Over a 12-month period, a technology-driven service company that was profitable for many years lost one-third of its revenues. A new CEO was appointed to turn around the business. He froze salaries, reduced benefits and laid off employees. As a result, employee morale, motivation, and productivity plummeted and feelings of instability and insecurity skyrocketed. Employees lacked confidence and trust in top management. The company had no Human Resource leadership or staff. Heather Edelman was called in to help.
Solution: Develop a Comprehensive Human Resource Strategy.
Working with the executive management team, Heather Edelman helped to create a values-based corporate culture of respect, trust, integrity, customer excellence and fun. The new culture helped employees feel valued and respected. It also provided them with opportunities to get to know management in a less formal, structured setting. As a result, employees felt more comfortable expressing their views and ideas, and communication between employees and management became more open and honest. Some specific steps that were taken included:
- Policies and practices that demonstrated the same values and served the needs of the business were implemented. The underlying philosophy of these policies and practices was consistent with other parts of the Human Resource strategy. They reinforced management credibility because employees believed management was “walking the talk.”
- Programs to recognize and reward employee contributions were initiated. These programs strengthened the perception that management recognized and valued employee contributions. This helped increase morale and productivity.
- A comprehensive employee communication plan was established to ensure employees were kept informed about the business. Employees became more motivated as they came to understand the Company’s short and long-term goals and the impact each employee had on these goals.
- A Human Resource team of highly skilled professionals was built to support the Company’s growth. Employees viewed the Human Resource team as advocates, people they could confide in, who would help them solve problems and address any issues. Management involved HR in strategic planning and decision making so that employee impact was considered when making every business decision.
Result: Employee Population Triples and Earnings Grow
Employee morale, motivation and productivity increased, while employee turnover decreased. Key personnel remained with the Company, confident the new leadership team could turn around the Company. The Company became an employer of choice and was able to recruit top talent. As a result, the Company’s earnings grew by 28% while the employee population tripled.