What Does Your Employee Retention Program Look Like After These Hard Economic Times?

The economy has taken a large toll on employee reward programs in almost every industry.  As I travel the nation I receive many comments from front-line employees within the apartment industry expressing their disappointment in their present employers focus on recognition programs.  Most of these employees actually state that their companies no longer care about them.  This is TERRIFYING to me!

One of my favorite shows on television is "Undercover Boss" on CBS.  These exceptionally successful CEO's of big companies leave behind their posh homes, fancy sport cars and high-rise offices to go work undercover in the field of the very company they lead, for an entire week.  Each day they work on the front-line in a different position under the supervision and direction of an employee presently holding the position.  This managing employee has no idea they are directing the CEO of their company.  More times than not, at the end of the day the managing employee informs the undercover CEO that they did not pass the test and will not be chosen for the position.  Most of the time, the CEO agrees 100% and leaves embarrassed and horrified at the expectations they and their corporate colleagues have placed on the front-line employees.

Having now watched multiple episodes, I have realized that there tends to be a repeating trend of historical decisions that each CEO recognizes and acts on to remediate.

1. Wage Freezes
   Due to the economy many companies put freezes or major restrictions on employee raises.  Gas, food and utility costs continue to soar, but their wages remain the same.  Most of these employees have had to work much harder and with less support in order to meet corporate expectations, yet with no additional financial reward for motivation.
2. Hiring Freezes
   Due to the economy hiring was often halted, leaving positions empty but adding those position responsibilities to existing employee workloads.  Those employees soon realizing that the quality of their work decreases and their ability to meet deadlines diminishes, causing a demotivating environment due to their weakened achievement level.
3. Cancellation of Employee Programs
   Due to the economy many companies removed programs such as national conferences, supplemental education programming and employee outings.  This ultimately creating an isolated atmosphere absent of colleague networking and motivation.

The above three items are strategies that I personally have observed used in our industry over the past few economically challenged years.  The mistake that each CEO consistently realizes in the television program is, they are unaware of how well informed their employees are.  There employees accept the hiring freeze, but fume over the email blast welcoming the two new Vice Presidents to the corporate office.  They accept the wage freeze, but feel robbed when they read their REIT's CEO wage increase in the Wall Street Journal. They accept the cancellation of employee programs and outings, but are devastated to see pictures of corporate employees at the corporate office annual bowling party on Facebook.

It is time that Corporate Officers trim their own fat and the fat in departments at the top. It is time for them to  realize they are feeding off of the efforts of the skinny, tired and motivationally deprived in the field.  Corporate officers of the company need to switch from staying at the Hyatt and settle in at the Hilton Express.  Corporate officers need to switch from renting their luxury full size auto and get comfortable in a compact.  Corporate officers need to temporarily stop inspecting the assets and start inspecting the front-line employees for deferred pay and motivation issues.  Front-line employees are what make our companies successful.  WE MUST TAKE CARE OF THEM FIRST, for they are truly our GREATEST INVESTMENT!  It is imperative that we find a way to give them an acceptable raise, to provide them with the staff they need in order to run an asset successfully and reward programs that recognize their outstanding efforts providing them with a source of motivation.

The economy is rebounding, and so must we.  Make it a goal to figure out a way to recognize the individuals who pulled us through these tough times, your front-line employees.