Engaging employees during difficult times 8 December 2008

2 The next two hours 1.Introduction 2.The current climate & 5 things 3.Caroline Rouse and Jane Cooper 4.Lunch 5.4 table discussions 6.Close

People challenges Job losses and continuing uncertainty – focus on sales and costs; keeping people on track; business as usual Ensuring people understand the response; buy-in to messages Treating those who leave with dignity and looking after survivors For some “Squeeze to come” “Focusing people on change which they do not want to embrace.” 3

Impact on roles More sensitivities re messaging, alignment; “getting the right tone of voice” Getting out and hearing first hand how people are feeling Ensure activities seen to be cost effective Fight harder to push investment in people “Differing priorities now – budget and headcount focused – preparation for 2009.” “A shift from future development orientation to equipping people with skills for the immediate environment.” 4

What is working Clear messages (e.g. “winning in tough times”) More information about what is happening and why More emphasis on face to face and leadership visibility (e.g. CEO tour – acknowledge, plans for growth when turnaround) More involvement in planning, shaping the organisation and decision making (e.g. workshops on maintaining performance) Morale boosting festivities (e.g. Children’s party, Christmas party, Beaujolais Nouveau!) “Providing greater access to senior management to ask the harder questions in open forums.” 5

Biggest concerns and issues Retention, motivation, engagement during more change, redundancies (and “rumours”) Recession (and election in Public Sector) stretching resources Career management skills to equip people in uncertain future Keeping communication in the loop “Civil servants will begin to appreciate their position more... engagement will experience a natural up-turn in this economic downturn!” “Keeping morale high - trying to improve communication from senior managers and getting them in front of staff to reassure them of our strategy for 2009.” 6

In summary Private sector hit harder; squeeze coming in Public Sector Morale and motivation is an issue, but helping people to “get it” and to understand the organisation’s response is the priority Stay in touch and align messages and tone of voice Increase leadership visibility and face to face activity Focus on the here and now; performance More grown up – equip people with information and skills so they manage 7

The economic downturn 54% of employees say they have not heard from company leaders at all about the impact on their company 70% expect that the situation will have a negative impact on their company 71% feel their leaders should be communicating more about current the economic problems Source: Weber Shandwick October

5 things 9

1 Know what engages your people Individual factors: Personality Personal life Workplace factors: Sense of purpose Resources & communication Control and autonomy Work relationships Work-life balance Work overload Organisational processes: Management and leadership (Balancing challenge and support) Feedback and recognition Commitment of organisation Engagement Job satisfaction Organisational commitment Psychological well-being Business outcomes Meta-analysis by I Robertson, 2008

5 things continued 2 Stay in tune with employee feelings 3 Set short-term targets 4 Support managers 5 Make leaders accessible 11