4
Employee Relations and Retention
How Do I Keep Good Employees and Maintain Working Relationships at All Levels?

YOU HAVE MADE THE EFFORT to find and hire the best candidates. You have oriented them to your company culture and spent time and resources training and developing them. Now you want to keep them—keep them working for your company and not the competition, and keep them content, motivated, and focused on the business.

When employees are unhappy in the workplace, when morale and productivity lag and turnover is high, the root problem is usually not compensation. Generally, these difficulties will be people-driven, stemming from poor communication, a perceived lack of appreciation and recognition, lack of clear paths for career growth, and unresolved grievances and conflicts.

This chapter discusses ways you can open and improve lines of communication, resolve conflicts before they become crippling, and let your employees know that they are valued.

FOSTERING EFFECTIVE WORKPLACE COMMUNICATION

Ask executives and managers what is standing in the way of better effectiveness in their businesses, and more often than not they will mention the need for “better communication.” And they are usually correct. Poor communication does account for a multitude of workplace woes, including interpersonal conflict, wasted money and effort, poor productivity, legal exposure, low morale, and high turnover.

Whether your organization has five, five hundred, or fifty thousand employees, the way it communicates will directly affect worker focus, morale, and commitment. What is good communication? It is providing the right kind of information and delivering the right message to your employees clearly and in the appropriate manner. Good communication is also about encouraging—and having adequate mechanisms in place to allow—employees to deliver information to management.

“What types of information should I be sharing with my employees?”

You should pass along information that will better enable employees to do their jobs, as well as news about the company’s progress, business changes, and other matters that affect the workforce. Be sure to communicate information to employees at all levels of the company, and don’t forget individuals who telecommute or work at remote locations. Types of information to share include:

• Vision, mission, and goals. It doesn’t matter what term you use, but you should let employees know what the company stands for, where it is going, and the progress it is making toward fulfilling its objectives. Employees want reassurance that management has a clear direction. Even if your company does not have a long-term business plan, talking with workers about where you would like to be in a year—or within the next six months—will help instill confidence and increase focus.

• Business results. Make it a practice to inform employees how the business is doing financially. Whether or not you share this information, your workers will likely know if the company is doing well or is faltering. However, communicating in greater depth on this subject will make employees feel involved and will help them better understand the reasons for management actions. Communicate financial results in a fashion that you are comfortable with and that your employees will understand. The information you share can range from complete profit-and-loss statements to percentage increases in revenue to cost of supplies.

• Triumphs and disappointments. People who know that their work has contributed to a successful enterprise will be more motivated and fulfilled. So it is confounding that some organizations will report a large new customer or long-term contract to a newspaper but not their own employees. Do not be afraid to report on disappointments as well as successes. By disclosing information about situations that have not worked out so well, you can pass along what you learned from the experience and increase the chances of improving the next time.

• Organizational and business changes. If your organization is going through major changes such as a layoff, restructuring, office move, or sale of a line of business, tell employees sooner rather than later. You’ll help to quell rumors and speculation, and your employees will feel flattered that you respected them enough to share this information. If your organization has recently gone through a merger or acquisition and you now have a group of new people on board, prompt and honest communication of postmerger procedures and the vision for the organization going forward will help deter the best employees from both companies from jumping ship.

“How open and honest do I have to be?”

There are some situations where you will not be able to pass on information because you are legally restricted from disclosure. Examples are pending mergers or acquisitions, securities transactions, or situations where you have signed nondisclosure agreements. Barring these restrictions, give workers the information they need to understand the business and direction of the company and to be successful themselves. Never lie to employees or tell them half-truths. If people ask you questions that you are unable to answer for reasons of confidentiality, don’t falsely tell them that you have no information on the subject. When they find out you have been untruthful (and they always do!), you will lose credibility in the long run. Instead, you might answer that you are not in a position to share the information at this time.

“What are the best methods of communicating to employees?”

Regardless of the astonishing range of communications technology available today, the best method of communicating most important information is in person. Depending on the circumstances, it may be better to communicate to people individually, in small groups, or if practical, to all employees at once. Some companies hold quarterly employee meetings at which the president and key executives report on business results and new developments. In other businesses, the president will meet with small groups for breakfasts or pizza luncheons where employees can ask questions and share their concerns. When you have employees at remote locations, regular visits from the president or other senior staff members will decrease their sense of being isolated from the company as a whole. The more critical the information you have to share, the more important it is that you communicate the news in person.

