Managing Employees in Crisis Challenges and Best Practices

Managing Employees in a Crisis

The Covid19 pandemic has presented unique challenges for human resource professionals and business leaders alike. Such crises will usually cause unpredictability and fear among employees that could result in emotional disturbance, feelings of loss of control, and disorientation. Depending on the scale of the crisis, organizations may be forced to administer pay cuts, cancel bonus programs, adopt new modes of working such as teleworking, and freeze hiring (Aguinius & Burgi-Tian, 2021). For instance, at the height of the Covid19 pandemic in March 2020, 42 percent of companies in Canada and the United States (US) had frozen hiring (Aguinius & Burgi-Tian, 2021). In April 2020 alone, over 390,000 people in Europe and 7.7 million workers in the American hospitality industry lost their jobs (Aguinius & Burgi-Tian, 2021). Globally, 37 percent of companies in the US instituted bonus reductions, 42 percent administered salary freezes, and 29 percent administered pay cuts between March and May 2020 (Aguinius & Burgi-Tian, 2021). Such measures, though necessary for the company’s survival, may lead to fragmented team cohesion, decline in morale, and reduced work performance (Zheng, 2020). This text expounds on the employee-management challenges that organizations may have to address in a crisis and the recommended strategies for addressing each challenge.

Challenges in Managing Employees in a Crisis

Unexpected Changes in Working Conditions

According to Hamouche (2021), employee management refers to the various efforts that an organization undertakes to ensure that employees do their best every day to help the organization realizes its objectives. During a crisis, one of the fundamental challenges that leaders face in achieving this is altered working conditions that lead to different functioning (Hamouche, 2021). In the wake of the Covid19 pandemic, for instance, organizations altered their working conditions to allow employees to work remotely. However, not all jobs can be carried out remotely. For instance, manufacturing jobs may require physical presence at the workplace. Thus, the human resource personnel have to determine which jobs are to be carried out remotely, what to do with those that require the employees to report physically to the workplace, and which employees to lay off because of the situation brought about by the crisis (Hamouche, 2021). All of these unexpected decisions and choices, as the author further indicates, pose huge challenges for managers and could have some serious implications on the mental health of employees.

For jobs that can be carried out remotely, the managers have to devise ways of investing in technological tools that could facilitate communication and help employees work effectively away from the office (Hamouche, 2021). They also need to consider possible realignments of compensation structures, as well as differences in performance management, and supervision support for employees working remotely. Altered working conditions could undermine employees’ psychological health as they could cause misfits between the person and the environment. According to Hamouche (2021), they could also cause job dissatisfaction as a result of from altered socialization processes.

Strategies for Addressing the Challenge

Available literature recommends that managers devise diverse activities to support their employees in the handling of the psychological challenges associated with altered work environments. For instance, they could create virtual socialization activities for employees forced to work remotely by organizing virtual coffee or lunch breaks for them to socialize with each other and share any challenges they may be facing. This would ensure that all employees feel like part of the organizational culture despite being away from the physical office (Hamouche, 2021). Such practices would help support employees affected by altered working environments even when they are separated from their colleagues.

Further, managers need to invest in systems that enhance constant communication with employees to create feelings of normalcy despite the changes (Nguyen, 2020). One way to do this is by ensuring that employees are provided with the right technological resources such as mobile devices to work as effectively in their new environments as in their normal work environments (Hamouche, 2021). Further, the organization needs to invest in technological tools that would ensure constant communication between managers and employees working away from the office (Hamouche, 2021). Such tools could include Microsoft Team, team viewer, Microsoft Remote desktop, and Zoom. However, the author cautions against overusing such systems to the extent that they make employees uncomfortable or drive perceptions that their manager does not trust them. Hamouche (2021) indicates that policies such as those requiring employees to put their microphones and cameras on throughout the day just to ensure constant communication may be detrimental to the employment relationship.

Unplanned Staffing Challenges

Staffing has to do with recruiting and retaining competent employees to help in the realization of organizational goals (Hamouche, 2021). Crisis situations have certain repercussions on staffing. Depending on the scale of the crisis, organizations will usually experience shrinking revenues and financial challenges that may force them to lay off employees, freeze hiring, or cut down on high-skill jobs as they seek to minimize costs (Hamouche, 2021). As part of cost-cutting, organizations may lay off contractual employees and opt for more flexible employment engagements such as freelancers and subcontractors as part of cost-cutting. Hamouche (2021) indicates that all these sudden staffing changes could damage employment relationships, leading to reduced morale and increased turnover. Further, crises situations may limit the ability to attract competent employees, particularly for organizations operating in industries that are most affected by the crisis (Hamouche, 2021). Competent and skilled individuals may shun such industries during and immediately after a crisis and opt to take up opportunities in industries that are not greatly affected by the crisis.

Strategies for Addressing this Challenge

Hamouche (2021) advises managers to increase employees’ engagement and sense of belonging to minimize the effect of uncertainties brought about by staffing. First, it is important that managers develop a culture of listening to their employees to understand their concerns and grievances. Burley-Allen (2007) identifies three levels of listening that differ based on the listener’s behaviour. Level one of listening is the most effective. The listener views the speaker’s message as a source of new, useful information and strives to view things from the speaker’s perspective devoid of personal attitude and biases (Burley-Allen, 2007). Level two listening is less effective – the listener hears what the speaker says, but does not take time to understand their intent, which often leads to negative feelings, misinformed actions, and misunderstanding (Burley-Allen, 2007). The third level of listening is the least effective – the listener is more interested in speaking and they, therefore, focus on finding fault in the speaker’s message (Burley-Allen, 2007).

