Managing Rumors

HR leaders are reporting that economic fears are prompting more employees to eavesdrop and gossip about the impact on potential job losses. Transparency, communication efforts and decisive action are needed to ease uncertainty, experts say.

Eavesdropping and gossip are on the rise in U.S. workplaces as the recession continues to raise employee fears of potential job losses, a new study suggests.In a poll of 494 HR professionals, conducted by the Society for Human Resource Management, nearly one-quarter (23 percent) of respondents said they've had to deal with an increased number of eavesdropping incidents in the last 12 months as a result of the uncertainty about the U.S. economy.

Examples of such incidents include employees lingering outside conference rooms or near the HR leader's door to catch wind of possible layoffs or terminations.

Also in the survey, half (54 percent) of HR professionals reported an increase in gossip and rumors about downsizings and layoffs among their employees, and about the same percentage (53 percent) said they had to address those rumors in the year between October 2007 and October 2008, when the study was conducted.

"What this clearly tells us is that we need to step up good communications in organizations and that's where HR can really show its leadership," says Steve Williams, director of research for Alexandria, Va.-based SHRM. "The more transparent you are, the less likely you'll get gossip around the recession" and people lingering around other people's desks and offices, trying to hear something."

We're seeing these incidents across the board, in all industries and in companies of all sizes," he says. "No company is immune. Fear is fear and gossip is gossip. It's happening everywhere."

Striking though the increase in eavesdropping and rumors may be, "it's perfectly normal to expect employees to pay much more attention to what is happening, or may happen, with their employers in difficult economic times," says Mark Hyde, whose self-named consulting firm is located in Rochester, Minn.

"Of course there will be gossip and rumors; expect it," he says.Without supplying any statistics,

Dr. Richard A. Chaifetz, chairman and CEO of Chicago-based employee-assistance provider ComPsych, says his company has been getting significantly more calls in the last couple of months "from employers concerned about how employees are reacting" to the plunging market and economy.

"People are trying to get information in ways that are, shall we say, less than direct," says Chaifetz.

"We're hearing about people trying to get into closed-door meetings or people looking at other people's mail. Employers have to be very mindful, right now; very careful that they don't let information out prematurely.

"Make sure, if at all possible, any difficult decisions are not discussed in e-mails or written communications," he says. "Leaks of information, especially at a time like this, could be cancerous in an organization."

Chaifetz also stresses the need to move quickly when making hard choices, such as whether to go through layoffs or a restructuring, and to "be direct, open and honest in your communications."

"Once you make that decision to lay people off, get that out there as a clear plan," he says. "If additional layoffs will be necessary down the road should the economy continue to worsen, communicate that as well. The best way to combat gossip in a company is to move decisively and quickly."

Sometimes, combating the problem with proper preparation, quick decisions and open and effective communication is easier said than done, says Megan Slabinski, executive director of Menlo Park, Calif.-based The Creative Group.

"Sharing information quickly and candidly can prevent employees from speculating, but there are times when confidential conversations among top officials are necessary," she says.

When private meetings must be held, "take those closed-door consultations away from public view to eliminate the buzz of what's happening. Go off-site if you can."

Chaifetz warns, however, that too many off-site meetings and out-of-the-ordinary gatherings by senior leaders can also give rise to fear and speculation. When announcements are made, Slabinski says, companywide conference calls, state-of-the- state meetings or brown-bag lunches are suggested. "HR really needs to pull people together at that point and open its door," she says.And while open communication "can't be possible for all things," says Williams, "it's the perception of communication that is important." The best way to create and convey that perception, he says, is to tell employees "why certain things can't be communicated at that particular time.""Be honest. Tell the truth. People tend to think those in management are evil, holding back information ... . In so many cases, that couldn't be further from the truth," Williams says.

"Often, management simply doesn't know why something is happening or how long it will last. Sometimes, simply saying you don't know something or the reason behind something, but are willing to address it," takes the sting off what could be perceived as malicious silence, he adds.By the same token, everyone from the top down should be on the same page when employees come asking, says Hyde."Many companies make the mistake of overlooking the front-line supervisors and only inform senior management about what is going on," he says.

"The front-line leaders need to know something since they ... have the best opportunity to stomp out any bad rumors."Even worse, when some of the front-line leaders inform their employees they have no idea what is happening with senior management, it makes things worse and fear heightens," Hyde says.Lastly, says Slabinski, companies shouldn't be afraid to discipline the "bad apples as soon as possible."

"Employees who are at the heart of gossip or who are caught eavesdropping and then spreading rumors need to be told to stop," she says. "If their behavior persists, it's perfectly acceptable for HR to address the problem in a punitive way," such as verbal or writing warnings, or worse.The spreading of bad information, however it's done, "stifles productivity and adds to stress in the workplace," Slabinski says. "HR leaders are completely in their rights" to discipline these culprits.

