Recession, Employee discontent and economic recovery.

Debate has started everywhere in the world so as to whether or not the green shots of economic recovery are real, whether they are sustainable and how soon the recession would over. I am not sure, if the employee discontent and low motivation level of employees have been discussed in equal eager. I am also not sure, if high employee discontent has been recognized as the issue we need to handle.

There are two hard facts; first the employee discontent across the globe, across industry is so high that this level of discontent was not experienced in last quarter of century or so. Second, today’s corporate leaders, who have been developed their careers during the last twenty-five years or so, have little or no direct experience in handling serious employee discontent. This would, in my opinion, create a larger management issue when economic recovery starts to roll.

For example, Arcelor Mittal curtailed its European steel production by half in view of the market conditions. During the annual share holder’s meeting in May this year at company headquarters, 100 odd works attacked the company headquarters. Police has to be called to control the mob. This is in spite the fact that Arcelor Mittal had not taken any major lay-offs. Also in March this year, Sony France workers took hostile of its plant CEO and kept him overnight in the factory.

There are so many examples of recent past, in India and even in rest of the world, where employee discontent has out broken. I personally feel, recent Australian out broke on Indian students and workers are the example of that as well.

Assuming that employee discontent might spoil the economic recovery; thing we need to think about it is what corporate leaders can do about it?

The solution is tantalizingly simple, but requires a huge mindset change. Start treating people like people again.

With rise of software industry, the culture of labor union has reduced, thus labor issues have been reduced from corporate leaders agenda. (I am not arguing to form a labor union here, but trying to point out the shift in the scene and priorities. Though HR regained the importance like never before with software industry). Also, more line managers should realize that HR is the job of line managers and not the HR department alone, have personal connection with your team, understand the pains he/she is going through, and have personal touch to all your answers and solutions.

And every manager should begin this right now!