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| Cost cutting actions hurting employee morale, commitment |
| Press Trust of India / New York Sep 23, 2009, 19:26 IST |
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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.
"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," the report stated.
Additionally, 36 per cent of top performers said their employer's situation had worsened in the past 12 months.
The survey revealed that top-performing employees are 26 per cent less likely to be satisfied with advancement opportunities at their company compared to last year.
Moreover, they are also 14 per cent less likely to want to remain with their company, it added.
The survey also found that top-performing employees are 29 per cent less confident in management's ability to grow the business.
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.
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