[About the Author: Kristen B. Frasch became the managing editor of Human Resource Executive in August of 2000 after more than 20 years of experience in business and consumer journalism, 14 spent as an editor and writer for various Philadelphia area newspapers.]

Efficiency at the Workplace

When countless office hours are wasted efficiency, productive and profits of a company are affected. To boost efficiency HR managers must take control, spur employees to work faster and smarter for competitive edge.

Often employees waste countless office hours affecting efficiency and productivity and also the profits of the organisation. Onus is on you as HR manager, for enhancing efficiency and productivity of your company, and ensuring the greater profits.

Mr Ramesh Gelli launched the Global Trust Bank during the 1990s envisaging efficiency and service to the customers as a prime differentiator. In a short span of time, GTB has become a success story. Today it is noted for its efficiency, profitability and prompt service.

To achieve efficiency at the workplace, the HR manager must take control of the workflow. For this, proper planning and new technological tools can help the HR manager to streamline his work The technological support will help the boss to enable his subordinates to work smarter and faster. In doing so they both work better as a team. As a result the company gains the competitive edge.

Top class efficiency at the workplace means more quality time and greater profits. To know whether you as the HR manager are efficiently running your company, look into the following three aspects:

• Time and money;
• Taking control of the workflow; and
• Options for the future.
  

Time and money - Employees waste countless hours in preparing and maintaining files. This old method of office management is highly counterproductive and inefficient. To improve the situation, you can switch over to the technology age and do away with the mountain of files. It not only saves workspace but also lowers the operational costs. However, examine the computer system to see if it is the best industry-specific system available. If the company is having separate computer systems for different tasks it will be losing productivity, which affects the bottom line.

Taking control of the workflow - By being more efficient the HR manager can take control of his workflow. New technology can help him to be more efficient. In turn, this will spur the employees' to work faster and better. Interestingly, a designer computer system that allows multitasking and shared data will inspire the staff to work in cooperation. Double entries can be avoided and thus time and money saved.

Options for the future - When the company cuts costs and increases efficiency, automatically profit margin goes up. However, as a HR practitioner, you should not be satisfied with it. Because a feeling of stagnation will set in. To avoid that condition, look ahead. You may want to extend your resources beyond your office environment involving remote employees. It allows employees to be able to work wherever and whenever they want. In turn this cuts down overheads for the company. When technology saves time and money, and improves efficiency, productivity gets a boost. Automatically, business grows. By being more efficient the HR manager can take control of his workflow. New technology can help him to be more efficient. In turn, this will spur the employees' to work faster and better. Interestingly, a designer computer system that allows multi-tasking and shared data will inspire the staff to work in cooperation. Double entries can be avoided and thus time and money saved.

Hidden store - HR practices

Managing Human Resources successfully is the toughest challenge organisations encounter. HR encompasses a sum total of human intelligence, skills, talents and knowledge. Organisations rely on these resources of employees for their prosperity and success.

Out of the door

Organisations often perceive employees as cost investments rather than a knowledge investment. However, employees invest their intelligence and skills in the organisation and if any of their expectations are not fulfilled, they decide to leave for a better place. The reasons for an exit could be low compensation, domestic problems or change in goals.

Research reveals that knowledge workers generally quit because of the organisation's inability to leverage employees' talents.

Saviour

The exit of the traits and skills of employees is a major concern of organisations. It creates a work gap. To fill-in this gap, organisations need employees with the same skill sets. 'Knowledge Management' comes to organisations' rescue here.

"Knowledge Management embodies organisational processes that seek synergistic combination of data and information processing capacity of information technologies, and the creative and innovative capacity of human beings ," said Yogesh Malhotra, CKO, Brint institute for Knowledge Management.

Hewlett Packard Laboratories has developed an employee directory of internal experts called Connex. It helps in locating subject experts.

Knowledge Management enables organisations to impart the required knowledge to the new recruits or the successors of the exiting employees. It facilitates the enhancement of capabilities and creativity of employees.

Fusion -New perspective

Exit interviews and Knowledge Management

Conventionally, HR used exit interviews as tools to strategise employee retention, ascertain job satisfaction and design reward strategies. Questionnaires reveal the reasons for leaving, comments on the work culture, job responsibilities and remarks of the employee. The information extracted is only about the organisation. But exit interviews may be used for 'determining the knowledge necessary for performing various tasks'.

The municipal authority of the city of Toronto for instance, employed an intern to develop its database. He developed it for forwarding invoices to all domestic animal owners of the city. The intern left on completion of his job.

The governing body faced problems. The permanent employees did not know the access and execution of the programme. The capital used to develop the database became a dead investment. The loss can be attributed to the absence of an exit interview. An exit interview would have enabled sharing of the information essential for the execution of the programme.

