Leading and managing staff in a recession

For those charities working within a hostile procurement regime, the recession has been with us for some time. For others, there may be new threats to funding looming, perhaps offset to some extent by rising demand for your services. Whatever your situation, in order to keep staff motivated and engaged at a time when every employee in every sector is asking ' What does recession mean for me?', it is vital that you communicate regularly and honestly with your staff. Involve them in coming up with possible solutions to the problems. They need to be confident that their leaders are taking a long term strategic view of how to position the charity to take advantage of new opportunities as some funding streams diminish, and to keep as many jobs as possible.

Staff also need to know they will be treated decently if job losses are inevitable. Where this is the case, you will need clear and transparent processes for restructuring, making redeployment decisions and presenting the choices available to individuals. Redundancies need careful handling within the law, paying particular attention to issues of collective and individual consultation and compliance with the Statutory Dispute Resolution Procedures before issuing notice to individuals. All line managers should be briefed in good change management practice, so that they understand the kind of management behaviours that will make redundant employees feel they have been treated decently by the organisation. For example, you may not be able to afford individual outplacement counselling for every individual, but perhaps you can put on half day interview skills training for groups of affected staff.

Many charities are finding themselves having to reduce staff costs by reducing salaries and terms - for example detaching from previously guaranteed annual pay rises linked to some external index such as rate negotiated by NJC for local authorities. It must be remembered when seeking to change the contractual terms of 20 or more staff, there is a process to be followed in line with the TULR(C)A 1992 legislation which involves, amongst other stipulations, meaningful consultation over a minimum period with the recognised Trade Union or elected employee representatives. Consultation on and implementation of changes need to be meticulously planned well in advance and carefully carried out.

If you do have to reduce terms, or give smaller cost of living increases than previously, pay great attention to and promote your 'total reward package' which includes all the things that employees value which go beyond substantive benefits, including: interesting and challenging work with clear goals and standards, an enabling environment, managers who 'walk the talk' and act the values of the organisation, opportunities for development and growth, and good work life balance.

You will maintain motivation and morale during hard times if you have excellent managers operating sound and transparent line management processes. This is achieved through well-designed and consistent leadership and management training and by holding managers accountable for their performance in people management.

Never cut training and development activity more than is absolutely avoidable during a recession. It is by having the right staff with the right attitude and skills that any organisation successfully weathers hard times: your people are your capability to innovate and to transform short-term adversity into long-term opportunity and advantage. If time off for training is the first thing to get sliced, you will have an underdeveloped and resentful workforce and thus undermine the future ability of your organisation to survive in a competitive environment. If you can't afford to pay so much to external trainers, look at training some of your in-house stars to deliver training and coaching to their colleagues, or other creative and less expensive ways of facilitating the ongoing learning and development of staff.

Above all, during hard times, as employers we should all strive even more than usual to be open, honest, fair and decent with all our staff. In times of big insecurity, the little things really matter. Make sure all your messages and actions reinforce how much you value your people.

Helen Glles MBE
HR Director
Broadway Homelessness and Support
Managing Director
Broadway's Real People
http://www.broadwaylondon.org/Home

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