Problem Solver

>>My employees are angry because I can give only minor raises this year, but they know profits are down. What can I do to defuse the situation?

Raises depend on two things, says business coach Renée Kennedy Edwards. One is the employee’s productivity and performance, and the other is the company’s performance. But it cannot be assumed that employees understand how they fit into the company’s overall picture. They may have tunnel vision, seeing only how things affect them, according to Edwards, president of Coaching 4 Success in Bonita Springs.

It is imperative that the employer communicates to the employee the big-picture view of the company. It must be explained that business is the priority; if it is down, the employee may not even have a job. But don’t overdo the you-should-be-grateful-to-have-a-job part of it, Edwards says. She also advises keeping the work environment positive to help offset negative economic news in the media.

Ongoing customer-service and product-knowledge training for employees also is important. As a result, they will feel better about themselves and their value to the company, and therefore more secure in their job.

Another way to boost office morale is to show employee appreciation in ways other than raises and bonuses. Edwards suggests implementing an employee-of-the-month program, awarding gift cards or a dinner certificates, or simply holding a company barbecue to reward "a job well done."