Knowledge management and knowledge sharing avert information gaps that result from employees exiting along with their expertise and ensure continuity of work.

Knowledge capture - the essence

Exit interviews must be designed to capture work knowledge. To encapsulate employees' work knowledge, the interview must be employee and organisational specific. It must satisfy the employee and the organisation. To capture knowledge organisations require:

Objective

The organisation should first determine the objective of interview. Its primary objective should be to enhance the employees' performance. Essentially, an exit interview should concentrate and highlight, 'what, how and why' of employees' work.

"The exit interview should focus on the achievements and performance of the employee. And we try to get insights about his learning, growth, reasons for leaving etc in the interview," said Joydeep Bose, then GM, (Corporate HR), Wipro.

MphasiS, the company that designs and builds IT architecture, applications and services, is one of the few companies where exit interviews are knowledge focussed. "It helps in identifying various training needs, opportunities for supervisory skill development and improving competitiveness. Besides, they identify legal issues and provide an excellent documentation process." said Vivek Dayal, Global head, Corporate Communications.

Issues related to compensation, communication, job satisfaction, employee morale, overall work environment and comfort level with technology provided form an important part of the interview. Employees' accomplishments, approach to work and working relationship with seniors and organisation are crucial to enhancing performance.

Plan

Exit interviews ought to be planned right from the inception of the organisation. It helps in handing over responsibilities and identifies the right employee to be entrusted with the job responsibilities of the departing employee. Consequently, an efficient employee replaces the exiting employee.

Input

Employees' inputs at handing over stage before leaving the organisations are the most significant. Organisations and concerned authorities must let them concentrate on dispensing and gathering their knowledge. This is the most productive period for the organisation as the knowledge is passed on to the successors. Exiting employees must not be coerced to finish pending works.

2-D of knowledge

Working knowledge can be segregated into-explicit and implicit knowledge. Explicit knowledge is the relevant material or content that employees use for routine work. Implicit knowledge is that which is hidden in the working pattern of the employee.

The interview should elicit the employee's explicit knowledge related to work.

Explicit knowledge

The material or content used during routine work may be manually written or compiled in folders in the employee's personal computer. These folders or files should be carefully transferred to the library or some secure destination of the organisation.

Helpful notes or educational tips may be appended to this information. This imparts better understanding and eases the new employee's workload.

Implicit knowledge

For implicit knowledge, organisations need to depute successors to the exiting employees prior to their departure. Capturing such knowledge needs regular interaction between the exiting employee and his successors.

Reviewing the important jobs performed by the employee is the first step. This reflects in their work plans or job descriptions. Discussing the working style and approach towards work of exiting employee is necessary. This may reveal the additional support required for perfect execution of the job.

Knowledge sources

Employees' work circuits are crucial information pools. Employees derive work knowledge from their peers and superiors. The interview should reveal these sources and their contribution. An organisation must maintain these learning relationships.

Model: questionnaire or e-mail?

Exit interviews are most effective when conducted face to face. Pre-formatted questionnaires are impersonal, exasperating and unproductive. In-person interviews help in understanding the mental, emotional and social concerns of the exiting employees better.

For effective and efficient interviews organisations need:

Interviewer: He is the soul of the interview. His skills determine the accomplishment of the interview's objectives. Outsourcing an interviewer is a viable option. Outsourced interviewers are trained and more objective and can understand and interpret the discussion with employees. Employees are more at ease to interact and part with their knowledge with an outsider.

Timing: For desired results interviews must be properly timed. The collection of information also should be timed. If the separation of the employee is not voluntary or employee is emotionally charged up at separation, the interview can be delayed. Postponement helps the employee settle down and brings out honest information. In regular cases exit interviews must be scheduled close to the separation date.

Atmosphere: An exit interview must be conducted in a congenial atmosphere. It must facilitate healthy interaction. This affects the employee's comfort levels and gives desired results.
Rapport: Organisations need to establish a 'parting relationship' with exiting employees. This is necessary as these employees might return, or the organisation might consider them for reemployment. Also the organisation may require the employees' services. Continuing relationships could help locate prospective recruits.

Follow-up: Follow-up has two tasks, documentation and analysis. Documentation is as important as the process. It aids and routes through the actual process of follow-up action. Analysis of the information gathered during the exit interview determines the necessary action to be taken. It gives a clear picture of on-the-job issues.
Invaluable

Employee input is in fact necessary at all stages of work. It ought not to be restricted to exit interviews only. Exit of employees cannot be anticipated. Thus, HR must encourage knowledge sharing and incorporate knowledge based exit interviews in the organisational culture and practices.

Effective exit interviews not only disclose employee related issues but also solve many business problems. They facilitate communication of employees' contributions to the organisation. Consequently, both employees and the organisation feel satisfied.

Organisations must realise the worth of their investment and the precautionary measures to be employed to retain invaluable knowledge workers and ensure profitability