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Home / Business / Economy / Employment

Insecurity challenge for managers

By Steve Hart
NZ Herald·
28 Oct, 2011 04:30 PM5 mins to read

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Leaders need to instil a sense of confidence throughout their companies. Picture / Getty Images

Leaders need to instil a sense of confidence throughout their companies. Picture / Getty Images

People are feeling insecure in their jobs, optimism about the future is low and staff are more distracted than two years ago - it's time for managers to lead from the front.

These are some of the results of a global workplace survey carried out by international change management firm RogenSi. Its Global Mindset index survey shows that people are struggling to stay positive and focus on what they should be doing.

Distractions include uncertainty about the future, turbulence in the global economies and memories of last year's financial chaos.

Clark Perry, director of RogenSi, says employers need to re-engage with their staff.

While the survey shows some upsides compared with a similar survey by the company last year, Perry says some of its results are "alarming".

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"Sustainable success that delivers results regardless of market conditions needs to be generated from within. In 2011, it appears this is far from the case," says Perry in the 30-page report.

Although Perry says people's level of passion at work has risen during the past 12 months, it has still not returned to the "heady days" of 2009.

"That said, compared with previous years, workers feel more equipped to tackle the challenges ahead and have a higher level of focus than this time last year.

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"However, there are disturbing trends in the index's responses that have the capacity to undermine performance and negatively impact business potential across the world."

Of concern, says Perry, is the revelation that leaders of organisations throughout the world are failing to clearly communicate their vision, strategy and values.

The survey indicates that workers are confused and uncertain about where their organisations are heading and, rather than being innovative in their roles, staff are playing it safe.

"Their uncertainty about their future at work, coupled with a lack of optimism about what lies ahead, helps to shatter once and for all the perception of [New Zealand's] isolation from negative impacts brought about by the crisis," says Perry.

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"Worryingly, the 2011 survey has found that workers' emotions are being influenced by external events, rather than by internal control.

"This is a mindset challenge that requires urgent remedy."

According to the index, of those who took part in the survey, 92 per cent of employees' emotions are controlled by the results they achieve - rather than what they find from within to deliver success and exceptional performance.

In this climate of volatility, says Perry, it is critical to understand that emotions impact on our overall drive to perform. "The engine room of the majority of economies across the world, small businesses (fewer than 100 employees), have found the going tough during the past year.

"Compared with their bigger multinational counterparts, small business leaders and employees anticipate a tough road ahead as they work hard to recover and regain strength into 2012.

"It is therefore vital that leaders of these organisations are clear about their direction for the future (vision and strategy), while being certain about their organisations' value proposition within the marketplace."

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Perry says management has to connect with every employee. "Small business should also embrace and tap into the strength that comes from being an organisation of their size - successful small businesses know their niche, connect to their people and clients and have a nimble ability to adjust to a changing market."

Overall, the survey appears to show that people, even those in countries such as New Zealand that have not directly been affected by the global economic meltdown, are worried about the future of their careers and are either working at companies with shaky foundations, or perceive this to be the case.

The RogenSi report says a high degree of the world's current condition is being fuelled by fear and exuberance, which are, in the main, irrational. Among the things senior managers should be doing, says the survey, is to provide a sense of balance to the turbulence.

"It is essential for leaders to help their employees know what matters most (what to focus on to deliver exceptional performance and long-term positive results)," the survey says in its recommendations.

"Leaders need to instil greater confidence in their abilities across the workforce, exhibiting certainty in decision and policy-making and living such behaviours on a daily basis."

Optimism in the workplace has increased slightly from a score of 5.5 in 2009 (out of 8) to 5.88 in 2011.

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However, this score equates to only 12 per cent - or one in nine - of the global workforce feeling optimistic in the face of negatives.

The Global Mindset Index survey features the responses of 1200 people throughout the world, of which 170 were in New Zealand.

Tough times for women too
Women are finding the turbulent economic environment more challenging than their male counterparts in terms of feeling confident in their roles and responding to stressful situations in the workplace.

Globally, the workforce is 6.29 per cent less confident in 2011, with a score of 5.56 (out of 8), compared to a score of 6 in 2009. Women are the biggest contributors to this fall, as they have reported feeling 6 per cent less confident than males, scoring 5.32 and 5.77 respectively.

In 2011, women are less cool-headed in the workplace, scoring 5.50 compared with 5.84 for males, a 4.86 per cent mindset difference.

In 2011, women also feel less empowered by their leaders to do their job than males do. Females scored 5.65, 4 per cent lower than men, who posted 5.98.

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Despite this, women feel their organisations are living up to their values more than males. The females' score of 5.06 is almost 5 per cent (4.86 per cent) higher than men, at 4.72.

Women have greater belief in their organisation's strategy and rate their organisation's prospects higher than their male counterparts.

Source / Global Mindset Index 2011

Steve Hart is a freelance journalist. SteveHart.co.nz

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