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Top Corporate Actions Affecting Employee Morale In This Trying Economy
By: Chris Blauth
We all have at least one thing in common these days. Uncertainty.
The way we handle important decisions has been greatly affected by the downturn in the economy. Maybe now you feel slightly uncomfortable spending money on luxuries, or are a bit uneasy about how you diversify your portfolio of investments. Now we all are managing our decisions – and our life – differently.
This change in thinking and behavior also translates into the business world. Like their teams, leaders feel the sting of what is now considered daily business events, such as budget cuts, office and plant closures, insolvency, and layoffs.
In addition to pressures leaders feel themselves to meet corporate expectations, they also face the challenge of motivating others to execute actions that will help to attain goals. This is especially tough when companies are having to make serious cuts – in many aspects of the business.
According to our research:
• 75.2 percent of companies have cut discretionary spending.
• 65.2 percent have stopped hiring.
• 51.2 percent have frozen pay.
• 49.8 percent have laid off employees.
• 20 percent have cut working hours.
• 19.6 percent have reduced employee benefits.
• And 15.2 percent have closed locations.
Which of the above actions, that your organization has been forced to make, do you think has impacted employee morale the most?