Business IdeasCost cutting actions hurting employee morale, commitment
The cost cutting measures taken by companies to tackle economic crisis, have sharply eroded morale and commitment of their employees, especially of the top performers, a study by Watson Wyatt says.
According to an annual survey by global consulting firm Watson Wyatt and WorldatWork, an association of HR professionals, employee engagement levels for all workers at surveyed firms have dropped 9 per cent since last year and as much as 25 per cent for top performers.
Besides, 41 per cent believe that pay and benefit changes made by their employer in the past year have had a negative effect on work quality and customer service.
The survey was conducted in May and is based on responses from 1,300 full-time workers at large US employers.
"The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant," Watson Wyatt Global Director of Strategic Rewards Consulting Laura Sejen said.
"Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality and customer service, as well as an increase in the risk of companies losing their best employees," Sejen added.
The survey also found that most top-performing employees said they were not expecting to receive the same bonus or pay increase as they have in the past, even though historically companies have rewarded them with pay commensurate with their performance.