Manager Tips: Leading Employees in a Lean Economy

As the economy sputters through what appears to be a prolonged recession, leadership skills are more important than ever. Amid their struggles to balance budgets, control cash flow, and save jobs, managers must demonstrate to stakeholders that they have what it takes to effectively direct their organizations--proving that they are in control of the current situation and have plans for improving operations.

Employees are one key group of stakeholders that managers need to address. For most, their livelihood depends on the organization's performance, and they look to company executives for guidance and direction. At the same time, the organization's livelihood depends on the employees' performance. Employee commitment and dedication will be essential for pulling the company through difficult times, and managers will have to keep their team members engaged. 

To successfully direct this mutually dependent relationship, managers must exercise strong leadership skills. They must have a firm grasp of business operations, but they must also have a solid understanding of employees' needs. They must be able to connect employees to the organization and make them feel a part of it. They must build a sense of purpose and direction, even though the business climate may be daunting. 

How does a leader do this, especially when resources may be limited? We offer the following suggestions:

• Define the organization's goals and strategy and share them with employees. In order to build a high-performing organization, you must have clearly defined goals and a strategic plan to reach them. You must also make sure that everyone in the organization understands the goals and plan. If your people don't know where you're going, how do you expect them to help get you there?
• Increase communication. Share company information with employees through a variety of media (staff meetings, newsletters, e-mail updates, etc.). Let them know what's going on in the organization. Don't be afraid to share negative news, but also be sure to emphasize the positive developments too (even in tough times, there's still opportunity to celebrate).
• Offer one-on-one interactions. Make yourself accessible to employees. Let them know you're interested in their contributions to the company, their professional development, and even their interests outside the office. Let them know that as a company leader, you're there to support them.
• Provide industry updates. Educate your employees about what's going on in the industry in which your organization operates. Make sure they understand trends and outlooks and how these will impact your company's operations.
• Promote creative learning opportunities. Even if you don't have a large budget to send employees to workshops or to reimburse tuition, you can still offer development opportunities. Perhaps a local trade association is sponsoring a free lecture, or maybe the local library is offering computer skills courses. Also, don't forget the experts on your own staff--allow your team members the chance to teach and learn from one another!
• Give sincere and specific praise. Good leaders know that employees like to hear positive feedback. Take the opportunity to acknowledge outstanding performance, and make sure it's immediate and specific: "I noticed yesterday that you . . ." or "Your idea to . . . meant that we were able to . . . ." Good work that gets noticed gets repeated.
• Promote an environment of openness, trust, and respect. Give employees the opportunity to offer you input and feedback, and make sure they understand that you're available. Then when they come to you, be sure you listen to them and respect what they have to say. Model this behavior for others in the organization and actively promote it as one of your organization's values.
• Build a sense of pride. Tie value to employees' work and help them understand the importance of their contributions. A FlashPoint team member recently heard a speaker talk about meeting a man who manufactures wires for medical devices. "I save lives," the man told her--and in the process he demonstrated what a great asset it is to take pride in one's work.

Of course employees are interested in job security and economic well-being, but surveys also indicate that they get as much, if not more, satisfaction from things such as recognition and appreciation, a sense of inclusion, and personal attention. Good leaders will understand this and will address these needs--and by following the recommendations presented above, they can help keep their organizations moving forward even when economic forces keep pushing back.

Congratulations and Celebrations

FlashPoint congratulates one of our clients, the Regenstrief Institute, for receiving positive recognition from the World Health Organization (WHO). The WHO recently named the institute as its first Collaborating Center for Medical Informatics. The four-year designation acknowledges the institute's innovative use of information technology within medicine, promotes the institute's participation in international collaboration efforts, and enables the WHO to more directly draw upon the institute's expertise. For more information about the institute and its work, visit www.regenstrief.org.

Join FlashPoint for The Leadership Challenge® Workshop!

Are you interested in developing leadership skills like those outlined in our main article? If so, join us for The Leadership Challenge® Workshop!

