Are your Staff Expendable?

Last week I had the privilege of speaking at the NSW Local Government HR Conference and the theme was on how to employ, enthuse and engage staff. Like many industries, the local government sector is facing rapid change. The conference highlighted a number of key impacts upon organisations, which are applicable across all industries. A key focus was how these impacts affect staff and how organisations need to be cognisant of potential fallout when letting staff go.

Expendable – that’s how staff may be viewed in these tough economic times. I’ve written before about the faces and stories behind every person retrenched, but what of the organisations that are undergoing change? They too may suffer negative impacts. For example:

• Damage to brand. In today’s socially adroit media landscape, fingers do the talking. If an organisation doesn’t care for its people, word will get around. Well-articulated and meaningful mission statements and conduct policies are important. More importantly, they mean you must walk the talk.

• Loss of talent resulting in knowledge and experience gaps. Losing good workers is a reality of retrenchments, but remember that losing exceptional staff may impede organisational recovery. Treat your people well: Both those who are leaving and those who are staying. You never know when previous employees’ knowledge and experience may be a valuable addition in future.

• Increased costs when the organisation needs to re-hire. Don’t burn bridges. Respectfully maintain professional relationships with past employees, as you never know when they may be keen to re-join the organisation in future, which reduces your hiring costs.

It’s simple: Look after your people – they are the business, and contribute to its brand, intellectual capital and relationships. When times are tough, think of other ways to tighten the belt as opposed to saving money fast through making positions redundant.