A page-turner year: implications of workforce attitudes in the face of crises. (Current Practices).

Presenter: Jack W Wiley, Ph.D., President & CEO, Gantz Wiley Research

Dr. Wiley reviewed three topics investigated by Gantz Wiley Research, a firm that provides strategic employee and customer metrics and the guidance to transform that knowledge into improved business results. The areas were:

1. National study of employee opinions in the context of the past decade

2. Degree of change since September 11, 2001

3. Business leadership in today's economy

National Study of Employee Opinions

Established by Gantz Wiley Research over 15 years ago, WorkTrends[TM] surveys over 10,000 adult U.S. workers annually. In the 2001 survey administered in October/November, special emphasis was given to reactions to 9111. It was known that at least four additional stories in 2001 would influence the general context in which people work: the war in Afghanistan, the failing economy, the anthrax scare, and the Middle-East conflict. In the backdrop of these events, two major concerns were expected to arise in the 2001 survey results:

1. Lower corporate earnings and the attendant corporate downsizing would generate a sense of financial stress, which in turn constricts employee "quality of life." The lack of resources and pressure for results would place unrelenting demands on the workforce.

2. Because corporate performance had declined and leaders are held responsible, they must not be leading well. The credibility of leaders has suffered.

The actual results differed from these expectations. Perceptions of leadership ability and credibility, as well as pride in company, were up significantly over the 1999 and 2000 surveys. These findings held across regions of the country, industries, and company size. Other surprising improvements were seen in the views of workload and fair pay. The only declines--and they continued from surveys since 1990--were in two work satisfaction items: liking the work I do, and having a sense of personal accomplishment. Possible explanations to be explored include generational differences, the rise in service versus manufacturing jobs, and a higher percentage of people working in less-enriched jobs.

Employees are better informed than ever today about the pressures global competition and terrorism put on the economy This understanding seems to translate into greater tolerance for the actions companies must take in a recession.

This overall rosy picture may be anchored in reactions to the recession and terrorist attacks. The current recession has had the effect of decreasing interest rates but increasing unemployment and the number of layoffs. Layoffs normally take a toll on employee opinions, but even employees reporting layoffs in their companies felt better about their companies, their own importance to company success, and leadership credibility. How layoffs are handled has a major impact on surviving employees. A shutdown with all employees losing their jobs is less demoralizing than experiencing the uncertainty caused by waves of layoffs. Employees are better informed than ever today about the pressures global competition and terrorism put on the economy. This understanding seems to translate into greater tolerance for the actions companies must take in a recession.

Degree of Change Since September 11, 2001

When asked specifically about the effect of 9/11 on their companies, employees reported varying experience. Overall, 43 percent reported some level of change; 33 percent reported no change. The greatest amount of change was seen in the hotel and airline industries and service jobs. The least effect was in the health care and light manufacturing industries and in production/warehouse jobs. The changes were seen in four areas:

1. Operating with increased security/threat of disruption

2. Dealing with the economic downturn

3. Dealing with increased emotional distress

4. Encountering a greater sense of values and community EXHIBIT 1 How Has the Workplace Changed? Increased Security/Threat 43% Economic Downturn 23% Emotioal Distress 8% Sense of Values/Community 7% Other * 18% * Major "Other" topics direct impact, travel, improved business (Source): Giantz, Wiley Research, 2001) Note: Table made from pie chart

When asked how long they thought these changes would last, 45 percent thought there was some permanency to them ("the world will never be the same"), while 37 percent thought they would only last up to a year. Government employees were more likely to see changes as permanent, along with those in supervisory or professional jobs. At the temporary end of the spectrum were those expecting a rebound, primarily hotel employees and those in sales jobs.

Compared to those experiencing the least change, those experiencing the most change had a higher level of company pride, felt they were more informed, and that leaders were setting a clear direction for the company. Most employees reported no change in their personal productivity at work, with 11 percent reporting higher productivity and 13 percent reporting decreased productivity.

The 9/11 crisis was a leadership test. More passed than failed, and communication turned out to be the critical success factor. Additionally, the U.S. workforce emerged with greater resolve. These workplace findings complement those found in public opinion polls of the U.S. President's ratings and satisfaction with the direction the country is taking.

Business Leadership in Today's Economy

Based on these positive results, the question is, How will management use this depository of confidence and trust? Dr. Wiley recommended several prescriptions:

1. Focus on customer strategies. Don't fall prey to looking internally and forgetting the sources of growth and revenue.

2. Keep workers in the "loop." One of the great lessons of the recent past is that well-informed employees are important assets. They have a greater feeling of control, respond to adversity better, and are more likely to remain productive.

3. Promote the future and "brand." Employees respond to clear direction and are motivated to make things better. If the brand stands for something, both customers and employees will stand behind it.

4. Reinforce priorities. Be thoughtful in setting priorities that are achievable, and stick to them.

5. Keep two-way communication open. If it hasn't been said before: communicate, communicate, communicate...and listen, listen, listen.

Confidence and trust in leadership and maintaining trust are the domains of management, but HR can play a pivotal role in assuring management understands the importance of both. The survey discussed here was conducted before the scandals at Enron, WorldCom, and elsewhere came to light in 2002. Some deterioration in the perception of leadership's abilities and credibility will probably be revealed in the next survey. What an opportunity for HR to step in and exert its power and influence for the benefit of companies and employees alike!