Economic Downturn Leading to Decline in Employee Commitment, Morale, Watson Wyatt and WorldatWork Survey Finds

Economic Downturn Leading to Decline in Employee Commitment, Morale, Watson Wyatt and WorldatWork Survey Finds

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Economic Downturn Leading to Decline in Employee Commitment, Morale, Watson Wyatt and WorldatWork Survey Finds >

Sept. 21, 2009 — Scottsdale, Ariz. — The cost-cutting actions that employers have been making to deal with the economic crisis have caused a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by Watson Wyatt, a leading global consulting firm, and WorldatWork, an international association of human resource professionals. >

The 2009/2010 U.S. Strategic Rewards Study found that employee engagement levels for all workers at the companies surveyed have dropped by nearly 10% since last year, and by 23% 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 survey also found that 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. The survey was conducted in May 2009 and is based on responses from 235 large U.S. employers and 1,300 full-time workers. >
“The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant,” said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. “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 increase the risk of companies losing their best employees.” >

The survey also found that most top-performing employees say they aren’t 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. 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. >

“One of the many challenges employers will face as the economy recovers is how to re-engage employees, and especially top performers,” said Ryan Johnson, CCP, vice president of research at WorldatWork. “Taking a total rewards approach and looking at all of the ways companies can motivate and retain — including compensation, benefits, work-life initiatives and career development — is going to be essential.” >

Other findings from the survey include:>

- The percentage of employers reporting difficulty in attracting critical-skill employees declined from 66% in 2008 to 28% this year, while the percentage reporting difficulty retaining these workers declined from 47% to just 16%. >
- Nearly three out of four (72%) employers have gone through a restructuring or made layoffs since the economic downturn began last year. >

Access the Watson Wyatt and WorldatWork 2009/2010 Strategic Rewards Study here.

Contents © 2009 WorldatWork. No part of this article may be reproduced, excerpted or redistributed in any form without express written permission from WorldatWork.

Access Original Post: http://www.worldatwork.org/waw/adimComment?id=34571

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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.