I have never actually said that to someone, but I have been on the receiving end. I experienced the bad years in technology firsthand when I worked for a large CRM software company – not to be named – and during a company meeting, the CEO got up on stage and said we should all be thankful that we still have a job. He said he was tired of listening to people complain about the economy and the struggling business and that we should just be happy to have a job. Comments like that sound very similar to what former Senator and McCain advisor Phil Gramm said recently about the economy and the chance of a recession. These are not the types of pep talks people are looking for in tough times, and you can just watch morale drop after a talk like this.
Is the bar really that low to keep your employees motivated and happy in tough times? I don’t think it is, and companies need to look at how best to manage their talent in tough times. The reality is that bonuses are going to suck this year, and Holiday parties were cancelled left and right, but let’s remember that compensation is not the only thing that keeps people happy (and retained). They want to feel challenged by their work, and they like knowing that they are contributing to the company. People also want the truth and to know as much as possible – the unknown is very scary. With the current economic woes, there are lots of low cost morale boosters that organizations can adopt to help keep employees engaged and motivated.
Instead of a company party, organize a company volunteer effort and help out at the local soup kitchen or shelter. Or give people some time off to volunteer on their own (yeah, I know some people will just go shopping, but it is their choice). A small gesture can go a long way in tough times. At the same time, management can’t get wrapped up in the “we have to pay our top performers at all costs” mentality. A good example of how not to handle bonuses in tough times is what AIG did recently with their deferred compensation. This is complicated by the government bailout, but still it is a good example of a bad decision. I especially love this article and the wise comments from Rep. Elijah Cummings, D-Md:
Kashkari explained AIG’s compensation decision. He testified he was told by his staff that the money was going to be released as an incentive to retain certain AIG employees.
“We need them to keep working,” Kashkari said.
To which Cummings responded, “We need them to keep working, but guess what? There are a whole lot of people that could replace them because there are so many people losing their jobs. … I guarantee you there are people who are lined up saying, ‘Please quit so I can get a job!’”
These are very sensitive times, and employees need to be treated with respect. I don’t want to argue the details of the AIG bonus decision, but we can all agree there are perception and communication problems. What level of engagement and productivity do you expect in return from the employee who is “just happy to have a job”? There’s no doubt that the job market is tough. Unemployment claims jumped unexpectedly to a 16-year high and we have all read the recent headlines. As we work through these difficult times, it is important to remember that business goes on after the layoffs are done, and companies usually find themselves in a situation where they have to do more with less. They need employees who are motivated and engaged. Telling them to “just be happy they have a job” is not the right way to get that.
Jeff, I agree with you here. While I’ve seen some companies with poor corporate cultures, it’s largely come down to mgmt philosophy (and therefore selection criteria of mgmt itself.) A manager that treats his/her employees poorly in down times is, in my eyes, showing his/her true colors. It’s like the person at the bar who has a few drinks and starts showing who they really are.
Great article.
As I only got into the recruiting game in early 2003, I started recruiting during our previous recession. What I can remember during 2004 is candidates recounting how they were treated . . . and why they were ‘now ready to move on given that the economic condition has turned around.’
I find myself laughing today that I’ve recruited more months in recessionary periods than the latter
Completely agree that corporate culture drives much of this conversation and that senior management is a major factor in culture. Recessions present some real challenges, and especially to managers. It is easy to manage in the good times.
Of course those comments aren’t motivating. And your best talent will always have options, today and when the economy turns. A recession is an opportune time to grab market share and competitive advantage — one of the best ways to do that is by motivating your people to stay focused, work hard to achieve the company’s (perhaps) realigned objectives, and position to dominate when the recovery comes.
Compensation is certainly not the only thing that keeps employees happy. In this no-bonus year, meeting employees needs (as defined by Maslow’s Hierarchy of Needs) can never be accomplished by compensation. So what are employers to do when budgets are being slashed? Consider strategic recognition.
I blog extensively on this top of addressing all employee needs here: http://globoforce.blogspot.com/2008/12/no-bonus-year.html.
I agree that compensation is only one element of employee motivation and engagement but wouldn’t the lack of bonus mean that compensation is more important for motivation according the “Maslow” gig?
Less money (than I’m used to) means I have less money to fulfill the lower level elements (security, safety, etc.) If I can’t make the house payment I’m not gonna be too happy with a gift certificate to Sharper Image.
I think we’re reaching for a way to apply non-cash rewards.