Co-founder of InterviewBit and Scaler.
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Layoffs appear to be a sign of the times as the country continues to brace against the current recession. Unfortunately, it seems that the wave keeps coming in the tech sector.
By the end of 2022, more than 160,000 tech workers in the US had lost their jobs. More than 150,000 workers have been laid off since the start of 2023, with a new round of job cuts every week at both large and small tech employers.
I have great respect for the employees who form the heart of these companies. Having survived a workforce downsizing, employees who remain take on more responsibilities and stress, navigate a fractured company culture, and often deal with the guilt of still having jobs when many of their co-workers don’t. do more. Great sensitivity is needed right now from business leaders, both in how they communicate their decision-making to teams and in how they help the remaining employees stay engaged. At a time when employees are most needed to drive a business forward, the potential lack of commitment can be costly: the Gallup State of the Global Workplace Report 2022 found that “disengaged or actively disengaged workers are costing the world $7.8 trillion in lost productivity,” or 11% of global GDP.
Based on my own experiences ranging from a software engineer who works hard to move up the ranks to an owner and operator, here are a few tips to help my fellow entrepreneurs motivate their employees at any time, including during adversity.
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1. Celebrate successes – and everything in between.
Make it a habit to celebrate wins regularly and put employees in the spotlight when they make an impact for the company, no matter how big or small. The impact of positive feedback on employee satisfaction and overall retention cannot be underestimated. This was revealed in a 2017 study 70% of employees said their morale would “improve tremendously” if they heard a simple thank you from managers more often. Knowing they are doing a good job goes a long way in getting employees to work on the bigger picture.
2. Have an open door policy.
While it’s up to employees to ask questions when they’re confused about a task assigned to them, it’s up to company leaders to be transparent about what’s going on behind the scenes with company operations and overall company performance. Leading with compassion and respect and maintaining an open-door policy for questions from team members is imperative at all times, but especially during times of internal turmoil. After layoffs, seeing leaders demonstrate transparency and accountability helps remaining employees maintain trust in the company and the decisions made.
3. Prioritize an inclusive culture.
After the far-reaching social impact of recent years, workplace leaders have made commitments to drive cultural change and expand diversity initiatives. But how far have these measures really gone? According to a 2021 study, 25% of employees feel like they don’t belong at work, with less than a third (31%) view their leaders as inclusive. Representation is critical, but the sense of belonging is what ultimately leads to real change and results for a company. In fact, if corporate leaders are inclusive, employee engagement increases by 150%, leading to more shared decision-making, more idea generation and less staff turnover.
4. Enter the trenches.
In my experience, employees are more inspired by executives who are ready to roll up their sleeves and work alongside them, regardless of economic uncertainty. That hungry, I’m here to learn mentality should be the driving force of all entrepreneurs, and I believe it’s one of the best ways to show your team, “I’m with you.”
5. Provide professional development opportunities.
Invest time and resources in upskilling and continuing education opportunities for employees. Those hungry to advance their skills jump at the chance to experiment with new technologies and projects. By encouraging employees to continue learning, you help them become better at what they do and ultimately bring that knowledge back to the betterment of their teams and your business.
While the economic downturn shows no immediate signs of slowing down and many are still cautious about what lies ahead, workers need a gauge ahead of the storm. As business leaders, it is inherently our job to fulfill that role. As layoffs continue to dominate the headlines, remind your teams that this is just a phase. Downturns pass and true job security doesn’t come from where employees are in their careers, but rather from the skills they’ve acquired along the way.
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Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.