The workshop is based on the research of Jim Kouzes and Barry Posner, who have studied leadership development for more than 25 years. Sessions will focus on Kouzes and Posner's Five Practices of Exemplary Leadership® and on behaviors that support the practices, including:

• Building credibility by ensuring consistency between your personal values and your actions
• Creating and communicating a shared vision
• Aligning employee and team behaviors with strategic direction
• Cultivating new operating methods, taking calculated risks, and acting strategically
• Fostering an environment of employee accountability
• Giving and receiving feedback

The workshop is ideal for mid- to upper-level functional-area managers, plant leaders, or high-potential managers in any industry. Leaders in growing small- to medium-size organizations will also benefit.

Dates: April 23, May 21, and June 25
Time: 8:00-4:30 (breakfast and lunch included each day)
Location: Barnes & Thornburg LLP, 11 S. Meridian St., Indianapolis
Facilitated by: FlashPoint consultants Andrea M. Moore, CPLP, CEC, and Jeremy King, SPHR
Cost:  $1,800 for FlashPoint clients, $2,200 for nonclients; includes the three-day workshop, a Leadership Practices Inventory assessment, an hour-long one-on-one coaching session, and more. Send three people and the fourth is free! Also, ask us for details about our discount for charitable nonprofits.
Register: By April 3--space is limited! To register, call 317.229.3035 or e-mail info@FlashPointHR.com.

For more information, click here.

New Laws and Court Rulings Affecting HR

New COBRA Changes Require Immediate Action

As part of the recently enacted American Recovery and Reinvestment Act of 2009 (ARRA), employees who are involuntarily terminated from employment between September 1, 2008, and December 31, 2009, will be entitled to a premium subsidy for up to nine months of their COBRA continuation coverage. Under this provision, terminated employees (and their qualified beneficiaries) will be required to pay only 35 percent of the monthly COBRA premium, while the health plan (either a self-insured employer group health plan or an insurance company) will be able to obtain an employment tax credit equal to the remaining 65 percent of the monthly COBRA premium. Because this new provision is already effective, administrators of group health plans will be required to take immediate action to comply with its requirements.

To learn more about the steps employers need to take in order to comply with the ARRA, read Barnes & Thornburg LLP's Labor Alert on this issue. If you need help interpreting and complying with the act, e-mail info@FlashPointHR.com or call 317.229.3035.

Violation of No-Fault Attendance Policy Is Not Just Cause for Unemployment Purposes

Many Indiana employers have adopted a no-fault attendance policy, which subjects absent and tardy employees to progressive discipline, regardless of the reasons they miss work. Employers argue that as long as such a policy is reasonable and uniformly enforced, it provides just cause if the employee is eventually terminated. Employees who are terminated for just cause are not eligible for unemployment benefits.

In a case last month, however, the Indiana Court of Appeals ruled that "an attendance policy that subjects employees to termination for absences or tardiness regardless of the reason is unreasonable," and determined that absences and tardiness for which an employee can "show good cause" shall not support the denial of unemployment benefits. In light of this, employers who want to successfully challenge unemployment benefits based on attendance violations will need to revise their no-fault policies to conform to this decision.

For details on the case and further explanation of its implications, read Barnes & Thornburg LLP's Labor Alert on this issue. If you need guidance developing attendance and progressive-discipline policies that comply with the ruling, e-mail info@FlashPointHR.com or call 317.229.3035.

Indiana Chamber HR Workshops

FlashPoint sponsors the Indiana Chamber's 2009 HR Training Series. Information about the following workshops is available at 800.824.6885 or www.indianachamber.com.

• Workforce Restructuring, March 5
• Workers' Compensation Conference, March 18
• Employment Law Seminar, March 19
  

Continuing Education Workshops in Indianapolis

Looking for cost-effective training opportunities for yourself or your employees? FlashPoint facilitates noncredit courses through the IUPUI Community Learning Network. For more information on the following workshops or to register, visit www.cln.iupui.edu.

• Leadership in a Multigenerational Workplace, March 20
• Manage Your Time by Managing Yourself!, April 24