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Revitalising Alignment, Capability & Fit
Surviving the perfect storm
Do’s and don’ts for employers and employees
- Don’t panic
- Take a strategic view
- The storm will pass – where do you want to be afterwards?
Whether the current dramatic events in world markets really adds up to such a cataclysmic situation remains to be seen. However, there’s no doubt that the situation is very serious and threatening to many employers and employees alike.
The Rialto Consultancy advises businesses and organisations on how to improve performance, and CEO Richard Chiumento and Director Bill Pitcher have a sense of déjà vu, remembering the collapse of the markets in October 1987. Both were then working in and around the City, providing services to employees who lost their jobs and helping them back into employment. So what did they learn then that can be applied to today’s dramatic situation?
“Employers need to avoid panic measures” says Chiumento, “as they send completely the wrong message to employees. They need to be re-assured that the business is in competent hands and there is a clear strategy to ride out the storm.”
He has five key messages for employers, to help them make their way through these difficulties:-
- How is your business positioned right now? Are you doing well, and able to buy other lower performers as bargain buys, as we’ve already seen with JP Morgan and Bear Stearns? If so, do your due diligence and be clear about how your business will gain from an acquisition. Making an acquisition work for you can sap vital energy and resources at this difficult time, so think carefully before committing to buy. The people issues of mergers & acquisitions are well know to provide major obstacles to realising the real value of both organisations, and may indeed devalue them both instead. Make sure you have a human capital plan to address the fundamental people issues.
- If your business is not well placed to ride out the storm, take the obvious actions such as controlling recruitment, reviewing temporary and contract staff (where it makes sense to do so), reviewing all areas of expenditure – and do this against a blueprint of what you want the organisation to look like after the storm. What will the new, slimmed down you look like? How will you rebuild the business or perhaps build it into a different business?
- At this time of great uncertainty your staff will be anxiously watching and waiting to see how the company is weathering the storm. You need to communicate more frequently at this time, and maybe focus on a small number of key indicators, to show how well or otherwise you are coping. Above all, don’t lie or deceive staff – you may get away with it once, but you will lose all trust and respect for the future.
- If you decide to reduce staff numbers make sure you manage this process in a planned and sympathetic way. Fully involve your managers in the process and take good professional advice about the best way to avoid pitfalls and legal action. There are many horror stories about actions including sabotage taken by disgruntled employees against their former employers, and these could cost your business heavily in terms of damage, customer relations and simply bad publicity.
- Use this situation as an opportunity to create a better performing organisation for the future, which has a high performing culture and can also be an employer of choice. You will be remembered and judged on how well you handle both those employees who are made redundant, and those who remain with you. Reputations as “good employers” are hard won over a long time, and can be easily and quickly surrendered.
Pitcher has some key points of advice for employees who might be concerned about their future. This is based on his twenty-one years experience of working in The City, helping people to develop their careers.
- Don’t panic. Plan a course of action, but don’t jump from one uncertain situation into the unknown. You may also lose out on your service related benefits such as redundancy payments and pensions if you leave too soon.
- Dust off your dream job or situation. What is stopping you – or how are you stopping yourself – from realising your dream? This may be the ideal time to check it out.
- Once you’re clear what you would like to do next, prepare a “curriculum vitae” or CV, and make sure that it’s not too long, and focuses on achievements. Remember, if you want to make a major change in the kind of role you’re seeking, you may need to write a different kind of CV known as a “skills based” CV. This kind of CV highlights your transferable skills which underpin your current role and could be applied to a different kind of role.
- Increase your networking activity. Meet friends and colleagues and do your data collecting about which companies are doing well and which are suffering badly. Start planning a job search campaign in case the situation does arise, but don’t act too soon unless it’s the ideal job and company that wants you, and you’re pretty sure they are secure. Evaluate carefully what a job move will add to your CV and experience and remember that it needs to be worthwhile. Once you leave your current employer your benefits start from zero with your new employer.
- If you have a partner, share your concerns with him or her, and also your hopes and dreams. Involve them in any cost cutting decisions or changes of plan or lifestyle. If you don’t have a partner, use your network of friends to share your fears and concerns.
“Remember” says Pitcher, “even after the most severe storm, nature has a way of compensating and bringing balance back into the situation. It’s the same with markets; they are cyclical and will return over time. The trick is to be well positioned to maximise your skills, abilities, and dreams as the situation improves.”
Chiumento believes that recovery will be slow from the current situation, and will in part be related to the Presidential election in the US, and the time it will take for the newly elected incumbent to make his or her mark on the US economy. “It seems like we‘re in for about a year or so of turbulence and challenges. Well managed companies with a plan and vision are most likely to come through this period in a stronger position in the market place, and with improved levels of employee engagement and satisfaction.”
“Rialto listens and understands what we need, and delivers us the people we need in a fast and effective way”
David Holroyd, Group HR Director, Steljes Ltd
If you would like to know more about The Rialto Consultancy
Increasing productivity & performance from a reduced workforce
Thursday, Dec 11, 2008, 12.15 pm (12 noon arrival), Rialto London offices, 25 Southampton Buildings, Chancery Lane, London WC2A 1AL
An exclusive invitation to attend our highly-acclaimed round-table event.