Letters from the company’s president or owner or a senior executive are good ways to provide general information that employees can share with a spouse or family member. A letter mailed to the employee’s home can summarize organizational performance, thank employees for their efforts, provide forecasts of upcoming business, or reinforce important workplace matters that would be strengthened by home discussion, such as the company’s response to press about the business.

Newsletters or “e-newsletters” are easy to produce and can be used to inform, reinforce company culture, announce company contests, and celebrate birthdays, new births, or service milestones. Gone are the days in most workplaces where paper memoranda are circulated around the office. E-mail has become the chosen way to communicate, but it often falls short as a method of primary communication. Though e-mail is convenient, it lacks the personal touch, and it should never be used to tell people about vital or controversial matters or news that is likely to arouse employee emotions. Also, since employees get numerous e-mails every day, they are more likely to accidentally delete the message or overlook its urgency.

If you have a very important message to communicate, get it out repeatedly, through a variety of formats.

“What are the best methods to get information from our employees?”

Since communication is a two-way process, establish ways for your workforce to communicate with you. Employees will feel empowered and valued, and you will be able to glean important data that will help you run your business more effectively and act on those matters about which your workers are concerned. Never assume that you know what your employees are thinking. Instead:

• Encourage employees to ask questions in company, small group, and individual meetings. When holding small group meetings, try mixing employees at all levels to get a variety of perspectives.

• Conduct employee focus groups and surveys about attitudes and opinions. You may be surprised by what you learn.

• Have a procedure for employees to express grievances, and make sure you follow up promptly and consistently with your policy.

• Establish a suggestion box where employees can submit questions or voice concerns. Devise a response format, and respond promptly and consistently to let workers know that you take their input seriously.

• Consider establishing an employee hotline run by an independent provider, or setting up in-house confidential voice mail boxes, so employees can report problems that they might be afraid to report otherwise.

• Walk around informally and talk to your people. Casual conversations can yield a lot of information. Managers should not sequester themselves in their offices.

“Can poor communication on the part of individual managers create retention problems?”

Absolutely, and this problem is exacerbated because many managers think they are better communicators than they actually are. There is an overused, yet true, saying that people do not leave their jobs, they leave their bosses. In employee exit surveys, the most frequent employee complaints about former supervisors involve poor communication skills. This isn’t surprising, because businesses do not always hire and promote managers based on their communication and management skills. Many individuals possess a wealth of knowledge in their fields and are highly skilled in the technical aspects of their jobs, but they fall short when it comes time to assign projects, convey expectations, and make employees feel good about working for the team.

There are certain common manager communication problems that, if identified, can be addressed. Do you recognize yourself or anyone in your organization in these descriptions?

• Managing by e-mail. Far too many managers use e-mail as a substitute for personal interaction. Would you try to build a relationship with an important new customer via e-mail? Would you hire a key executive without meeting this individual? Of course you wouldn’t, and neither would most experienced businesspeople. However, the same managers who know that personal contact is key to interpreting a person’s character and reactions and establishing commonality often choose to “manage by e-mail”—even when workers are in offices a few steps away. While no one should seek to discuss sensitive or delicate matters electronically, even everyday business is better handled through personal contact when possible. More direct contact helps create better rapport and trust.

• Lack of clarity. Many managers assume that when they give instructions or discuss a business situation, everyone understands them and is ready to take action. Then they are amazed and upset when the resulting project bears no relation to the outcome they had in mind. Often, different people make different deductions from the same information, and they proceed in good faith to do the opposite of what the manager expected. Clear communication results from asking the right questions, gaining clarity, and confirming what we have heard. Only then can people achieve a common understanding of a business issue or course of action. Managers need to be aware of and facilitate this process. When giving assignments or instructions, ask open-ended questions to make sure the employee understands. Instead of saying, “Do you understand?” you might ask, “What steps will you take to complete this task?” Never make employees feel inadequate for asking questions.

• Poor listening skills. Since every communication involves at least two people with differing priorities, needs, and perspectives, it is just as important for managers to listen to their staff as it is to be heard. In addition to giving assessments and instructions, solicit feedback from employees. Ask if there is anything you can do as a manager to make their jobs easier or more satisfying. Consider their suggestions and treat seriously the concerns they raise.

