Morale problems

The economic downturn is leading to a decline in employee commitment and morale, according to a WatsonWyatt/WorldatWork survey.

“The cost-cutting actions that employers have been making to deal with the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers,” Watson Wyatt noted in a statement. The survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large U.S. employers.

The 2009/2010 U.S. Strategic Rewards Survey found that employee engagement levels for all workers at the companies surveyed have dropped 9% since last year, and close to 25% for top performers. Additionally, 36% of top performers say their employer’s situation has worsened in the past 12 months and the number who would recommend others take jobs at their company has declined by nearly 20%.

Compared with last year, top-performing employees are 26% less likely to be satisfied with advancement opportunities at their company. They are also 14% less likely to want to remain with their company versus take a job elsewhere.

"The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant," Laura Sejen, global director of strategic rewards consulting at Watson Wyatt, said in a statement. "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."

OTHER FINDINGS
• Top-performing employees are 29% less confident in management’s ability to grow the business, and 41% 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.

• More than six in 10 (61%) say their companies have reduced or suspended bonuses, while only 35% agree their employers reward top employees for performance.

• Additionally, 43% of top performers said individual performance expectations have increased since last year, while one-third (32%) say their company’s financial performance goals have increased.

• Regardless of whether companies downsized, 89% of employers report taking at least one or two actions to minimize the extent of workforce downsizing. On average, survey participants report taking 3.5 different actions.

• Nearly three out of four (72%) employers have gone through a restructuring or made layoffs since the economic downturn began last year.