Raleigh, N.C. – Capital Associated Industries, Inc., (CAI), the largest employers’ association in the state, says the increase in the unemployment rate is due largely to open positions going unfilled.  Whether an employee has left the workplace or a newly budgeted position is not filled, more employers are saving money this way than by actual layoffs. If economic problems continue, companies may be reluctant to fill these roles until positive trends are clear.

The uncertainty in the economy is a danger for any company.  When employees feel unsure about the fiscal well-being of their company, they can become less engaged and even look for alternatives with growing organizations. 

Bruce Clarke, CEO of CAI, lists five ways employers can keep employee morale up when the economy is down:

1) Communicate clearly.
Employees need to understand the plan when it comes to unfilled positions in the company.  Will the role be filled in the future?  Is this a permanent change in responsibilities?  If so, what are the new priorities if the work day is full?

2) Be honest and open.
Employees who understand the reasons for the decision to layoff or leave positions open are much more likely to help get the extra work done.  Be honest about the causes and the potential cures and update employees on a regular basis.

3) Set up improvement teams.
Set up cross-functional and specific rapid improvement teams to focus on a single process or opportunity. Implement measurable, quick impact solutions and celebrate victories in a meaningful way.

4) Analyze your data and talk with employees.
Employers may find that production and service actually improve with limited reductions and selected open slots.  Analyze your data and talk with employees about why and how that happened.  Use this as an opportunity to make some structural and operational changes to benefit the workplace with better processes and strongly committed employees.

5) Find creative ways to have fun.
Find creative ways to have fun and recognize the disruption and personal sacrifice that reductions and open slots cause for others. 

Bruce Clarke is president and CEO of CAI and has worked in the human resources field for over twenty years helping employers create exceptional workplaces through management advice. Clarke has served as chair of the Labor and Employment Law Section of the North Carolina Bar Association and is listed in The Best Lawyers in America.

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About CAI, Inc.
CAI is a non-profit employers’ association founded in 1963 and serves the greater Research
Triangle, Piedmont Triad, and 65 central and eastern counties in North Carolina. With offices in
Raleigh and Greensboro, CAI provides over 1,000 member companies with management information, day-to-day telephone guidance, and training and human resources services. To learn more about CAI, visit: http://www.capital.org

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