• Failure to give consistent feedback. Some managers don’t tell employees what they are doing right or wrong during the course of the year, and then, at annual review time, they drop a bombshell on the unwary. While a well-considered annual performance evaluation is a valuable communications tool, employees resent when feedback is a once-a-year event. They also miss the opportunity to learn from their successes and mistakes. People do not like surprises, and they want an opportunity to develop and improve throughout the year. Provide continuing, constructive, on-the-job evaluations focusing on situations as they arise, while they are still fresh in everyone’s memory.

• No tact and empathy. Some managers have no problem giving feedback, as long as most of it is negative. They can pick away at the most minute details of a worker’s perceived problem areas or announce mistakes and deficiencies in front of others, but never offer a word of thanks or praise. Constant criticism is demotivating. Highlight the positive as well as the negative, correct mistakes without getting personal, and treat people as you would wish to be treated. Others will be more inclined to listen and respond.

• Too busy to manage. It’s true: Managers are busier than ever with their own heavy workloads, but many forget that an important part of a manager’s job is managing. It is critical to carve time out of your schedule for regular one-on-one and group employee meetings. While it is totally appropriate to make employees aware of your time pressures, offer your undivided attention during these meetings. Taking telephone calls or allowing other interruptions conveys to employees that you do not consider their concerns a priority.

“Once I have identified an interpersonal communication problem, what can I do to fix it?”

Improving communications involves a multifaceted approach, depending on the situation and the individuals involved. Since many people are not aware of their limitations in communicating, sometimes merely making them aware of their actions will be enough to bring about positive change. Most of the time, however, a bad communication style will be deeply ingrained in the manager.

You can use coaching and mentoring to effectively attack interpersonal communication issues. The coach can be someone within the organization or an outside consultant. For executives and senior-level managers, you will likely have more success with an outside coach or consultant. When coaching managers to improve their communication skills, keep in mind the following guidelines:

Be explicit and use concrete examples. Instead of saying, “You are not a good listener,” you might say, “I noticed in the staff meeting that you talked right over Jane when she had questions about the deadline.”

Show the negative impact on the manager of the bad communication. It is human nature that self-interest is the factor that most effectively generates change. For example, don’t simply tell the manager that he is not clear in his instructions. Try saying something like, “Because your staff had to redo their work so many times, you missed your project deadlines. If you take the time to explain your assignments at the outset, you and your team will have a better chance to earn the full quarterly productivity bonus.”

Remove poor communicators, if necessary, from managerial responsibilities. Some people, no matter what you do, will not develop into good communicators. After unsuccessful coaching, you may rightly determine that they should not be managing others. Often, they will be just as relieved as you are when they are free of these responsibilities.

Small group training is an excellent way to teach your executive or management team to improve their management and communication styles. There are myriad fine outside and in-house training sessions on communication, management, and leadership.

STRUCTURING REWARD AND RECOGNITION PROGRAMS

You may be able to lure new hires through the door with an attractive compensation and benefits package, but if you don’t maintain a positive working environment they will leave to work elsewhere—sometimes for jobs that pay less. While it is important to provide fair pay, the key to creating an outstanding work environment is making people feel appreciated and recognized for the work they do. No one likes to feel unnoticed or taken for granted. Reward and recognition programs let workers know that their efforts count.

An employee recognition program is different from an incentive program. Under an incentive system, you pay money or other valuable compensation for meeting specific performance goals. If a salesperson meets her sales targets, she will get a specified bonus, or if a development team gets a new product to market on time, each member will receive a certain amount. Recognition programs, on the other hand, appreciate people for their efforts as individuals, often for positive contributions that do not directly affect the bottom line. Recognition programs can be a way to thank the receptionist who always greets visitors with a warm smile, or to acknowledge the financial analyst who puts forth the extra effort to make new department members feel welcome. Unlike incentive programs, reward and recognition programs can be inexpensive. While you may not be able to provide significant incentives in difficult times, it is easy and desirable to maintain a continuing program of employee recognition and appreciation.

“How do I develop strong reward and recognition programs?”

The biggest mistake businesses make is assuming they know how employees want to be recognized and structuring programs that do not reflect the real needs of their workers. As your workplace is made up of a variety of diverse individuals, one type of recognition effort will probably not work for everyone. Create a system that reflects both individual and group needs and the type of culture you want to develop or maintain.

Determine the types of behavior and performance you want to reward. Do you want to encourage good attendance? Team efforts? Creativity?

