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Cost-Cutting Actions Lead to Decline in Morale

Guest post by: Allison Grace

Article Overview: The 2009/2010 U.S. Strategic Rewards Survey conducted by Watson Wyatt and WorldatWork, found that cost-cutting actions made by U.S. employers in 2009 to deal with the economic downturn have contributed to a sharp decline in the morale and commitment of their workers, especially top performers.

Cost-Cutting Actions Lead to Decline in Morale

The 2009/2010 U.S. Strategic Rewards Survey conducted by Watson Wyatt and WorldatWork, found that cost-cutting actions made by U.S. employers in 2009 to deal with the economic downturn have contributed to a sharp decline in the morale and commitment of their workers, especially top performers. The survey found that employee engagement levels among all employers dropped 9% since 2008 and have plunged close to 25% among top performers. Additionally, 36% of top performers say their employer's situation worsened over the past year; the number who would recommend others take jobs at their company has declined by nearly 20%.

Having less engaged and committed workers is a major concern for employers, and 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.

The percentage of top-performing employees who say they:

Believe that pay and benefits changes made by their employer in the past year have had a negative effect on work quality and customer service - 41%

Are less confident in management's ability to grow the business - 29%

Are less likely to be satisfied with advancement opportunities at their company - 26%

Are less likely to want to remain with their companies vs. take a job elsewhere - 14%

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Article Tags: decline, economic downturn, rewards, top performers



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