Employees Behaving Badly


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In the heat of budget cuts we can sometimes forget about the human impact the recession has on all of us. Its important to take a moment a strive not only for a healthy balance sheet but a healthy workforce.

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Employees Behaving Badly

  1. 1. Employees Behaving Badly:Symptoms of a Stressed Economy<br />
  2. 2. About Pivotal<br />Experience: 25+ years/ Private/ Canadian<br />Market Position: broadest range of HR solutions<br />Outsourced HR management<br />HR Help Desk<br />HR Projects<br />Outsourced Payroll<br />Recruiting<br />
  3. 3. Workplace Stress<br />Bad Economy<br />Layoffs<br />Greater workloads, increased productivity<br />Longer hours<br />Smaller/Cramped workspaces<br />Office Clutter<br />Shorter response time requirements<br />Shifting responsibilities<br />Reduction of vacation<br />Diverse workforce with different process methods<br />
  4. 4. Current Economic Situation<br />
  5. 5. Employer’s Responses<br />Temporary Layoffs<br />Terminations<br />Reduction of pay<br />Work-share<br />
  6. 6. The stages of stress<br />
  7. 7. 2004 Study Results<br />Employees who feel overworked make more mistakes<br />Higher benefit usage/costs<br />Managers must distinguish positive stress signals<br />Some stress is good and necessary<br />
  8. 8. Response to Symptoms<br />Drug & Disability claims are increasing<br />1 in 4 employees agreed workplace stress is overwhelming, became physically ill<br />Health & Safety<br />H&S budget cuts result in more casualties<br />People don’t report injury for fear of job loss<br />Legal<br />90% increase in employees suing for stress-related issues<br />Employer has a duty to accommodate<br />
  9. 9. Aggressive Workplace Behaviours<br />1 in 5 admitted to being more ruthless<br />1 in 3 said they would be self-promoting in order to ensure they prove their value<br />Nearly half would stay in a job for fear of low seniority at a new organization<br />1 in 10 would take a pay cut to keep their current job<br />
  10. 10. Increased Workplace Violence<br />Prepardis Inc. forecasts incidents could rise<br />Continued layoffs combined with pressure of providing for families<br />Workers are on edge fearing loss of job, finances, home, etc.<br />Recent examples<br />Bill 168<br />
  11. 11. Increased Workplace Violence<br />Nearly 1/5 of incidents involve violent victimization<br />Men and women equally likely to report violence<br />27% of incidents involving male victims resulted in injuries, 17% involving women<br />Violence more common in certain employment sectors<br />
  12. 12. Personal finance is the number one source of stress; five times higher than the next highest, health.<br />
  13. 13. Increase in Mental Health Issues<br />91% of people w/ personal debt report deterioration in mental health due to stress and depression<br />Long-term health effects physical health problems-psychosomatic disorders, heart conditions and cancer<br />Mental health symptoms<br />
  14. 14. Recession Fatigue: a form of chronic psychological stress caused or heightened by an individual’s economic circumstances, and severe prolonged enough to degrade their personal effectiveness in work or non-work situations<br />
  15. 15. Reactions to recession fatigue<br />Sense of frustration, uncertainty, disappointment, ineffectiveness<br />Fatigue, confusion, malaise<br />Personal isolation from family/friends at work and home<br />Dilemma between the temptation to quit or give into despair<br />
  16. 16. Practical features of Recession Fatigue<br />Heavy drain on resources, personnel and business<br />High input / low output<br />Fragmentation of human and physical resources<br />Declining personal efficiency<br />Decline in innovation, new projects and initiatives<br />Increase idle resources<br />Increasing misemployment<br />
  17. 17. What does this mean for employers?<br />Employees will take time off to deal with financial problems<br />Take extended work breaks sometimes trying to deal with financial stress<br />Spend excessive time at work dealing with personal financial problems<br />Decreased job productivity<br />
  18. 18. Other Concerns…<br />Relationship between societal economic downturns and an increase in disability rates<br />CIPD in UK survey of 1300 HR practitioners in 2003:<br />Found casual absence increased 10%<br />LTD increased<br />
  19. 19. Decline in Employee Engagement<br />Visible decline in engagement<br />Engaged employees will help companies pull through the recession<br />Companies are cutting back on engagement investment<br />Decreasing levels of loyalty and trust<br />
  20. 20. Leading Financial Issues Addressed by EAP, 2008<br />
  21. 21. What can YOU do?<br />Prepare for the inevitable recovery<br />Be resilient and manage performance and growth<br />Your best capital is the employees and their creativity<br />
  22. 22. Strategies<br />Open communication; good or bad<br />Know where you DON’T want to cut costs<br />Focus on what will never change<br />Cut non-essential services; ask for input<br />Get employees to assist in cost cutting<br />Always treat employees with respect, especially if cutting headcount<br />
  23. 23. Strategies<br />Continue to focus on careers, growth and development<br />Promote EAP programs<br />Try to prevent serious financial stress<br />Improve employee engagement<br />Help employees stay healthy and resilient<br />
  24. 24. Questions<br />www.pivotalsolutions.com<br />