Solicit employee input. If you want to get an accurate perspective on the types of recognition your employees would value, ask them! You can distribute surveys or hold individual or focus group meetings to attain this information. Get input from people at all levels of the organization. Different levels of employees may have different needs and motivations.

Survey supervisors and managers who will be responsible for selecting the individuals who receive rewards. They will have some valuable feedback concerning how decisions should be made.

Organize a committee to review employee feedback and make suggestions for activities going forward.

Communicate the program clearly and consistently to employees. If you are implementing a formal program that has specific eligibility and performance requirements, explain them fully. Misunderstandings generate bad feelings.

Be prepared to be flexible and to inject novelty and variety into the program. While employees may initially enjoy receiving a mug with the company logo for their efforts, when their desks are cluttered with company mugs over the years, this reward will not seem very special. Your goal is to inspire enthusiasm.

Be genuine. If your managers shell out empty praise or you implement programs by rote or out of a perceived obligation rather than a real desire to reward and inspire, your employees will spot your insincerity. In the end, they’ll feel insulted and patronized rather than rewarded and inspired.

“What types of recognition programs should I consider?”

Your efforts should include both formal and informal recognition. The possibilities are limited only by your imagination, but the concepts that follow can serve as a starting point.

Praise. Praise doesn’t cost a dime, and there are few people who don’t appreciate a sincere compliment or word of acknowledgment. Instill in your managers the importance of praising employees both for outstanding effort and positive results. Praise is most effective when it is specific and delivered at the time when workers do something right. Rather than saying, “You have a good attitude,” say, “Several customers have praised your responsiveness on this project.” This statement gives the employee direct reinforcement and will encourage him to continue that behavior.

Small, Informal Reward Items. These include inexpensive symbols of gratitude that are usually presented spontaneously, by the employee’s manager. These modest “on the spot” tokens are very effective, but should not be given so often that they begin to seem routine or arbitrary. Examples of these rewards are thank-you notes; T-shirts, mugs, or other trinkets; plaques and certificates; impromptu, informal luncheons; parking spaces; gift certificates; or movie and sporting events tickets.

Awards Luncheons or Dinners. These meetings are more formal than impromptu pizza parties and are usually held periodically to celebrate milestone service periods. Awards luncheons and dinners are also excellent methods of recognizing exemplary employees in front of their peers. Don’t just stand up and hand your outstanding workers plaques or pins at these events. Build camaraderie and motivate employees to strive for the reward by publicly explaining why the recipient’s work mattered, sharing stories and humorous anecdotes.

External Rewards. Consider nominating outstanding employees for outside rewards. Chambers of commerce and other business associations, trade organizations, and other professional groups frequently request nominations for people with noteworthy business accomplishments. Community or industry recognition for a job well done is extremely flattering.

Larger Merchandise Rewards. As merchandise awards are more costly, they are usually reserved for service awards or the achievement of a significant goal. As a rule, it is not the value of the gift that is important but the recognition itself, and awarding items of substantial value on a frequent basis can result in employees focusing more on the prize than on their work. Some organizations successfully award employees “points” for designated behaviors or achievements, which they can accrue and redeem for merchandise in the future.

Internet-Based Reward and Recognition Programs. While online programs lack a personal touch, they can be a fast, convenient, and inexpensive way to administer and track reward programs. There are many online vendors that offer software packages and record-keeping services that allow employees to track the status of their awards and redeem them for merchandise online.

“Is it safe to hold a holiday party for my employees?”

A holiday party is a common way to thank workers for their efforts during the year and to thank customers for their support. However, it is important to plan these events carefully. As an employer, you may be held legally responsible if an intoxicated employee gets into a car accident on the way home from your event. Other inappropriate employee behavior can result in harassment charges, workers compensation claims, and other legal liabilities for a company.

Most companies still find that the benefits of a party outweigh the risks, so they hold some type of holiday festivities for their workers. You can minimize risks by observing the following standards:

Hold the party off company premises and outside of normal business hours.

Notify employees that attendance is optional and avoid negative actions or comments when an employee does not attend.

Circulate a memo to all employees, before the party, emphasizing the importance of moderation in drinking (if you are serving alcohol) and reminding them that the company’s policies regarding sexual harassment and discrimination apply to company parties.

