Workplace Morale is Down, but Better than Expected June 04, 2009 The recession is hurting employee morale, but not as much as managers expected, according to a new study
By Allison Shafir, Nielsen Business Media
The new survey of employees and HR managers conducted by employee recognition company Globoforce, finds that worker morale and productivity are in a state of decline due to recessionary cutbacks, with 70 percent of employees reporting that layoffs and the reduction in programs and benefits have and will continue to negatively impact their morale. In addition, 55 percent believe that these cuts have also affected their productivity levels.
But these numbers are not as high as HR managers expected. Of the managers surveyed, a full 89 percent believed the recession was having an impact on employee morale. Additionally, 80 percent believed that company layoffs, bonus reductions, and payroll freezes would impact employee goodwill toward their employers. In fact, 45 percent of employee respondents indicated that these cuts have had "very little or no impact on their goodwill [toward their employers]."
The survey also reported that two-thirds of HR professionals have had layoffs within their organizations and more than one third (37 percent) believe they may have to conduct layoffs again in the upcoming months. Among the cost-reducing measures being taken, the biggest cuts have been in merit increases (63 percent), bonuses (47 percent) and training programs (45 percent).
"While people may be attempting to 'grin and bear it,' the reality is that beneath those smiles are fear and uncertainty, which create a distracted and disengaged workforce," said Derek Irvine, chief marketing officer and head of strategy at Globoforce in a statement.
Asked how employers could best respond to the current challenges, more than 75 percent of both managers and employees agreed that communicating company goals, initiatives, and values to ensure employee alignment was the best way.
Winners and Nominees for Incentive's 1st Annual Motivation Masters Awards We announce the finalists of our first annual Motivation Masters awards. These 13 finalists are already the recipients of a 2009 Motivation Masters award in one of seven categories. On Dec. 6, we will announce the ultimate winner, the Motivation Master of 2009, at the 6th Annual Las Vegas Incentive Marketplace.
Frito-Lay Kudos to Million-Mile Safe Drivers PepsiCo's Frito-Lay North America is recognizing 95 delivery drivers who this year have reached the career milestone of driving more than 1 million, 2 million or 3 million miles accident-free.
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