
After reducing annual increases to the minimum, companies can ensure the psychological contract with employees is maintained by reinforcing their value to the company with a well considered recognition program. Such a program feeds an employee's need for Psychic Income™, which is the additional value they derive from increased social acceptance, self-esteem and self realization.
5) Optimize strategy execution through reinforcement of effective implementation steps.
A tough economy removes the cushion companies have become accustomed in times of growth. There is no longer any margin for error or even delay in executing on a company's strategic objectives. A recognition program based on the company's strategy helps employees clearly understand the goals and encourages and rewards them for effective implementation.
To arrange an interview with Derek Irvine, please contact the following:
CONTACT:
Tim Rossi
timothy.rossi@globoforce.com
508-229-1543
Kim Miller
kmiller@tieronepr.com
617-610-0583
About Globoforce
Founded in 1999 and co-headquartered in Southborough, Massachusetts and Dublin, Ireland, Globoforce is the world's leading provider of on-demand, global, strategic employee recognition solutions for Global 2000 companies. Globoforce delivers an innovative, easy-to-use, on-demand software solution that engages employees across the globe, transforming the way enterprises motivate their workforce. Globoforce's blue-chip customer base, which includes Avnet, Dow Chemical, Global Crossing, Fairmont Hotels & Resorts, Intel, Intuit, Nortel, Procter & Gamble and Thomson Reuters, reflects the importance of recognizing and engaging the workforce in the 21st century. For more information, visit http://www.globoforce.com or visit our blog at http://globoforce.blogspot.com/.
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