Take precautions if you do serve alcohol. Hire bartenders or caterers—don’t let company employees mix drinks. Have plenty of nonalcoholic beverages on hand, and provide entertainment or some other activity for attendees besides drinking. You might consider providing vouchers to limit the number of drinks served, or limit the hours during which alcohol is served. Instruct bartenders not to serve minors and to stop serving individuals who seem intoxicated. Designate employees to circulate during the party to spot those who do not look sober. Provide transportation home by means of designated drivers or company-paid taxis for those who request it or are deemed unable to drive safely. If you are holding the party at a hotel, negotiate reduced-rate hotel rooms for employees.

Encourage employees to bring spouses, significant others, and children, if appropriate and financially feasible. This practice increases the likelihood that the occasion will be festive but professional. Misbehavior is much less likely to occur in a family environment.

Take any employee complaint about harassment or any other improper conduct at the party seriously and investigate it just as you would complaints about regular activities during business hours. Don’t write off an allegation just because the behavior occurred at a party.

MAINTAINING WORK-LIFE BALANCE

A significant amount of an employee’s waking hours are spent at work. Not long ago, for most people this meant showing up at their workplace for a defined time period each day and, depending on the organization, putting in additional hours or “face time” after regular hours or on weekends. Increasingly, employers are finding that helping workers create and maintain a balance between their home and work lives is key to retaining the best employees. Through alternative work and scheduling arrangements and other life- and family-friendly programs, employers that help employees reduce stress and gain personal satisfaction reap the benefits of a more loyal, motivated, and productive workforce. These programs can make your company more desirable to prospective employees and have even been shown to help decrease absenteeism among existing workers. There is no “one size fits all” approach to flexible scheduling. Whether a particular program will work for you depends largely on the specific needs and characteristics of your workforce. Before creating and implementing any plan, survey your employees to determine their needs so that you don’t spin your wheels developing something that will not be seen as a benefit.

“What types of alternative work arrangements can I consider?”

Flextime. Flextime is a term for variable schedules that allow employees to vary the start and end times of their workdays while still working a standard number of hours within a given workweek. Employers designate a set of core hours during which all employees must be at the workplace, as well as the hours that are “flexible” for the employee. For example, you might designate the core hours as 9:00 a.m. to 4:00 p.m. and permit your workers to start their day between 7:00 and 9:00 a.m. and leave between 4:00 and 6:00 p.m., depending on the time they start. Flextime is an attractive option to help employees deal with family issues, commuting patterns, and educational, volunteer, and wellness activities. Flextime programs can be structured on an ongoing basis or occasionally as needed by an individual. These programs are also attractive to employers because they can generate significant goodwill at virtually no cost to the organization.

Telecommuting. Telecommuting, or telework, which allows employees to work from their homes or other locations outside of the office either occasionally or every day, is becoming a mainstay in American business. These arrangements help employers to attract and retain excellent workers no matter where they live, help save on office overhead, and can boost productivity when employees spend less time commuting and suffering the frequent interruptions of an office setting.

Job Sharing. Job sharing allows two or more employees to share the responsibilities of one job. It is a way to attract and keep qualified individuals who, either because of conflicting priorities or lifestyle choices, do not desire to work full-time. Usually, the employees who wish to share a job will present a proposal to management that outlines the job coverage schedule and how responsibilities will be divided. Compensation is agreed between the company and the job sharers, but employees working less than full-time hours may receive reduced or part-time benefits.

Compressed Workweek. A compressed workweek allows full-time workers to complete the minimum weekly required hours in less than five full days. For example, to meet a required forty-hour workweek, employees might work four ten-hour days a week and get the fifth day off, or work eighty hours within a nine-day period and get the tenth day off. There are no specific legal requirements for structuring compressed workweeks, except that you must comply with any state or local overtime regulations applying to workdays of longer than eight hours.

While compressed workweeks are usually best suited to manufacturing businesses, hospitals, or positions where contact with customers is prearranged (e.g., doctors, lawyers, accountants, etc.), if this type of program fits in well with your business, there is no reason not to consider implementing it.

“What should I consider in determining whether these work arrangements are appropriate?”

Not all positions are appropriate for alternative work arrangements. Some jobs require a physical presence in the office during normal working hours. A telecommuting arrangement will not be successful unless the individual has the discipline and focus to work independently and achieve specified goals. When considering job-sharing arrangements, decide whether both employees are equally qualified to do the job and whether the nature of the position is such that it makes business sense to divide the work. You have the discretion to be selective about extending these benefits to workers, as long as you do not discriminate. If you deny individuals the flexibility they request, explaining your reasoning will help to diffuse resentment.

