2.2.5. Job security
While it is unlikely that an employer can guarantee
permanent employment, firms should provide
enough security that employees feel safe taking risks
for the sake of innovation. Removing fears of job loss
allows individuals to take on the additional risks
required in improving efficiency, and especially with
innovative pursuits. Employees who sense their jobs
are secure may also be more dedicated to pursuits
requiring a long-term focus because they feel at-
tached to the organization and identify with its goals.
Large companies such as Southwest, Aflac, and Toyo-
ta have created ‘no-layoff’ policies and are abiding
by them even when sales volumes temporarily de-
cline (Dickler, 2008). These companies typically sup-
ply further training for their employees during these
slow periods.
Of course, SMEs may not have the slack resources
to offer such training when sales suffer. They may
have to be more creative during these trying times to
maintain their no-job-loss goals, requiring more than
simply tightening up on overtime and paid leave. Matt
Legg, the owner of a small home health business in
Texas, used the ‘doing well by doing good’ strategy
when his business sales began slowing (Flandez,
2009). Legg paid his employees during these slow
times to volunteer at local health clinics, which
unintentionally ended up benefiting his business by
creating referrals and improving customer demand.
Legg’s volunteering program worked well for his
business, but may not work well for all companies.
So, how can you generate ideas to improve job
security? Ask your employees. By engaging employees
in these discussions, they can actively participate and
collaborate with management in developing more
non-traditional means for dealing with job security
threats so SMEs can beneficially persevere through
tough times.
2.3. Feedback
Having demonstrated the benefits of acquiring top
talent and building commitment throughout the
organizational ranks, the third pillar to reinforce
the goal of achieving innovation is feedback. Em-
ployees need to know how they have contributed
and can contribute in the future. For companies
with limited financial resources, these feedback
practices are relatively inexpensive, quick to im-
plement, and easily adopted. While there are undoubtedly
many ways of providing feedback to
employees, we review three means that are known
to impact innovation positively: formal information-
sharing programs, personal development plans, and public recognition.