Many
small business owners are struggling to stay afloat and are being forced to
make tough decisions—such as instituting layoffs or budget cuts. In the wake of
these decisions, office morale can dip as employees face uncertainty about
their jobs. Better Business Bureau offers guidance for small business owners on
how to keep office morale high in a tough economy.
The
unemployment rate in the U.S.
is already at a 26-year high and layoffs are still in the future for many small
businesses. According to an August report by the National Federation of
Independent Businesses, 14 percent of small business owners plan to cut staff
in the coming months. Even for employees
that survive a layoff, job uncertainty remains. Equifax reports that small
business bankruptcies were up 81 percent in June over the previous year.
“Layoffs,
budget cuts and the pressure of an unstable economy can cause office morale to
dip,” said Frank Whitney, CEO of the MidCal Better Business Bureau. “When
employees aren’t happy and morale is low, productivity suffers, resulting in a downward
spiral for an already struggling business owner.”
BBB
offers the following advice to small business owners on how to maintain office
morale in a tough economy:
- Enlist management in setting the right
tone.
In the wake of layoffs and budget
cuts, it can be difficult to strike the right tone that will inspire trust
with employees. Small business owners and management need to be on the
same page in expressing optimism for the future.
- Acknowledge individual achievements. When morale is
low it’s more important than ever to encourage employees and recognize the
work that they do. Consider starting an Employee of the Month program or
rewarding employees for completing projects or meeting goals.
- Be open and listen. Talk to employees and listen to their
concerns and recommendations. Sometimes little things can have a big
impact on office morale; talk to employees to find out what keeps them
happy and what they would like to change around the office. Keeping the
lines of communication open with employees can also help quell rumors that
can undermine office morale.
- Provide an extra day off or a flexible
schedule option. Especially around the holidays, employees will
appreciate an extra day off, the opportunity to work from home or flexible
hours.
- Keep the holiday party, but lose the
excess.
Many businesses have had to cut
office parties altogether because of budget concerns, but events like
office parties are a way to show appreciation, boost camaraderie and
inject levity. Consider less
expensive options for a party such as hosting a holiday lunch instead of a
dinner or instituting a volunteer day to get everyone out of the office
and working together.
For
more advice on managing a business in a tough economy, visit www.bbb.org