In addition, just because an employee works at home doesn’t relieve you of the obligation to comply with minimum wage or overtime requirements, nor are you exempt from all responsibilities to provide a safe workplace. Workers can and have filed workers compensation claims for injuries that occurred while telecommuting. Train workers on how to avoid foreseeable job-related injuries, such as repetitive motion or carpal tunnel disorders, and recognize that harassment and discrimination can still occur involving workers not present in the office.

“How do I implement these alternative work arrangements in my organization?”

Once you have determined that your workers and your organization could benefit from alternative work arrangements, develop clear written plans or policies and communicate them to employees. While the plans will vary according to the details of the arrangement, you will want to include:

• A detailed description of the parameters of the program (e.g., the core and flexible hours included in a flextime program or acceptable work schedules for a compressed workweek, the types of positions suitable for the program, and other eligibility issues)

• Instructions for submitting employee requests under the plan or policy

• Criteria for managers to use in deciding whether to approve or reject requests, or for creating a new position specifically designed for a nontraditional work arrangement

• The consequences for misusing the program

• A statement that the organization has the right to change, suspend, or terminate the programs at any time and for any reason

Upon approving an individual employee for participation in a flextime, telecommuting, or job-sharing program, it is helpful to draw up a written agreement signed by both the manager and employee with specific details of the situation. You can use this “contract” to evaluate the success of the arrangement or as documentation in the event of a future employee problem.

PROVIDING MEANINGFUL CAREER GROWTH

While you may have some excellent employees who are content to remain in the same job for years, many workers will outgrow their jobs and feel the urge to move to new challenges. It is tempting to resist moving capable workers when they express interest in a new role, focusing on how difficult it will be to replace Jane as the shop foreman or Joe as the office manager and the normal disruption that transitions bring. And business conditions will not always allow you to approve a requested move. However, employers who do not routinely encourage their good performers to take on new responsibilities within the organization, or who do not allow for career growth, risk losing their most ambitious and valuable workers.

Career advancement can involve moving up in the ranks of management, but not everyone can have a management job, and some people don’t even want the stress that goes along with one. Savvy companies will also develop career growth strategies that involve meaningful opportunities for lateral movement to keep employees loyal to the organization, stimulated, and motivated to succeed.

“How do I foster career growth for employees at my business?”

A good career path program is one that benefits both employers and employees, where there is some synergy between what the employee wants from his career and what the employer can offer in light of specific business needs. The variety of available career options will generally depend on the size and nature of your business. Smaller firms may have fewer open positions across a smaller range of job functions than large companies, but they may be able to offer employees more responsibilities and the opportunity to create a larger role for themselves. Growing companies may have more opportunities for advancement than businesses that are stagnating or are experiencing hard times. Analyze the needs of your business and determine what types of career growth you can and cannot offer your employees.

Large companies will commonly develop clearly defined career structures, with set criteria to progress from level to level. Small and mid-size employers are less likely to have this type of formal program. However, all companies can take certain steps to creating practices that encourage opportunities for advancement and growth.

• Find out what your employees want their careers to look like. Their answers may surprise you. Programs or practices that sound great on paper mean nothing if they are not meaningful to employees. You can get an overall view of how your employees view their careers through group surveys, but nothing beats one-on-one discussions. Develop a plan with the individual regarding the path for achieving her goals. If you believe the employee’s goals are not realistic, either due to the company’s business circumstances or your perception of her abilities, be honest and let her know what you can provide.

• Tie development to your business plan. Look at your company’s short-and long-term business goals to determine what skills you will need in the future. Communicate these goals to employees and provide training opportunities, both internal and external, to enable them to acquire the knowledge and skills that will be critical to future growth.

• Promote from within. Advertise job openings and promote from within whenever possible. Some employers automatically assume that the only qualified candidates for new openings come from outside the company. This attitude is dispiriting to the workforce. For open positions, clearly state the requirements and the level of performance the employee must attain and maintain in the current position in order to be considered for a new one. If you believe an individual is not qualified for a desired position, explain your reasoning so that there is no misunderstanding.

