The ‘Downturn Dilemma’: Increasing performance with a reduced budget
June 22nd, 2010
By Chris Hopkins, MD
Cuts needn’t dent employee engagement levels if you communicate with care
The so-called ‘downturn dilemma’ is actually a perennial HR headache. How do you boost engagement and performance levels and get your organization competition fit, when your recruitment, and learning and development (L&D) budgets are constantly being squeezed?
There’s additional pressure now admittedly. Fast-changing policies from the new coalition government, and the likelihood of higher costs, further spending reductions and job cuts to come, not to mention the volatile economic environment, mean UK businesses really are going to have to achieve more with less in the coming year. Recent research by training company Thales found that while 79% of businesses sensibly stated employee engagement is a top priority at board level to get them through the on-going recession, 44% also said cost-cutting would take precedence over investment in L&D. Not surprisingly Thales found that companies continuing to invest in their people are recovering faster than those who’ve slashed their budgets to nothing. So how do you fill the gap between cuts and improved performance?
My immediate advice is to budget smarter, and promote your existing L&D provisions with more ingenuity and gusto. My experience when reviewing employee opinions of their employers is that many staff members don’t understand the full extent of the rewards, benefits and L&D provisions on offer to them anyway. Clear, timely communication of your reward, wellbeing and L&D policies can reassure existing employees that there are genuine opportunities for them, so long as they deliver performance now.
If you have honed down the workforce you’re likely to have retained a core of your best talent. That’s a great place to start. Prioritize your spending to leverage the skills of these promising people. Communicate creatively to keep people motivated and on-message. Telling your teams they’re the best, inspiring them with good news stories, and empowering them to drive the company forward needn’t cost very much. Also it pays to clearly signpost the career opportunities that will come to those who stay loyal to you.
Ask yourselves an important question: While the board is pre-occupied with efficiency and performance management, who is focusing on keeping the company vision, values and culture on track? Often the simple act of communicating regularly and clearly with employees can keep people engaged and motivated, even in the toughest of times.
