Employers’ cost-cutting actions caused by the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to a recent survey.
The 2009/2010 U.S. Strategic Rewards Survey, conducted by Watson Wyatt and WorldatWork, found employee engagement levels for all workers at the companies surveyed have dropped 9 percent since last year, and close to 25 percent for top performers.
About 36 percent of top performers said their employer’s situation has worsened in the past year. Compared with last year, top performing employees are 26 percent less likely to be satisfied with advancement opportunities at their company. They are also 14 percent less likely to want to remain with their company versus take a job elsewhere.
"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 as an increase in the risk of companies losing their best employees."
The survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large U.S. employers.
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 61 percent said their companies have reduced or suspended bonuses, while only 35 percent agreed their employers reward top employees for performance.
"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."
