Layoffs and Employee Moral

By jschlosser • August 11th, 2009

In todays economy, many companies are laying off employees.  This leaves those still employed with more responsibility and often the sense of being under appreciated.  The following is a case history from one of our promotional product vendors relating how one client company reached out to it’s employees and involved them in the process, alleviating the moral issues.

Case History:

“A major US manufacturer of engine parts that serviced the automobile industry faced significant layoffs after the industry collapsed in 2008. After downsizing, the company’s top performers were left to keep the business moving. With employee moral at an all time low the key managers put together teams by department to brainstorm ideas on cost saving initiatives, new product opportunities as well as new sales strategies. To launch the team’s brainstorming meetings the human resource department ordered the Gold Standard Bank with the theme: ‘We are banking on your ideas!’

The message let these employees know that their ideas were crucial to the company’s long term success and that management was open to listening to new ideas.  This increased employee moral and engaged them into the process of creating new ideas and strategies.”

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