Employees Lack of Trust for Management

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					                       The Employee Ownership Foundation
                       An Affiliate of the ESOP Association
                            Employee Owner Retreat
                                Downers Grove, IL
                               August 13 – 15, 2009



PROBLEM: We have a lack of involvement, understanding, and enthusiasm…

    1. Lack of knowledge of ESOP
    1. Lack of information available regarding ESOP
    2. Management not involved
    2. Unsupportive of committees
    3. Attitude problem – negativity from long-term employees
    4. Trust issues about ESOP – fear that it will not be there upon retiring
    5. Involvement within committee

  Top 3 Causes:

     A - Lack of knowledge
     B - Management not involved
     C - Trust issues

    Solutions to A [Lack of knowledge]:
    1. Education
           Making learning process fun
           a. Games
           b. Contests and cool prizes
           c. Company events and family events

     Solutions to B [Management not involved]:
     1. ESOP committee meeting and invite manager
     2. Do ESOP education during management retreats

     Solutions to C [Trust issues]:
     1. Introducing “this is yours” mentality

   2. Showing numbers to employees to ease fears that company is doing bad…when
      it is doing good.
   3. Show how long term ESOP companies are doing (usually well); networking
      with ESOP groups.

  A. Education
         1. ESOP newsletter – monthly (start 9/15)
                i. include games and contests
               ii. include financial information
              iii. tidbits and ESOP facts
              iv. information about individual employee-owner

   B. Management (next meeting 9/15)
          1. Invite them to committee meetings

   C. Trust Issues
           1. Use the word “your-yours” (starts at HR Dept.) when speaking to
               employees about their company (immediately)
           2. Show employees that other ESOP companies are doing well and
               thriving (ESOP newsletter article – 9/15)


PROBLEM: Support of Management

   Unnecessary to meet
   Too large of a region to reach all employee owners
          -Relaying information to the field
          -Morale is down
   Lack of education to management
   Lack of fresh ideas from ESOP Committee

   Solutions – Brainstorming
          Invite supervisors to meeting, make goal for meeting and achieve
          Cross training when ESOP member is out at meeting
          Show statements to co-owners, morale booster
          Committee members to field to relay information (and corporate)
          Re-educate management

 Solutions to Top 3 causes:
        A. Lack of fresh ideas from ESOP committee
               Meet more frequently for less time (telephone/face-to-face)
               Follow through with ideas – give completion date

        B. Too large of region to reach all employees (owners)
              ESOP committee/corporate to field
              Divisional committee member on ESOP
        C. Unnecessary to meet
              Invite supervisors to meeting
              Provide meeting minutes to supervisors

      A. Lack of fresh ideas from ESOP Committee
            Take to ESOP committee meeting and vote
             Minutes from meeting out to committee prior to next meeting
            Schedule next 3 meetings in advance

        B. Regional
               Lead field guy (division) on the ESOP committee
               Bring up to ESOP committee at next meeting

        C. Unnecessary to meet
               ESOP committee, recording secretary, email minutes to all supervisors.
               Showing timeline (deadlines) for accountability.
               Open up conversation with supervisor based on minutes.


PROBLEM: Ongoing education for long-term employees

    A culture that promises education for corporate to manufacturing
    Lack of educational meetings
    Priorities in ESOP and ESOP culture

    Priorities in ESOP – why?
         1. (Business culture) appreciation of all employees
         2. Company involvement (parties and employee appreciation is good but only
         employees are involved)
         3. Types of meetings – just get-togethers vs. true employee involvement and
         4. 54% employee-owned vs. 100%
         5. Number of employees in company (know everybody in building, why not
         more involvement)
         6. Lack of dedication
    *It’s the business/ESOP culture

       A. Keeping ESOP in front of employee
          a. ESOP sticker in paycheck
          b. Play ESOP game
          c. Employees invent games

         B. Reward program/ESOP involved
            a. Safety
            b. On time shipment
            c. QC

         C. More meetings/to help people to understand
            a. Bring person not involved in ESOP

     Reward program re ESOP information

  Who – ESOP committee

  What – Gas cards, reward for employee participation/appreciation

  When – Monthly

  Where – ESOP meetings



Problem Identification
            -Let people know you’re not giving anything up to get your ESOP

