The 2009/2010 U.S. Strategic Rewards Survey conducted annually by Watson Wyatt and WorldatWork revealed the impact downsizing and corporate rationalisation programs have had on employees. Key findings included;- Employee engagement levels for all workers dropped 9% in the last year, for top performers this decrease is 25%.
- 43% of top performers said individual performance expectations have increased since last year.
- 20% less people would recommend others take jobs at their company.
- Top performers are 14% less likely to stay with their current employer.
- 61% say their companies have reduced or suspended bonuses.
- 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.
Many of the decisions made within organisations over the past 12-18 months were done out of sheer survival mode in reaction to the unknown. As a result, many organisations are now running a much leaner operation which will position them well financially for the next 2 year. However how much of this can be banked?
With as many as 50% of people looking to change jobs when the market recovers, it is imperative that organisations look at the total value proposition being offered to their employees with a critical eye.
- What does your value proposition consist of?
- Do all your employees know about the benefits that your organisation currently offers?
- What could you add to this proposition that would be of value to your current employees? How will you promote or communicate this?
The lasting financial effects of rationalisation and downsizing programs can all be undone in an instant if faced with a 30-50% workforce turnover rate in one year. Whilst most employees understood the decisions taken by organisations during the crisis were a matter of necessity, spending money in the coming months on recruiting new people rather than rewarding existing staff will be a kick in the face for the loyal employees who have supported the organisation through the down turn.
The 2009/2010 U.S. Strategic Rewards Survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large U.S. employers. Read more about the Strategic Rewards Survey at http://www.watsonwyatt.com/news/press.asp?ID=22341