• Provide training and development opportunities on a regular basis. Whether this training involves learning new skills, keeping a worker current on knowledge needed in his current position, or providing mentoring to facilitate professional development, employees appreciate your commitment to their careers. Some companies are ambivalent about providing “too much” education or training, fearing they will lose employees with company-financed expertise or recently acquired degrees to other companies, especially if appropriate advancement is not available in their own organization. While you can’t prevent every defection, just remember that these former employees can be great ambassadors for your organization, often becoming customers or referring business.

• Stress the employee’s responsibility for career growth. Emphasize that while the company will provide opportunities, individual employees must be proactive in taking advantage of these opportunities and proactively managing their own careers. Explain that advancement is dependent on performance and results, not just seniority. Encourage employees to make their career aspirations known, to seek feedback, and to be on the lookout for new opportunities to take responsibility, learn, and grow.

RESOLVING WORKPLACE CONFLICTS

No matter how well-run your organization is, disputes, conflicts, and grievances will inevitably arise. As individuals, we have our own ideas and goals, and it is only natural that in pursuing our own agendas we will sometimes be at odds with others with differing objectives and viewpoints. Life in business organizations is no different. In fact, today’s businesses are especially vulnerable to conflict. They employ an increasingly diverse workforce, operate in a complex global economy, and navigate pressures to deal with rapid change and increased productivity requirements.

While all businesses contend with conflicts and disagreements, some are able to turn their experiences into learning and growth opportunities, while others let the animosities devolve into anger, low morale, high turnover, and employee lawsuits. The difference between positive and crippling results is directly connected to the organization’s ability to identify healthy versus unhealthy conflict and to manage and resolve disputes and grievances before they get out of hand.

“Isn’t all organizational conflict undesirable?”

Some amount of conflict is not only desirable, it’s also necessary. Without a broad range of ideas presented by persons with diverse backgrounds, experiences, and points of view, innovation is virtually impossible. Conflict can also present an opportunity for personal growth. When we learn the skills to work out our differences and to develop approaches that take into account the needs of others, we become more effective and aware businesspeople.

The difference between “healthy” and “unhealthy” conflict is this: While healthy conflict revolves around the vigorous exchange of ideas in the best interests of the organization, unhealthy conflict is based on anger, frustration, and personal animosity. The key to effective conflict management is to create an environment that encourages workers to challenge ideas and forbids them from attacking people.

“Are there systems we can implement to prevent and resolve workplace disputes?”

While it is tempting to ignore a problem and hope that it resolves itself, conflicts rarely do. Instead, they fester and spread. By taking a proactive approach, you will be able to uncover and address problems before they escalate into full-blown feuds or lawsuits. There are several practical techniques for preventing and resolving differences in the workplace. Some organizations have formal conflict-resolution programs; others resolve differences through less structured means. Larger companies will often use internal ombudsmen or independent negotiators or mediators to facilitate communications among the parties, but in smaller companies, the success or failure of conflict-resolution efforts will depend on the conflict-management skills of the managers. Every business must select the methods that best fit the culture of the company and its resources.

The most common conflict-resolution program is the “open-door policy,” which gives employees the opportunity to resolve problems with their managers or coworkers. Traditionally, these programs provide that employees first bring the problem to their supervisors (or the next level in the hierarchy if the problem is with the supervisor). If the supervisor is unable to resolve the issue, the employee may elevate the grievance to the next higher level of supervision, and then to successively higher levels until the problem is satisfactorily addressed.

While open-door policies give workers a defined, structured way to have their issues heard, there are limitations to the process. An open-door policy is only as effective as the conflict-resolution skills of the managers addressing the issues. Additionally, these policies rely on employees to initiate the issue-resolution process. Often, individuals will not come forward, and it will be up to the manager to recognize the problem and take steps to resolve it. Whether or not you have a formal issue-resolution procedure, it pays to train managers and supervisors to build awareness about conflict management and to enhance intervention, mediation, problem-solving, negotiation, and other conflict-resolution skills.

Provide individual coaching for executives and managers who require special assistance with conflict management, either as an element of their career development or to help them deal with special situations. Executives must set a standard from the top. If middle managers feel disrespected, attacked, or stifled by senior management, chances are that they will pass this negative attitude down to the employees they supervise.

“Are there basic conflict-resolution skills we all can learn?”

Yes. When a conflict arises in your workplace, consider these guidelines:

Call the disputing parties together in a neutral area, such as your office or a conference room. Treat the meeting as a serious occasion. Do not take telephone calls or allow other interruptions. Tell them that you have observed or been informed that there have been difficulties between them, and ask to hear each person’s side of the story. Listen carefully and empathetically. Commonly, people will interrupt each other to argue their side of events. Firmly state that you will hear only one person at a time, that you expect everyone to listen to each other, and that everyone will get a chance to speak.