             -Culture – not understanding language barriers, no effort
             -Diversity – lack of leadership (support)
             -Lack of knowledge given to lower levels

New Statement of Problem

Company leaders provide education and diversity training to all of us


   1.   Survey members on what they don’t understand
   2.   Form ESOP committee
   3.   Everyone gets ESOP journal
   4.   Peer-to-Peer education
   5.   Company-to-Company education
   6.   Develop Miguel Trejo’s of Scot Forge mentality (ownership)


   1. ESOP committee is giving every new employee a journal and mentor
   2. Develop stategy and timeline
         1. ESOP committee forms
         2. For 1 year mentor new employees
         3. Where? Information sharing at each profit center and one annual whole
             company gathering
         4. How? ESOP newsletter/email blasts emailing questions and answers from
             individual journals to everyone


Problem: Lack of Communication

       A.     Language barriers
       B.     Nobody to communicate (3)
       C.     Not comfortable approaching management
       D.     Hearing different messages at different locations/shifts (2)
       E.     Too many communicators/ not organized
       F.     Lack of education/understanding of ESOP (1)
       G.     How is ESOP communicated to employees
       H.     No one knows who is on ESOP committee
       I.     No specific location to view communications
       J.     Committee has to be enthusiastic
       K.     No feedback from employees
       L.     Apathy – employees don’t care – “buy in” (4)
       M.     Lack of communication between employees
       N.     Lack of teamwork

SOLUTIONS for Top 2 Causes:

  1. Lack of Education/Understanding of ESOP

         A.   ESOP games for employees (3)
         B.   Powerpoint presentations at quarterly meetings
         C.   Annual meetings for all employees/Board members (2)
         D.   Rotate committee members to keep ideas fresh and have representation
              (shifts/locations) on committee – 3-4 year limits, rotate 1-2 new members
              each year (1)
         E.   Monthly updates of bulletin board
         F.   Monthly newsletter
         G.   Send employees to ESOP retreats/conferences
         H.   Ask employees for ideas (questionnaire) regarding ESOP
         I.   Have local politicians visit locations
         J.   Get involved with other ESOP companies

  2. Hearing Different Messages at Different locations/Shifts

         A.   Put message in writing
         B.   Post message in central location
         C.   Have translators at meetings
         D.   Have meetings at central location
         E.   Rotate meeting times to cover all shifts
         F.   Offer E.S.L. [English as a Second Language] classes


Problem: New Employees Do Not Know Basic ESOP Education

  CAUSES – Brainstorming

       A. Transferring to an ESOP company/ Company bought out by an ESOP
       B. Lack of interest due to 1 year waiting period (2)
       C. No consistent communication material
       D. Complicated concept/ESOP terminology (2)
       E. Language and culture
       F. No introduction program (1)
       G. Lack of multiple resources
       H. ESOP team lack of time and resources
       I. ESOP team not doing education

  SOLUTIONS to Top 3 Causes:

   1. No Introduction Program
      Help newbie’s understand ESOP. Basic information at time of interview
      Create an introduction program for new employees
         Begin Day One
      Create ongoing ESOP information
         At 90 days and ongoing
         One-on-One meeting with ESOP expert
      Lunch with President or committee representative once employee becomes
      Packet of introduction materials in multiple languages
      Bilingual representative
      History of ESOP

   2. Complicated Concepts and ESOP Terminology
      Create an ESOP dictionary
      How to make your ESOP grow
      Tips and suggestions on how your department can help ESOP
      Terminology games

   3. Lack of Interest for 1 Year Waiting Period
      Make it special at 1 year period so those in waiting period have something to look
            forward to.
      Give new hires after 1 year free logo stuff
      Newsletter showing new members
      Monthly luncheons promoting ESOP

   Invite former employees to come and speak to new hires about the benefits of the
   Include all employees in events
   Business card with employee owner (all employees)
   Gifts at different intervals – 1 year, 5 years, 10 years, etc.


1. HR and ESOP committee develop introduction program
   Day 1 – basic information at interview
   Day 2 – Meet with company ESOP expert

2. Complicated Concepts
   ESOP committee and ESOP expert

3. Lack of Interest
   ESOP committee, former employee, and company president


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