Based on these insights, it is important that managers practice level one listening, where they focus on understanding employees’ fears, concerns, and grievances with respect and intent to understand (Burley-Allen, 2007). Besides listening, it is advisable that managers tell their employees the truth about the situation to enable them to prepare adequately and eliminate perceptions of unfairness (Mollica, 2007). For instance, if the employees face possible salary cuts, the manager needs to tell the truth, including explaining the company’s current situation, how the decision was reached, and the possible impact of the same on the organization. At the same time, they need to demonstrate interest in the employee’s success by, for instance, informing them that the situation is likely to change if the organization can obtain alternative funding sources (Mollica, 2007). This helps provide an accurate picture of the current situation, thus building the employees’ trust and confidence in their manager.

Difficulty in Performance Management

Performance management is the identification, measurement, and development of an individual’s performance to determine how well it aligns with organizational strategic goals (Hamouche, 2021). Employees are expected to maintain good performance even in times of crisis. However, carrying out performance management in times of crisis may be challenging due to several factors. First, due to reduced revenues and attempts to minimize costs, managers may be forced to eliminate performance-based pay systems, which may limit employees’ willingness to give their best performance (Hamouche, 2021). Furthermore, the uncertainty that crisis situations bring about in terms of possible job losses, pay cuts, and changes in working conditions may lead to occupational stress, which could significantly affect employees’ performance. Additionally, changes in working conditions, such as employees working remotely, may make it difficult to assess performance in regard to attributes that a supervisor would need to observe through physical interaction.

Strategies for Addressing the Challenge

To address the challenges associated with performance management during a crisis, managers could invest in predicting and flagging technological tools (Nguyen, 2020). According to the author, these are often tied to digital timekeeping systems, CCTV systems, and point-of-sale systems and help to monitor employees’ performance. They record computer activities such as email exchanges, file downloads, and browsing history and then generate performance reports that could be used to inform decision-making on the work performance of individual employees and entire departments. They also highlight patterns of rule-breaking activity and could provide a system for reducing fraud even when employees are working remotely (Nguyen, 2020).

However, such performance monitoring would be interpreted as a lack of trust if overused (Hamouche, 2021). As such, it is equally important that managers strengthen their performance management by regularly communicating the organization’s strategic direction to employees and providing valuable feedback on performance.

Compensation Management

Compensation management covers the monetary and non-monetary rewards that an organization advances to its employees for doing their job (Hamouche, 2021). As Hamouche, (2021) observes, the compensation structure influences employee motivation, which, in turn, influences performance and retention. In times of crisis, such as the Covid19 pandemic, the government may move to offer financial support to organizations and employees as a way of encouraging them to comply with certain measures. Unfortunately, such policies may affect an organization’s compensation structure as they may be unsustainable in the long-run. For instance, during the Covid19 pandemic, the US government instituted a two-week sick leave policy for Covid19 treatment, isolation, and taking care of a relative infected with Covid19 (Hamouche, 2021). Such policies help to protect employees and ensure that they are not forced to come to work when sick (Hamouche, 2021). However, for employees who have not been entitled to such policies before, it presents a new challenge for managers to think of ways to sustain the same after the pandemic to avoid losing talented employees (Hamouche, 2021).

Another challenge that managers face is altering the compensation structure to reflect the level of risk associated with a job to attract and retain the right talent in risky jobs (Hamouche, 2021). For instance, in response to the Covid19 pandemic, organizations were forced to review upwards their compensation structures for frontline medical staff, whose jobs were associated with a high risk of infection, as a means to retain them (Hamouche, 2021). Employees are more likely to leave the organization if the risk associated with the job does not attract sufficient compensation (Hamouche et al., 2021). In times of crisis, such reviews may impose an additional financial strain on an already-struggling organization.

Strategies for Addressing the Challenge

To avoid losing talented employees due to the effect of externally-motivated policies, Hanouche (2021) advises that managers adopt intrinsic motivation strategies such as increasing employees’ autonomy. This will help maintain employees’ job satisfaction and motivation levels even after the withdrawal of external policies instituted to cushion employees and organizations during a crisis. Further, the managers could institute relevant measures to control hazards at the workplace so as to reduce the risk of exposure for employees (Hanouche, 2021). For instance, in the case of the Covid19 crisis, the manager could ensure that they provide the necessary protective gear for employees who face a high risk of exposure such as medical personnel. They could also provide free face coverings within the office and an adequate number of hand-washing points to minimize employees’ risk of exposure as a way of retaining talent.

Conclusion

This text sought to identify the challenges that managers face in managing employees during a crisis and the measures that they could take to address the situation. The topic is crucial as it prepares managers for crisis situations and provides crucial insights on how to address the challenges to retain talent and minimize costs. The text categorizes the challenges that managers face into four areas: changes in working conditions, uncertainties around staffing, difficulty in carrying out performance management, and inadequate compensation systems.