Anyone can motivate a team thats doing well. But when times are hard, how can HR keep staff spirits up? Sheridan Winn reports

Its an uncertain world. Increased competition, downsizing, mergers, plant closures, the introduction of new technology, new working practices, the economic downturn and the sudden effects of a catastrophe upheavals are common, and motivating staff through the worst is perhaps the biggest challenge of all.

The upshot for business is stress, both in the organisation and its staff. Its the biggest cause of work-related illness in the UK, with one in five workers reporting they have been affected by it. Figures by the Health and Safety Commission (HSC) in December 2002 estimate that 33 million working days in 2001/02 were lost due to illness, with nearly half attributed to stress.

If management loses its way, the workforce follows. Malaise and uncertainty spread. Where strong management and a positive outlook can galvanise people to dig themselves out of a hole often quite a big one a depressed team will only dig itself further in and lose its way. Its not overwork that causes stress its uncertainty, a sense of not knowing whats going on, says Ian Florance, independent consultant to business psychology solutions provider ASE.

Communication is the key to motivating staff in tough times, agrees organisation and development director Moira Nangle at Virgin Atlantic. Few businesses experience the kind of shock felt by Virgin Atlantic, following the events of 11 September 2001. Be honest, she emphasises. People can tolerate bad news. What they cant tolerate is the anxiety of not knowing what is going on. There were times at Virgin when we had to say, Weve not done this before, but were in it together. You have to paint a picture of the future that makes people feel it will be worthwhile to come with you. You have to show that this is a business that never takes no for an answer, that will never be beaten. Create a spirit of community. Explain that you dont want to do it, but that youve got to and youll be back on top before long.

There can be highs and lows to morale. In the first few months at Virgin there was a lot of adrenaline pumping around, says Nangle. The job was difficult, but it was in hand. Interestingly, she recalls, sickness absence virtually disappeared. Once the excitement was over, there was a low point in November 2001, when many of the leavers had gone. It really hit me when I looked out of the window and saw all the empty spaces in the car park, she says. Carrying out the redundancy programme, however, was only a part of the task. The challenge was to reinvigorate

the team.

Strong leadership is one of the most important factors in keeping teams focused and cohesive in tough times. As leader of Philipss Optical Storage division, Hein van der Zeeuws business was riding high in April 2000, reporting exceptional results. In May, however, things looked very different, as the global semiconductor industry plunged into crisis.At times like this certain things need immediate action: operational costs have to be brought down and there are painful decisions to reduce staff capacity, says van der Zeeuw, now an executive vice-president and general manager, Philips Semiconductors. The worst part is when you realise you are working harder and harder and it is not delivering the results you need. The point comes and this is sometimes missed by businesses when you have to sit down with your team and ask, What do we have to do differently? How do we change the way we do business? You find the business has changed, your customers are demanding different things from you, your business partners are changing and so are your expectations.

Positive thinking is important. Motivation is about being positive and seeing the opportunity in every situation, says Karan Bilimoria, founder and chief executive of Cobra Beer. Bilimoria started Cobra 13 years ago in the middle of a recession, with little money, competing in one of the toughest beer markets in the world. If anybody asks if I should have started Cobra Beer, when I did, the answer would be a definite No. It was against all odds, he admits.

Having begun by delivering his beer in a beaten-up Citron 2CV, Bilimorias company was rated one of Britains fastest growing companies in 1999. Today Cobra has annual

revenues of 50 million. In five of the past eight years, it showed an annual growth rate of more than 50% and has successfully launched into five US states. In true coals to Newcastle style it has also been exported and launched in India.

Gloom and doom have been prevailing since 9/11, he says. The global economy, the stock market collapse, Iraq, SARS and the slowdown in the US economy theyve all had an effect. Some companies have suffered very badly. Its a very difficult environment in which to operate. You have to bounce back. The key is to understand what you can and cannot control. You can make excuses, but there has to be an element of acceptance. Weve had to accept that Cobra cant maintain an annual sales growth of 50% its 25% this year, but compared to many companies thats still high.

