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Motivation versus Cutting Costs

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The most acute paradigm of the moment is that of performing with fewer employees and of course with them powerfully affected by the present socio-economical context. Reduction of personnel, cost cuttings, smaller bonuses, grater responsibilities, all because of the decimation of teams. Therefore the fight for clients is keener than ever, services and products must be competitive in order to overcome the rough competition and the reduction of consumption.

Can the human resources departments do something as to motivate employees? Or the resignation and expecting better times are necessary?

Resignation seems to have found place in every company and it is certain that no one wants this. Preoccupied in cutting costs, human resources departments sometimes forget that unmotivated employees can easily become saboteurs, volunteered or not in the company they work for. In firing context, due to lack of communication, every employee feels that his position is threatened and therefore a generalized, dangerous and hard to eradicate indifference settles.

The primary error which the men who lead other men make is to put negative solutions in front of the positive ones, concentrating in excluding, instead of keeping and developing that which is better. It all results in a tensioned and agitated working environment which affects both the ones who are fired and the ones who stay and are expected to perform.

Another error is that of finding the general context as an excuse for non-involvement. “They don’t have any place to go anyway, why should I bother motivating them?” Therefore it is forgotten that an employee can bring more damage by staying and using the instruments giving by the company itself, then by leaving the working place.

Last but not least, the excessive preoccupation in saving costs on short term generates on medium and long term huge costs and a lot of stress inside the team, due to the key positions that are now unfilled and which cannot be assumed by others. It’s demotivating to become responsible for the results you know you can’t sustain.

But there are solutions as to motivate employees even in difficult conditions.

First of all it is known that people are motivated if they work in an environment in which they job is appreciated. Therefore if we would eye the paradigm of extrinsic motivation: “I don’t have money to motivate them” and concentrate on the intrinsic one which begins from the need of recognition, appreciation, acceptance, we might have motivated employees even in such difficult economic conditions. It is truly hard that when you are under pressure to be positive and transmit constant and relevant feedback. However during a crisis the true leaders are revealed, the ones who can positively influence attitude, spirit and employees motivation.

Furthermore optimal and transparent communication of negative decisions reduces stress generated by the hatch above the head sensation.
Implicating key employees in taking decisions on the costs or structures optimization is also efficient. Not only do they bring an added value to the strategic decisions, but their implication reduces the resistance level they might show in applying those measures.

As for the reducing the number of employees, maximum attention to the new organizational architecture! Are the remaining employees ready to assume new responsibilities? Do they have knowledge and the necessary abilities? All of these questions must find a positive response.

Last but not least the “negative succeeded by positive” approach can be useful. If you were in the position of taking unpopular decisions (firings, cutting wages) try to find some popular measures, positive ones (flexible working program, for example).

Maybe none of the methods suggested here are efficient. However it is certain that the most unlucky choice is to indulge into a bucket of negativism and indifference concerning the motivation of your employees.

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