New York Lawyer
October 10, 2002

Q:
Our firm is having a big problem with low morale because of the fear of layoffs.

Everyone�s jittery, and rumors are rife. We hear bland things from management that "no layoffs are planned", but everyone can see that things have slowed down.

So not only are people anxious, they also are getting nasty due to competitiveness, undercutting one another. Everybody is trying to look good so they won�t be the one axed.

I think something should be done to address the low morale.

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A:

Low morale is a frequent problem in workplaces. Low morale due to fear is an especially unpleasant and tricky situation.

Remember that in uncertain economic times the options for management are limited. They don�t want to make promises that they can�t necessarily keep, like assuring people that layoffs absolutely will not occur. Therefore concrete communication that makes definite assurances about the future will be in short supply.

Having said that, there are things that can be done to ease the tension.. From management�s standpoint, it should be clear that it�s the way people are treated during bad times that will determine the level of loyalty and respect they feel during good times (should employees survive that long).

It�s important to keep up common courtesy, which can go by the wayside when times are tense. Another way to lift flagging spirits is to have firm or practice-area social gatherings.

Management should step up communications. Make sure that partners speak with a unified voice. If some partners are speaking confidently of the future and others are privately all about gloom and doom, the double speak will send rumors into orbit. If unfounded speculation does veer out of control, have a rumor quashing session, in which you encourage even the zaniest questions; listening to a person in authority swat away ridiculous rumors can help defuse tension.

Have partners reach out to associates on a proactive basis to talk about what�s going on. The tendency may be to freeze up, but in wobbly times it�s actually preferable to reach out more, even if the information can�t be specific.

Emphasize that people should feel free to talk to partners and members of management. Merely being available to talk, and being seen as open, can increase trust and understanding.

If nasty, ultra competitive behavior arises, have some mechanism so that it can be dealt with, perhaps by a person within the firm or an outside designated person who can keep information anonymous but be apprised of what�s going on. Also, if partners become aware of people who are sabotaging other people, they should step in and manage the situation.

Looking on the bright side, some extra time means there are opportunities to do things that ordinarily fall by the wayside.

This is a great time to increase feedback about performance, so often in short supply when business is booming. Management can also offer suggestions to associates who have time on their hands so that they are using their down time in a positive way.

It�s a good time to pay attention to marketing issues, increasing your expertise in a certain area, write an article, get to know people you haven�t gotten to know before so that you�re on their radar screen, and develop some business.

It�s hard to be positive when times are negative, but just letting morale sag lower and lower without any attempt to boost it up guarantees a paranoid and jittery work environment.

Sincerely,
Holly English
Principal Consultant, Values at Work