When was the last time you had an upbeat conversation about work? While it may seem churlish to moan about having a job, grumbling is a national hobby. And it's obvious that a lot of people are having a tough 2009. While this is the result of the financial crisis and recession, poor management is also partly to blame.
A double whammy of severe credit restrictions and falling sales is leading many firms to look at cost-cutting. In a service-based economy this means shedding people and is a new concept for some directors. Those who have led firms for over a decade have only experienced growth. Now the actions of a few large firms axeing tens of thousands of jobs are matched by tens of thousands of small businesses losing a few staff. It's painful and can create a difficult environment in a small firm.
Financial pressures often lead to poor decision-making. If the way you've always done things is to control all aspects of your business down to the tiniest detail, then carry on. But if your company was one of the many that tried to appeal to Generation Y employees with a relaxed, trust-based culture, the desire to micro-manage must be resisted. If it wasn't right in the good times, why are you sure it will work now?
It boils down to trust and responsibility. We all want staff to take responsibility for implementing decisions we take. In return, we must be prepared to trust them. When leaders get too involved in day-to-day detail, they can't focus on the future. Granted, in a crisis survival comes first and the niceties of empowerment and trust take a back seat. But healthy firms are turning their backs on cultures that have succeeded.
The assumption is that unemployment will lead to inertia in the job market. But this may no longer hold true. As David Woodward explains, Generation Y is a different breed. Even if staff sit tight in the short term, the damaging effects of this erosion of trust will hit the business when the market picks up and top performers take off. Jo Owen puts it well when he says that leaders need to take tough decisions, but then help employees to implement them, rather than bully. Handle this right and you may keep your staff loyal. Better still, you'll flourish when the good times return.
Richard Cree
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