Welcome to AvidBuilder's human performance column, focusing on the human capital segment of the home-building business. You have heard, and most likely uttered, the phrase: “People are our most important asset.” Although there can be debate as to the value of assets in different businesses, people unquestionably shape and evolve the culture of every organization. In this column, I will focus on various elements related to managing and motivating human performance.

The past few years have forced employers in nearly all industries to make tough decisions and significant cutbacks. Although many employers took measures to minimize downsizing, most businesses found themselves needing to reduce workforces, freeze salaries, and reduce or eliminate bonus programs.

As homebuilders watch for glimmers of positive economic news, it is also critical for them to look closely inside their organizations to evaluate their employees’ point of view.

According to an annual survey by consultancy Watson Wyatt and WorldatWork, an association of HR professionals, cost-cutting actions made by U.S. employers in 2009 to deal with the economic downturn contributed to a sharp decline in the morale and commitment of their workers, especially top performers.

The “2009/2010 U.S. Strategic Rewards Survey” found that employee engagement levels among all employers declined significantly, particularly among top performers. Additionally, 36 percent of top performers say their employer’s situation worsened over the past year, and the number who would recommend others take jobs at their company has declined by nearly 20 percent.

These statistics reflect employees’ current perspectives. They have been asked to take on new and expanded responsibilities. They have been expected to perform a wide range of tasks — from minutia-level administrative chores to large-scale duties. Hiring has been frozen, and advancement opportunities have been extremely limited. Budgets to support training and development have been nixed, and employees are expected to learn nearly all aspects of their job “on the fly.” Meanwhile, many employers are still operating with a philosophy of “Well, they should be thankful they still have a job.”

However, these changes impact more than employees’ satisfaction with their jobs and employers. According to the survey, 41 percent of respondents believe there has been a negative effect on work quality and customer service, and 29 percent are less confident in management’s ability to grow the business.

Given this, focusing on your current employees — especially the high performers — should be a vital part of your business strategy. Engaging your employees will have a positive impact on your performance today and as the economy improves in the future.

The expense, time, and stress involved in recruiting top talent is significant. Therefore, it makes sense to “re-recruit” your best workers, mentor them, listen to their ideas, and make them feel valued.

This involves more than just a salary increase, because almost nine in 10 departing workers leave for reasons other than pay. You must rely on a wide range of strategies (from engaged supervisors and effective recognition programs to training opportunities and one-on-one coaching) to retain your top employees these days. At the heart of these strategies lies a solid and consistent communication strategy.

As we wind down Q1 of 2010, take time to evaluate your people strategies for the year and assure they are among your top priorities for sustaining and growing your business.

Jayne Phillips, SPHR, is an AVID Advisor with AVID Ratings, the leading provider of customer loyalty research and consulting to the home-building industry. Through the AVID system, homebuilders improve referrals, reduce warranty costs, and strengthen their brands. She can be reached at jayne.phillips@avidratings.com