Multi-Housing News - May 2009 - (Page 26)

perspective Rules of Engagement Doing more with less for employees during a recession is key to retaining their loyalty By Betsy Feigin Befus, National Multi Housing Council The current economic recession has imposed strict limitations and a renewed sense of accountability on companies in nearly every business sector. Apartment industry leaders are striving to achieve their targets even though their resources have been reduced. This new fiscal discipline has impacts across the company, but employment-related budget items can be hit particularly hard. From a human capital perspective, how can an apartment firm do more with less? Employee engagement When it comes to the difficult, but sometimes inevitable, decision to freeze salaries, trim benefits or even reduce staff, top executives and front-line managers can lessen the potential damage by keeping basic “employee engagement” principles in mind: to be fully motivated, every staff member must be committed to the company and understand his or her role in achieving corporate success. “Engagement drivers” can also help an employer manage more widespread dissatisfaction that can lead to vulnerability in other ways, such as unionization. Though the apartment industry has not been a traditional union target, the Employee Free Choice Act that was recently introduced in Congress—if it passes—could boost union activities across industries, including our own. Some experts say that employees do not vote for a union so much as they vote against a manager that they see as uncaring or unresponsive. Thus, loyal and engaged employees may be less willing to consider union overtures than employees who are underappreciated. Creative rewards Given the challenging economic environment we face today, many employees are thankful to have their jobs. Employees may be more understanding about compensation reductions and additional responsibilities during tough economic times, but use various messaging formats. Informal meetings, the last thing any business can afford to do is to take small gatherings, conference calls, and e-mails that loyalty for granted. target both individual team members and the entire Now more than ever, top performers should be company reinforce the message that your firm valrecognized and rewarded—or managers should preues and respects its employees. pare to do without them. A failure to reward standThoughtfully developed communications can out employees will not only compromise productivihelp employees understand—and even accept— ty now; it will also pave the way for employee tough messages. Any communication that turnover, especially when the economy improves announces, for example, a salary freeze or bonus and more opportunities surface for these “stars.” elimination should include It goes without saying the reasons behind the that recognizing an decision. This can diffuse employee’s contributions anxiety and enlist support can be a challenge when Top performers should for the change. The timing resources are scarce. But be recognized and of the message can be as best practices suggest that rewarded—or prepare important as the informaemployee rewards for your tion it provides. It is possihighest performers should to do without them. ble to overdo “doomsday” be one of the last budget messages and to announce items to be eliminated. cuts too far in advance. It makes good sense to Be as consistent as you provide whatever rewards can in your communications. For example, you can are possible, rather than eliminate them completely, compromise trust—and therefore employee engageespecially when it comes to staff members who are ment and productivity—if you announce numerous key to the organization’s success now and in the cuts as well as new expenditures that seem to confuture. Lower budgets for merit increases and bonusflict with your overall tone of frugality. es can spur less traditional, but more creative, Paying attention to employee engagement and approaches. For example, a personal thank you from morale has never been more important. Because the company’s leaders can do wonders even for an engaged team makes real contributions to the high-level, tenured staff. bottom line, building and protecting the loyalty Communication is important beyond showing that inspires employees to go the extra mile may appreciation. Honest and timely communications protect your company during these difficult times about the company’s plans and financial health go and help it to prosper during the good times that a long way toward inspiring the trust and engageare on the way. MHN ment that are essential to loyalty and productivity. Employees need to know that decisions being Betsy Feigin Befus is vice president, employment made are strategic, not just tactical short-term policy & counsel for the National Multi Housing reactions that may betray the company’s core goals Council in Washington, D.C. and values. Thus, regular messages from organizational leaders are important. And to increase employee engagement, these messages should MHN ONLINE invite feedback. Read “Green Building is Critical,” The apartment industry, because of its decentrala Perspective by Adrienne Faulkner, at ized structure as well as the need to address both onwww.multi-housingnews.com/GreenCritical site and corporate employees, requires its leaders to “ ” 26 May 2009 | Multi-Housing News | Official Publication of Multi-Housing World http://www.multi-housingnews.com/GreenCritical

Table of Contents for the Digital Edition of Multi-Housing News - May 2009

Multi-Housing News - May 2009
Contents
From the Editor
Executive Insight: David Picerne
Market Pulse
Investment: A Safer Haven
Finance: Weathering the Risks
Case Study: Industrial Chic
Profile: Green Properties
Technology: Social Media
Renovation Tips
Products: A Touch of Luxury
Perspective: Employee Relations

Multi-Housing News - May 2009