Tough Times

We are in construction and the troubled industry has hit us hard. Other companies in our area are experiencing the same trouble. For months the company owners have struggled with the decision to either close shop or file bankruptcy. Just a couple of years ago it was well respected in the industry and one of the top, successful companies in our area. It was THE company to work for - great benefits, a very decent bonus program, the results of random employee surveys we conducted at the time were positive, and we often had comments from visitors or clients commending us for the positive work environment and team player attitudes of our staff.

Well, that is all gone now, we went from 100+ employees to just 24. Pay raises and COLAs were cut a couple of years. A very small number decided to quit when they saw the trouble coming, but most were lay offs. The owners are demonstrating an will to try everything they can and know of to keep above waters for survival. Their persistence, determination and a "we will not give up" attitude has inspired many to "hang in there". We all know the end is coming sooner than later. Somehow, finance has managed to come up with payroll so far.

Of course this has affected morale greatly. Although as the "HR cheerleader", I insist to managers that we must continue with "business as usual", it's become difficult to make that stick. We do what we can to motivate each other and even hold potlucks once or twice a month. Don't remember who suggested a "care cart" a while back - THANK YOU for that - we have that randomly and employees really enjoy and appreciate it. Of course the costs for these activities are shared by employees.

Any other suggestions that might help us thru this difficult time?

Comments

  • 6 Comments sorted by Votes Date Added
  • Gosh, Tere, just reading your post was heart wrenching. To see a company that really had its act together struggling to survive makes one wonder.

    Here in AZ the construction industry has been hit hard as well. But what we are seeing here is that the contractors are now pushing remodeling, additions and renovations. The good news is that the prices for those services are better than competitive. The cost of the material is about the same but the cost of the labor is lower than in previous years.
  • The cost of the material is about the same but the
    >cost of the labor is lower than in previous years.

    How can that be Rita? I thought Arizona joined Oklahoma and ran all the illegals out of state,


  • During the second half of 06 and first half of 07 we had 5 layoffs going from 425 ees down to 175 ees. It was tough to maintain morale. Last summer we lost several key people due to lack of confidence in the business. Lots of talk about getting sold or shut down. So, I understand what you are going through. We tried to keep everything as normal as possible, maintaining all the ee programs we had before and made sure we didn't cut out anything that could hurt morale further as a mere cost savings measure. The CEO visited often and spoke with ee's personally walking around and acting the cheerleader. That may have done the most good, an assurance from the guy at the top meant far more than anything we could have done in HR.
  • Tere, I am very sorry to hear of your difficulties. My only advice is as a leader you "create" reality. You can create a negative reality (the economy is terrible and we will all probably lose our jobs soon) or you can work to create a positive reality (this is a tough situation but its going to make us a stronger, better company that really knows how to pull together).

    It sounds like you have a fairly solid team despite the difficulties you have been through. I would keep emphasizing the positives. I am sure that EVERY organization that is around for a while has its difficult time.

    There is an excellent book on "Resiliency" called "The Resiliency Advantage". It discusses how people have turned adversity into positive blessings that have dramatically improved their lives and careers. Its short enough to read in a weekend.

    You might also schedule a team retreat if you can find an inexpensive place to stay. Talk openly and honestly about the challenges you are facing and ask for ideas on how to weather this storm.

    If you need a getaway, at the beach for yourself, you are only a few hours drive from here. Let me know. Id be happy to arrange a stay for you if I could.
  • Hey all, thanks for your feedback. The great news about the job market is that it's a healthy one - at least in the Puget Sound area. Most of our previously laid off employees were re-employeed within 2 - 4 weeks from when they left and ones who didn't was by choice. I will keep you posted on our situation.
  • Wow! That's great news. Now all you have to do is get that great company back on track.
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