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January 2010 | dlpmagazine.com
Competitive Edge: Employee Management

Staying up in a down economy

A tough economy calls for tough decisions to keep the business profitable.

by Tina Chemini

Photo: Adam Gaultw/Getty Images

Management is difficult enough without  having to manage in a down economy. We are concerned about our businesses, the welfare of our employees, as well as our own welfare as we wait for things to turn around. The experts tell us the upturn is coming, but I doubt that you, like me, have seen many positive economic signs.

I was told recently that economic trends hit the dental industry about six months after they hit other industries, so it looks like we may have a ways to go. Think about the points below as you continue to manage through our current economic downturn.

Managing layoffs

As hard as we may try to hold on to every employee, sometimes that is not a financially responsible reality. A business slowdown may provide the ideal opportunity to re-evaluate your staff and let go of an employee or two who have questionable work ethics and are causing employee morale problems.

Bad morale is often caused by incompetence allowed to exist in the organization. If left unattended, employees who are meeting or exceeding standards perceive a lack of fairness or of unequal treatment.

In this economy, there can be no “sacred cows”—everyone needs to work hard to keep the business financially stable. Getting rid of employees who are not pulling their weight will help improve not only the morale of the remaining employees but the products and services you offer.

Employees with poor attitudes also should be considered as the second tier of expendable personnel. Occasionally, I find we at National Dentex have great technicians, but some possess poor attitudes. It may be the employee who never volunteers for overtime, starts rumors, is always five minutes late in the morning or doesn’t get along with others. Don’t kid yourself, we all have one!

Communicate the truth

Be as candid as possible with everyone in your business. Let employees know how the business is performing against its goals and targets. One of our managers told me, “Trust is everything, and a great way to lose that is to try to hide something.” If sales are down and job cuts need to be made, communicate this with the employees. When employee cuts come, at least they won’t be surprised. One of our locations even asked if any employees would volunteer to be laid off, and amazingly, received a few. Be truthful to those left behind about what their new reality looks like, whether that means a reorganization, a new manager, longer hours, or different work.

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