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04.11

How Do Your Employees Really Feel about Working for You?

By Gary Perman

Many employers are feeling the double-edged sword of economic recovery. One the one hand, there’s the exhilaration that the recession may be ending; on the other, the stress of depleted inventories and resources, and the constant challenge of revenue growth. This plurality of thought is changing not just the landscape of how management views its continued corporate growth, but its relationship with its employees as well.

Recent federal incentives have seeded many companies in markets such as wind, solar, energy, automotive and the electronics industries to spur job creation. I have seen a flurry of industry growth and employee optimism. Unfortunately, federal incentive funding is also “running out,” exemplified by the Solar Panel incentives in Colorado, resulting in the closure of branch offices, and fueling the merger/acquisition of other companies. Venture capital remains tough to come by in the United States, and further contraction of venture firms is expected domestically  so many entrepreneurs are reaching out to financiers in places like Poland, Brazil, Israel, India and China. to invest in America’s emerging technologies. Adding to the confusion is the big question: “Should we, as companies, grow, expand, or stay put? If our crystal ball were firmly in place, the answer would be easy, but accurately reading the pulse of industry in the next few years is beyond the scope of reality.

As managers focusing on this conundrum, you may be ignoring an even deeper concern—the employees and team spirit that drive your success. These are the very individuals who help your company grow and prosper, yet, as the economy slowly recovers, may, at this very moment, are thinking about leaving you.

Despite the recession, most employers have had a very difficult time recruiting and hiring away highly-qualified, technically-proficient people. No amount of advertising would entice them away from their current jobs because they fear any employment change. They are also not reading the very publications that would motivate them to seek you out, even though their unhappiness grows. The end result is a tremendous number of unfulfilled high-tech jobs, fueling the belief that the United States is plagued with a significant engineering shortage.

That perception is changing, though, as industry begins its slow but steady recovery, and consumer confidence grows. With an emerging light appearing at the end of this hiring abyss, and employees start to feel a bit more comfortable peeking out from behind their cubicles, this trickle will soon become a stream.

The end result of this emerging confidence is that many companies can now expect a dramatic employee turnover in the next two years. This sounds crazy, but some studies are predicting that 40 percent or higher is not unrealistic [Sirota Report, Sept. 2010]. Why?

• The recession has forced many companies to make difficult decisions over the last few years, turning them into “lean and mean” machines. Almost every manager has been expected to do more with less.

• Employees are expected to work extra hours, often without pay, to “save the company.” Pay cuts are common, with painful consequences.

• Employee cost for insurance has skyrocketed, while benefits have been reduced.

• Many employees feel undervalued and unappreciated, undermining their self-confidence and sense of self-worth.

Bottom Line: Up to 60 percent of all employees are feeling ill-treated and resentful, and many are outright angry [Sirota Report, Sept. 2010]. A very large percentage of those “abused” are now actively seeking new positions as they experience more confidence in the growing economy. And yes, from what I see and hear by speaking with industry executives in the market, there will be a large number of opportunities for them to pursue.

Larry X (not his real name, as he is still employed) recently contacted me to begin a confidential search for a senior business development position in the Smart Grid industry. Although he is a consistent top producer with a proven track record of increased sales for his company, his boss believes he is earning too much in commissions and is now capping his pay. I’ve heard this unfortunate story from at least half-a-dozen salespeople at different companies, and this all-too-common scenario is now driving a dramatic power shift in the business world.

Heads up! Here it comes! My calls increasingly reflect a rapidly changing market. Talent I had attempted to recruit months or even years ago, feared making a move, are now asking me to “keep my eyes open” because they are unhappy with their current employer and no longer willing to accept the status quo. A recent survey by salary.com indicated that 80 percent of managers do not believe that their employees will initiate a job search in the next three months. This indicates just how "out of touch" managers are with their employees and the disparity between employee satisfaction and managements' perception of employee satisfaction.

If retaining your key employees is important to you, here are a few simple ways to find out how they REALLY feel about working for you:

1. Take a close look at the number of sick days your key employees have taken. If that number has increased significantly compared to the number taken pre-recession, it’s a red flag, and you might want to take immediate action to address potential morale issues.

2. Keep current on social media. If you aren’t, I guarantee your employees are. Are your employees spending time on job boards or surfing the web? On Facebook and LinkedIn accounts? Are they checking out other companies, or posting complaints about yours? As executives and managers, it’s important to monitor Twitter and other new, emerging social media. With a few key word searches, you can monitor just about every positive and negative thing said about your company, and I promise you’ll be both surprised and aghast. I’m not advocating a “Big Brother” monitoring policy, but from time to time, it can be very helpful in getting a perspective on the “pulse” of your team.

3. Are your employees spending more time around the water cooler? Are they hanging around with “new” friends and spend lots of time together? Unhappy employees tend to gravitate towards other unhappy employees.

4. Do a little snooping. When Hewlett-Packard started going through the first of several changes corporate around 1995 many founding employees were unhappy with what they perceived to be the cultural disintegration of the “HP Way.” Layoffs were imminent, spurring employees to rant and rave on the net. A simple Google search of “HP sucks” brought up hundreds of resumes of employees ticked off about the way they were treated. Today’s employees are no different. “Your-company-name-here Sucks” can be found on many businesses with a simple Google Search, crossing over into the Twitter world as well.

If you’re concerned that you could lose a key employee or employees to competitors, you might consider taking steps to mend some fences:

Restore benefits and pay, if possible. If you’ve recently cut key employees’ bonuses or commissions, chances are, at least some of them are or will be talking with headhunters.

Let your key people know that you value them and their contributions. Employees really appreciate being appreciated. It’s amazing how far “attaboys,” pats on the back, and verbal encouragement go to instilling value and loyalty into your team.

Seek out employee advice — from innovations to cost cutting to process improvements. The more you can solicit your employees’ ideas and feedback, the more engaged and loyal they will become. Giving individuals “ownership” of a project or task goes a long way toward building a positive team environment. Whenever possible, be open with employees about the challenges your company is facing, and ask them to be part of the solutions. Making employees feel that they are integral to the success of the company can be vital to retaining them

Reduce the workload for key employees by choosing permanent hires over a constant flow of untrained temps. While temps may solve immediate needs, they are always an “outsider.” If you find a temp who can contribute and become a long-term asset to your company, hire her!

Gary Perman is a certified recruiting professional and owns PermanTech, a national search firm which specializes in recruiting EV, Solar and Electronics executives, managers and engineers. He is also the Chair for the IEEE Oregon Technology Management Chapter and the Oregon Section Secretary. He can be reached at gary@permantech.com  www.permantech.com

Comments may be submitted to todaysengineer@ieee.org.