One of the essay questions we ask to generate qualitative feedback as part of our Top Small Workplaces application is:
Identify a specific critical challenge your organization has faced in the last five years. How did you address the challenge? Were employees engaged in the solution? How did the solution affect the organization’s success?
The answers we receive to this question not only help separate the good small firms from the truly great ones that go further in the recognition project, but they also provide a meaty list of real world-tested employee engagement best practices that are highly actionable for other businesses that find themselves in similar situations.
I wanted to take this opportunity to share with you three short case studies from the 2008 applicant pool's answer to this question that address a specific challenge, the company's solution, and the subsequent longer-term results that emerged from it.
Case Study #1
Company Profile: Regional trucking company from Illinois, 85 employees
Challenge: Lost their #1 customer in 2002 due to competitor rates. Resulting fewer shipments forced layoffs for first time in company's 37-year history.
Solution:
- Negotiated a 10% pay reduction with Teamsters
- Frank disclosure with employees resulted in decision for all employees, from CEO on down, to take a 10% pay cut for 3 months
- Refined budget and reviewed debt ratios
- Continued to focus on delivering highest quality to customers
Results:
- Customer returned in 2003
- In 2006, employees still with company received lump sum payment of the earnings they forfeited in 2002
Case Study #2
Company Profile: Innovation consulting firm from California, 48 employees
Challenge: After 9/11 and Enron crash, consultant market was poor. Possibility of first-ever round of layoffs loomed.
Solution:
- Engaged employees, some of whom offered to become contractors to cut costs
- Founders decided to forgo salaries for 6 months to ensure all hires received paychecks until business picked up
Results:
- Earned new business and salaries were restored; no layoffs
- 2007 revenues 8x greater than those in 2002
- Employees saw commitment leadership made to them during hard times, which fuels their growth today
Case Study #3
Company Profile: Designer and manufacturer of site furniture from Michigan, 194 employees
Challenge: Rising material prices cut into profit margins in 2004, to the tune of around $1 million. Had to raise prices.
Solution:
- Discussions with suppliers resulted in solutions that would "share the short term pain, with a view to the long term" including sourcing some parts in China
- Turned to employees to enact lean initiatives to improve operating efficiency
Results:
- Higher level of employee engagement cultivated
- Achieved 2005 profit goal; record growth and profitability in 2006 and 2007
What can these case studies teach us, beyond the actions these small businesses took? To me the following themes stand out:
- Frank and honest communication with employees
- Long-term focus in solutions – not just a quick fix
- There are solutions to be found regardless of industry, company size, or geographic location
How would you answer the question above in terms of your own business?