Cobra has done a lot of business development and has used the time to innovate, he explains. In the past year, its expansion into South Africa, the US and India resulted in a 50% increase in recruitment to staff its new offices.

Constant innovation creates excitement, Bilimoria says, but if you are surrounded by gloom it will have the opposite effect. Enthusiasm spreads, but the downward spiral into gloom can be just as infectious.

For morale to stay high, recognition is a must. Its a key factor that often gets overlooked in tough times, says Sally-Ann Huson, knowledge and intellectual property director, at people development consultancy TMI. Many people think motivation is just a matter of reward, she adds. Its not its about recognition. Motivational theory research shows that money satisfies only to a certain extent. After that people look for meaning in their lives even in tough times.

Gary Miles, assistant director at Roffey Park, takes a similar view. Money is a great short-term motivator, but it doesnt necessarily lead to long-term success, he says. One of the things to come out of the current climate is that people want to make a contribution. They ask themselves, What am I doing here? Is it worth it? Is there value here?

He believes the key factors to motivation are empowerment and achieving a good work-life balance. The biggest weak point with management is communication, he warns. Whether you are motivated or not, he adds, may well depend on the leadership you get from your line manager, and how well they communicate with you. Its not about sending emails around. Its about good face-to-face communication. Thats where you win hearts and minds. It sends a very positive message.

One of the first things that companies in trouble often do is cancel things like the Christmas party. Its almost the opposite of what they should do, says Florance. Belts may have to be tightened, but the thing to say is, We want to hold it but we want to do it differently. Well give you responsibility to create something that is more fun like a pantomime. You organise it not the HR department. This draws the whole team together, which lifts morale, he explains. Its also good to do things that have meaning, such as something charitable like Red Nose Day. Such events out of all proportion to what they are make people feel, This is a good company. I really want it to succeed.

Staff also need reassurance to keep them motivated in times of uncertainty. The classic scenario where people become demotivated is when they are not trusted, or they are criticised and undermined in front of their peers, says Huson. It can damage a persons sense of self-belief and leave them with little sense of belonging. The positive effect of reassurance cannot be overestimated.

Setting achievable goals is another aspect of keeping staff motivated. People get a feeling of satisfaction when they achieve something, says Florance, even if its just planning. The danger is that when things get tricky goals become very general. People start to think they must work 18 hours a day, he adds. The answer is to break tasks down into manageable projects with very specific targets, he believes. And asking people to take responsibility for specific projects boosts confidence as the workforce realises you are actually doing something: in these situations very often staff feel nothing is being done. This indicates you are doing something specific. Even planning to achieve gives people a buzz, he adds.

Miles is clear about the role of HR in tough times. The board may believe it is a people issue that HR should sort out but its not, he says, its part of everyones role in the senior team. I believe part of HRs role is to challenge managers to remember why theyre managers.

HR also needs to be aware of the tell-tale signs of stress, says Rob Dominic, a business psychologist and consultant at OPP. Stress and loss of motivation is likely to lead to survival behaviour, he points out. There are often instances of indecisiveness and not wanting to make waves when redundancies are brewing. Once people have left, the remaining staff may become risk-averse, because they are coping with heavier workloads and a high degree of uncertainty. Be aware of behaviours such as a manager saying hes unable to pencil in a meeting with you for two months, he adds.

A key HR role for Virgins HR department was to provide a safety net for managers who might buckle under the strain. Nangle had a wall chart providing a detailed timetable of what every manager was doing, and where they were. Each day, every manager was either called or visited.

But however wearing they are, tough times can also be exciting. Virgins mind-set, says Nangle, was to say, Theres no way this business will be beaten. When it was all over, some people thought it wasnt nearly so much fun wed all gone back to talking about the coffee machines.