By the time this gets to you, much will have changed, but the one thing that will not change is our shared sense of connectedness regardless of the struggles and shared distancing we are collectively forced to experience. For that reason, let us focus on what we know we have in common and work to learn with one another in trying times. Employee ownership companies have dealt with crises before, whether the recessions of the last 40 years or difficult times with individual companies. We know from extensive research that ESOP companies survive recessions much better and recover from them much faster, both because of their cultures but also because their competitive landscape may be reduced by the time things improve. These companies have tended to follow some common practices.
Employee-owned companies are known for their transparency with employees, especially on topics that concern their business financials and decision making. Right now, companies should lean in on such practices and focus on how to best inform their employees on matters that concern the difficult realities we collectively face. One of our deepest sources of anxiety can be a lack of information or being faced with persistent confusion.
In times like these, it makes sense, for instance, to have a weekly CEO message to the employee owners about financial issues, business developments, strategies being pursued, etc. Focus on a few key corporate numbers regularly, but also consider having a number of the week to talk about. The reality you are facing may not be pretty, but knowing the numbers is less anxiety provoking than guessing.
Whether people are working remotely, at your business, or are on temporary leave, provide an easy way to get questions answered. This usually will be a FAQ on your web site everyone can see.
Many, maybe most, businesses are going to need to cut costs. Send out a survey to all employees asking them to identify things that can be cut. No idea is too small. Share the results with everyone and send the survey out again to see if it stimulates other ideas. If you can have live meetings, you can list some of the better ones and see if there is discussion.
You might also consider asking people how they want to handle a need to cut labor costs. Some companies facing tough choices, for instance, have asked if anyone would want to volunteer to take unpaid leave. Some people want to do this for various reasons. You can also ask if employees would be willing to take an x% pay cut across the board if it meant that there would be fewer layoffs, or if people would prefer to go on a three- or four-day week across the board. You may also consider providing low wage employees with further protection by making the percentage of their pay cut smaller than employees we more significant annual income at the company. Be clear that in the end, management will have to decide what is best for the company, but will seriously consider any input.
Many ESOP companies have ideas teams—if you don’t, you need one. These teams of employees from
around the company meet to figure out ways to generate, vet, and implement ideas from employees at all levels.
In normal times, they might meet every few weeks or so. But these are not normal times. Now is the time to make sure there are structured opportunities for employees at all levels to get together in small groups on a regular basis to identify problems and solutions. Chart the ideas and share progress. No issue is too small, but the teams should also be thinking of whether there are any new business opportunities that might be pursued.
The process should generate useful information, but it also is a way for people to feel more control in these very difficult times. Another article in this issue looks at how an annual meeting can help do the same thing.
Even in situations where employees are forced to work remotely for a time, prioritize human connection in any way possible by leveraging the technological resources available to us. The more we engage each other, the more we are given opportunities to support and empathize with one another. If anything, distance and struggle to communicate should be a catalyst for methods that improve how we practice such things generally. The more people can feel they are in this together, the easier it will be for people to cope. Your company can be an important part of keeping people mentally healthy in what for many is the most difficult period they have experienced.
For the past several years, one of the most important exercises shared at our events and meetings is the sharing of our own stories in the most trying of times, through failures, through mistakes, and through disaster. Share your story with us and we will share it with others. Let us use this moment as an opportunity for collective learning and empathy with one another. As a community, it is our collective duty to share stories and solutions based in hope and perseverance.