Don't Neglect Employee Morale In A Down Economy

Difficult economic times require a leadership style focused on the people who execute corporate strategy. As leaders in the insurance industry, one of the major challenges confronting us is the cultivation and management of our most valuable assets--our employees. What can we do to alleviate the psychological toll this economic crisis is taking on our work force?

Undoubtedly, communication is critical to successfully managing employee fears and concerns in these difficult times.

Communication should provide an understanding of how the economy affects business and strategy--as well as how it does not. It is important to keep all employees informed about the state of their departments and the organization as a whole.

Individuals tend to think the worst in difficult situations. Lack of communication can lead employees to assume their jobs are at risk. In addition to low morale and lack of motivation, neglecting to communicate with employees could push them to search for new employers.

What is seen on the news and the front page of the newspaper may or may not directly affect your company. Often, the most visible economic indicators (such as the stock market) are not the most appropriate or accurate factors in determining corporate strategy.

Employees may have distorted understandings of how these factors will personally impact them. Leaders must recognize this and combat water-cooler talk by making sure the real message is relayed.

Discussing your organization's current state with employees at all levels--not just senior management--is imperative. A candid discussion about what is going on in the industry, as well as where your company stands, can provide an increased sense of security and an overall boost to morale.

Here are some tips on how to motivate insurance company and agency employees in this challenging and scary economy:

o Keep employees engaged.

Employee morale often plunges during a down economy. Although many companies are eliminating programs focused on employee morale for a hunker-down mentality, now is the time to concentrate on your corporate culture. The value of employee recognition does not disappear in a difficult business environment.

Remaining committed to career development programs, even if your organization is not growing, can provide employees with a clear direction that will evolve when opportunity returns.

Managers should work with employees to understand their individual career goals and to align them with the company's goals.

Employees must understand how their personal goals and responsibilities roll up into the organization's objectives. Motivate your team by providing a road map for both personal and organizationwide success.

o Stick to your mission, vision and values.

Often, it is difficult not to focus solely on the challenging situations at hand. Rather than highlight the industry's current downfalls, emphasize other aspects of your organization such as your mission, vision and values.

It is likely your corporate values include commitment, courage and teamwork. Leverage these ideals within your organization and demonstrate them on a personal level. Be an advocate for your organization's mission and vision statements, and show that it is possible to block external distractions and adhere to the company's core messages.

Demonstrating passion and enthusiasm for your company's goals will help you to become a motivational force within the organization. If employees sense you are not concerned about the unstable marketplace, their anxieties will diminish as well.

o Be an agent of change.

Undoubtedly, the economy will stimulate changes within your organization, and most people have a natural fear of change.

Developing an organization that embraces change as an opportunity rather than a hindrance allows for the flexibility that most competitors lack.

Establish this outlook enterprisewide by conveying the upside and opportunities that change offer, as opposed to the risk that stagnation brings. Create acceptance by connecting change to the long-term strategy.

o Retain top talent.

Despite this difficult economy, demand for "A"-players persists. In fact, the insurance industry remains in a competitive labor market.

According to the Bureau of Labor Statistics' November report, the unemployment rate for insurance carriers and related activities is only 3.8 percent, compared to the general unemployment rate of 6.7 percent. Many positions, such as actuaries and underwriters, are always in demand, no matter the economic situation.

How can you retain top talent within your organization?

Identify your key players--both current managers as well as those at staff levels who demonstrate the potential to become future leaders. Even if you cannot increase monetary compensation, provide them with greater responsibility, autonomy and special projects, and outline opportunities for advancement.

In difficult economic times, it is often tough to see the bigger picture. But the economy will not always be where it is today. Retain the talent you will need to take advantage of an economic upswing.

It has been historically proven that recessions eventually create opportunities. Those insurance companies and independent agencies that take advantage of each new cycle tend to do so because they have the right people in place before the market turns.