Do not show a bias toward any individual’s point of view. If you show sympathy with one of the parties, the other will invariably lose trust in the process and stop sharing openly. It is not your job to be the judge of who is right and wrong. You are there to help the parties accept their differences and work toward a meaningful solution.

Keep the discussion focused on the issue at hand. If the participants begin to ramble or drift off topic, gently guide them back. Focus on the present and the future, rather than letting parties bring up old, unrelated gripes. Never permit personal attacks such as “John is an idiot” or “Mary is lying.” Do not interject your own opinions or experiences. This dispute is not about you.

Probe until you understand the root cause of the conflict. Even substantive disagreements are often fueled by interpersonal differences. John and Mary may be appear to be arguing about setting a project timetable, but the problem could have roots in John’s perception that Mary disrespects him. Address the interpersonal issues before attacking the substantive ones.

Do not ignore emotions. Behind every dispute there are real emotions, such as hurt, anger, and betrayal. While you should not dwell on the emotions involved, it is important to acknowledge that they exist. Expressing their emotions will help the parties obtain closure and move on.

Work with the parties to find a way they can both come out “winners,” focusing on common goals. If John and Mary are fighting about the details of a project timetable, remind them that while their approaches may differ, they both have an interest in seeing that the project is successful and if the project fails both of them will suffer. Ask each of them about the compromises they would be willing to make and those that they would like to see from the other to ensure the success of the project. The plan does not have to be a complete compromise, but the result should be acceptable to both individuals. Sometimes early efforts to resolve the conflict will be fruitless. In this event, be prepared to stop the meeting and resume it at another point, giving the parties the opportunity to think through the points discussed. When you have reached an agreement, put the plan in writing so each person has something he or she can refer to and work with.

Follow up periodically. If the conflict is significant, don’t expect miracles overnight, but look for indications that the individuals are acting on the plan as agreed and taking steps forward. Tell the participants that it is okay to take small steps, and recognize their accomplishments as they attempt to work through their differences.

WHEN EMPLOYEES LEAVE: CONDUCTING THE EXIT INTERVIEW

Even if you have made every effort to create a positive work environment, employees will leave the organization. Sometimes the reasons can be completely personal, such as relocation or the desire to stay at home with a child. Other times they stem from the employee’s dissatisfaction with the company. Conducting structured exit interviews with departing personnel is an excellent way to identify causes of turnover. Employees leaving the organization are likely to be more honest with you than those you currently employ. You can use the results of exit interview surveys to determine whether there are underlying problems that are causing people to leave, and to build a strategy for improved retention.

“Who should conduct the exit interview and what should they ask?”

A member of the human resources department or other neutral person will typically conduct the interview. The employee’s manager should never conduct the interview because the employee would be reluctant to be completely honest, especially if the manager’s behavior or style contributed to the decision to leave. Interview those employees who have voluntarily resigned from the company. Fired employees are less likely to give you objective information. You may choose to use a written questionnaire, but with verbal interviews you can ask follow-up questions. Conduct the conversation in a quiet place where it will not be overheard, or on the telephone, and assure the employee that all responses will be kept confidential.

Ask questions that will elicit information about the perception of your company as a place to work and will help you to identify trends developing in any specific area or with an individual manager. (See the sample exit interview questions in the Tools and Templates section.) To maintain confidentiality, keep exit interview data separate from the employee’s personnel file.

“What happens if the employee reports harassment or other illegal conduct in the exit interview?”

Occasionally, employees will report in the exit interview that they resigned because of to a supervisor’s sexual harassment or commission of fraud. Even though the employee is leaving and did not file a complaint during the course of employment, you are still obligated to treat the matter seriously. Ask employees for full details of the conduct and why they chose not to report it earlier. Conduct a full investigation, and if you find the complaint to be justified, take appropriate corrective action regarding the offending party. (See Chapter 8 for more information on how to conduct employee investigations.)

Sound employee relations are important in all phases of the employment cycle, including departure. You may feel inconvenienced or upset when workers leave, but do not try to make them feel uncomfortable about their decision or treat them as the enemy. A former employee can be an ambassador for your organization to potential employees and customers, and you may end up hiring this person again in the future.