Coping the emotions

Economic downturn Head and heart

By DAVID PLINK

THE NETHERLAND The effect of restructuring on employees is profound and feeds negative feeling such as fear, guilt and anger that could lead to serious effects on the success of the organization. This is why, communication still remains fundamental in order to face and mitigate consequences of the crisis on the organisation. Interview with David Plink, Crf Coo.

Coping the emotions

“Since many organisations currently ask more from their staff, it is paramount to engage them in the organisation’s strategy and communicate clearly on the reasons for cost measures that affect them. The effect of any restructuring-whether expected or actually enforced-on employees is profound,” says David Plink, Coo of Crf (Corporate Research Foundation). Some of the restructuring effects, according to Plink: are fear of losing one’s job; relief as well as guilt for being exempt from a restructure while others are laid off; anger over a (potential) restructure; the lack of control over the process within the organisation. “These emotions often translate into negative effects on productivity; a limited commitment from the staff, overall decreased job satisfaction, and a heightened inclination to leave the organisation,” continues Plink. “Sometimes there is also ‘survivor envy’ where workers might wish they had been laid off because they now have to do all the work.”

INVESTING IN STAFF MEANS KEEPING ENGAGEMENT HIGH Plink notes, however, that these effects can be mitigated by good communication that engage with and explain to staff these changes and their potential impact. The study by Crf also found that in those countries where unions are empowered in remuneration negotiations, workers are more likely to accept salary freezes and even cuts, if their jobs are guaranteed in return. In most of the markets that Crf was active, observes Plink, spending cuts were falling on non-monetary benefits such as training and teambuilding events. “The engagement of employees will determine their fit with the organisation they work for. An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work. Given the emotions that surround the workplace in an economic crisis, the negative effects on employee engagement and the success of the organisation is obvious,” Plink further stresses. “Engagement is possible when the identity, the mission, the vision and the goals of the employee themselves match those of the organisation. These will always require active communication on the part of management”, he concludes. •

The engagement of employees will determine their fit with the organisation they work for. An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work.

David Plink, Chief Operating Officer at Crf International. He has also been the Publisher and Associate Director at Reed Business.