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VEGAS INC C OV E R STO RY Keep employees informed about changes, and they'll work harder COMMUNICATION, From page 1 So they came up with a new business plan: They backed out of construction and moved into bus repairs. And again, Machin and Edwards gathered their staff in the war room to talk about the future. They explained the changes the company would undergo. They spoke honestly about the sacrifices they needed to make. They shared the rationale behind their decisions. They did everything right, experts said. When a company anticipates a major change – downsizing or an expansion, for instance – the key to a smooth transition is communication with employees, even when the news is bad. It's up to business owners to be wary of the effect their decisions have on staff. "Communication is the key," Machin said. "We're very transparent. We always share with our staff our vision, and we take input from them. If your staff believes in your leadership, then they're going to follow you." Even as Edwards and Machin cut hours and streamlined inventory to stay afloat, their workers supported them. In fact, Machin said, employees worked even harder to make sure the company survived. "They were patient," he said. "We continued to fund their payroll during downtimes, and they got onboard." Because staff members knew what was happening, "it wasn't where everybody was like 'Oh, my God, we're going to be out of jobs,'" Machin said. "We knew that was going to be key. The culture was the key to us, as was our staff's supporting our vision." Today, RO Truck is known as RO Bus Sales. The company performs bus fleet maintenance and fabrication for local hotels and senior centers, the Nevada 18 20130513_VI01_F.indd 18 PHOTOS BY LEILA NAVIDI THE GARAGE: The owners of RO Bus Sales kept worker uncertainty to a minimum by talking to employees about upcoming changes and the rationale behind them. Regional Transportation Commission and companies in Utah and California. The firm has quadrupled its revenue, outlasted two of its competitors, expanded into a larger building and earned a Small Business of the Year award from the Nevada district of the Small Business Administration. ••• Employees can tell when a company is struggling to stay afloat. They notice co-workers walking out with cardboard boxes and take stock of empty cubicles. They feel the burden of heavier workloads and the sting of cut hours and shrinking salaries. All combine to instill a sense of uncertainty in a workplace, said Dianna Russo, managing principal for the CPA firm Houldsworth, Russo and Company, which offers businesses advice. If left unaddressed, she said, that uncertainty can fester and infect an entire company. Russo "People are worried: Are they next?" Russo said. "The fear is, 'Wow, what's going on? Am I going to lose my job?'" Jeff Waddoups, a UNLV economics professor who specializes in labor, said employees who remain in companies that are downsizing often end up feeling survivor's guilt. They begin to wonder why they were spared and if and when their time will come. "Unemployment is one of those life events that is the most stressful," Waddoups said. "It causes people to be the most unhappy." If employees are asked to take on more work without an explanation about what's happening and why, they | 1 3 M AY 2 0 1 3 | 5/9/13 2:11:08 PM