Home > Worker Productivity > Recession Remains Ugly, Renders Workers Unhappy

Recession Remains Ugly, Renders Workers Unhappy

November 9th, 2009

More grim news from the land of statistics: The recession may be waning, but a recent survey reveals that its effects will be felt by employers (and their customers) long after it’s over.

To combat attrition, researchers suggest starting with the issue of employee engagement.

Researchers for nonprofit HR organization WorldAtWork and consulting firm Watson Wyatt found that employee engagement levels dropped 9 percent since 2008, and by almost 25 percent for top-performing workers.

It’s not a surprise that dissatisfaction is growing among those who still have jobs. They are now responsible for doing their own work, plus that of their sacked colleagues. What’s more, with salary and bonus freezes in effect, those employees aren’t being compensated for their extra efforts. (Granted, those pay freezes did save them their jobs.) A decline in productivity is inevitable.

And there’s one more factor: According to the same survey, 41 percent of employees believe that the cost-reduction measures that have been taken by their employers are adversely affecting quality and customer service.

“This decline in productivity might be attributable in part to employees’ feeling they lack the resources to do their job well,” the researchers write. “But it is also due to declining employee engagement, weakened commitment, less clarity of expectations and fewer rewards for job performance”

To combat attrition, researchers suggest starting with the issue of employee engagement (defined as “a combination of employee commitment and line of sight”). In addition to the obvious move of reinstating bonuses, employers can motivate employees by offering other, non-monetary incentives, such as training and career development.

There is no quick fix, however. The study’s authors advise companies to begin taking measures immediately to offset the ill will generated from cost-cutting actions – but they warn that it could take a while. “It requires, vision, action and sustained commitment over time,” researchers write in the study.

Download the entire report, titled “Looking Toward Recovery: Realigning Rewards and Re-Engaging Employees,” in .pdf form.

Read a related post: “Employee Retention 101.”

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