Companies Motivate Their Employees during Recessional/Turbulent Times

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Companies Motivate Their Employees during Recessional/Turbulent Times

Introduction

The poor state of the global economy is hardly breaking news, yet the future still looks bleak. These conditions place significant pressure on organizations to minimize costs, maximize profit, and achieve the same or better results, often while operating using reduced workforces. Several authors have alleged that leaders and workplace factors play critical roles in eliciting employees' commitment and motivation, which can translate into higher performance, productivity, and retention. This study examined the factors that influence employees' motivation and commitment to organizational success within the context of a public corporation during an economic recession.

The recession has put great financial pressure on organizations, wh ich has compelled firms to focus on minimizing costs while maximizing profit. As a result, organizations have scaled back their services, reduced their headcount, reduced employee compensation and benefits, and eliminated or dramatically scaled back capital expenditures (Bruns, 2009: 133). These actions subsequently undermine employee engagement, trust, loyalty, motivation, and effort (Adriana, 2008: 146; Hay Group, 2008: 102; Pepitone, 2010: 89) and increase intentions to turn over (Pepitone, 2010: 365). In November 2008, Royal and Masson conducted a global study to understand how human resource strategies, programs, and priorities were being affected by the economy. Nearly 2,700 respondents from 91 countries were asked to describe their concerns about the impact of the economy. Notably, one of the top five concerns indicated by respondents pertained to engaging and motivating employees (Royal & Masson, 2009: 105). A study by the Center for Work Life Policy and Sylvia Ann Hewlett Associates found that more than three in five participants said that they were considering quitting their jobs, and one in four was actively looking for another one (Adriana, 2008: 165). These effects of the recession on employees are particularly problematic because organizations rely on a motivated and committed workforce to achieve success particularly when they are required to rely on a smaller number of employees to achieve their goals (Wojick, 2008: 205).

Further, satisfaction appears to be a problem even for the employees who remain in their jobs. A 2009 job satisfaction survey conducted by the Conference Board revealed that job satisfaction levels in the United States are at an all time low. Only 45% of American employees are satisfied with their jobs, compared to 61 % in 2009 (Gibbons, 2010: 133). According to BBC Money, 1 in 10 British is out of a job and those who are employed are increasingly dissatisfied. One explanation for the lowered satisfaction is that the decreased availability of jobs has made it difficult for employees to find challenging and interesting work. Costcutting and downsizing initiatives also have a negative effect on satisfaction. Satisfaction has been linked to increased retention and productivity, among other organizational benefits (Bedeian & Armenakis, 2008: 134). Therefore, undermined satisfaction delivers another blow to organizations trying to achieve their objectives in the midst of economic woes.

The Role of Leaders

Leaders playa key role in helping to avoid the disengagement, dissatisfaction, ...