WORKPLACE: Employment Issues Of The New War

Only a few months ago, HR professionals and business owners were fighting the talent war; desperate for quality workers or, in some cases, any workers. By mid-summer, turnover was slowing and blue-collar workers were joining the ranks of the unemployed M.B.A.-graduate dot-com workers.

And then, out of nowhere, came Sept. 11. Enter confusion, fear and uncertainty.

Welcome to the “New War” in the workplace. Almost overnight, the focus of CEOs, business owners and management has changed. Depending on where your business is located, you could be dealing with in-house post-trauma counseling, ethnic or religious harassment, or, perhaps the most difficult — employees who tragically lost their lives. All of this, combined with declining revenues and anxious customers, has resulted in business challenges that few could have anticipated.

What does all this mean for the short- and long-term future? Ask any economist or labor expert and you’ll get a different answer. Why? Because our present circumstances don’t fit current business models and, what’s more, there aren’t any historical patterns or perspectives to draw from. We are in the midst of a true paradigm shift in business and, this time, we’re on our own.

It has been said that the best defense is a good offense. If this is true, perhaps the most prudent advice is to focus on and manage what we do know and understand, while capitalizing on our strengths. Remember, you’re not alone. The vast majority of companies are in the boardroom rethinking policies, procedures, people, strategies and revenue projections. If you are facing these challenging realities and wondering how to respond, consider the following:

Reality: Anxious customers
Response: Don’t reinvent yourself or your business. This is not a time to risk confusing consumers. Proceed with caution on any price increases.

Reality: Rising unemployment
Response: Be more selective in your hiring. Hire only productive employees who believe in your mission, philosophy and values. Enhance your hiring process to better screen potential employees.

Reality: Revenue slow-down
Response: Get creative to get more business in. Roll up your sleeves and dig in a little harder. Preserve cash. Don’t overstock supplies. Cut expenses and fat. Stay focused and positive. If you’ve worked hard to brand your business “an employer of choice,” it is important to maintain your reputation in the labor market. Consider alternatives to layoffs such as reduced workweeks, required vacations, additional time off without pay, suspended benefits, bonuses or pay. If you must lay off employees, seek advice to plan the approach and reduce liability.

Reality: Lost trust in people
Response: Consider background checks on all new hires. Include criminal, social security, motor vehicle and credit reports.

Reality: Concern about hiring only authorized workers
Response: Revisit your INS I-9 forms and procedures. The federal Immigration and Control Act requires that all new hires complete an I-9 form and submit valid documents that establish their identity and work eligibility. Do not hire anyone with suspicious documents. Review I-9 forms for current employees and ensure that everyone has valid documents.

Reality: Employees called up for duty
Response: Make certain that your Military Service Leave policy is current. Grant the leave to service members, reservists and National Guard members and be prepared to reinstate the employee if he or she returns within five years. Offer COBRA.

Reality: Heightened fear in the workplace and the need for security changes
Response: Conduct an analysis of business functions and operating systems. Identify vulnerabilities and determine how to minimize risk. Consider security cameras, security guards, enhanced computer backup procedures and updated evacuation and emergency plans. Review all security plans and procedures with employees, designate someone to get official information and make it available in the event of another crisis. Determine and communicate which management officials will be responsible for making decisions about shutdowns, early departures and absences. Establish procedures to follow in the event of a shutdown.

Reality: Employees who are afraid to fly
Response: If possible, arrange teleconference or videoconference meetings, or suspend travel for a limited time while employees regain confidence.

Reality: Potential harassment, discrimination, or violence based on national origin or religion
Response: Redistribute up-to-date policies stating your commitment to a workplace free of violence, illegal discrimination and harassment. Retrain managers to recognize and prevent bias and immediately investigate any allegations of violations. Allow employees to express patriotism, but ensure they do not offend anyone with racial epithets or name-calling.

Reality: Plans for an IPO, a merger, an acquisition, or a joint venture
Response: Proceed with caution. Consider structuring the deal in cash rather than volatile stock.

Reality: Distracted employees
Response: Cut them some slack for a time. Then, it’s best (for them and for the business) to get them refocused and productive again. Seek professional advice if an employee is dealing with current or delayed shock. Think twice before redefining policies or practices. It may be best to put large-scale changes on hold.

Reality: More employee use of e-mail and the Internet
Response: Be patient. You may want to consider temporarily relaxing policies to allow for more personal use of company computer systems. Exercise caution when allowing employees to download photographs — they take up a huge amount of space and can raise questions about copyright liabilities if they are stored on company computers.

Reality: Employees rethinking their priorities
Response: Help employees to feel that it means something to belong to the company. Managed properly, this shift can foster teamwork and loyalty. Employees may be less willing to devote long hours at work. Offer more recognition of family and consider telecommuting or more personal time.

Reality: Changes to employment regulations, benefits and tax laws
Response: Employers should expect to see a number of changes as a result of the recent disaster. Some of these may be related to taxes (possible cuts along with expanded payment deadlines), health and welfare insurance, investment programs, unemployment benefits (possible increase for claimants and higher tax rates for employers), discrimination rules (more enforcement and possible reconsideration of the ruling that allows illegal immigrants to file Title VII lawsuits and receive unemployment), immigration regulations (tougher enforcement and increased investigation of I-9s) and others.

Stay in close touch with your adviser, consultant, or other professional to keep you abreast of any changes that may impact your business.

CONCLUSION. Yes, most of us are back to business by now. But we are far from back to normal. I recall that as we approached the new millennium, I advocated that leaders were going to need the very best in terms of wisdom, good judgment, creativity and guts. Today, it seems, we could all use a double dose of each.

As I reflect on the past two months and the aftermath of Sept. 11, I am most struck by the stories of co-workers, friends and employees who risked their lives to help each other. Their heroic efforts have redefined “workplace loyalty.”

The HR gurus had it right all along — the greatest assets a company has truly are its people.

The author is president of the Winter Park, Fla., consulting firm, Seawright & Associates, Inc. She can be reached at 407/645-2433 or jseawright@pctonline.com.